High Court Overrules ED Action in MUDA Land Allotment Case
The Karnataka High Court on Friday set aside summons issued by the Enforcement Directorate (ED) to Karnataka Chief Minister Siddaramaiah's wife, Parvathi B.M., and Urban Development Minister B.S. Suresh (Byrathi Suresh), in connection with the controversial Mysuru Urban Development Authority (MUDA) site allotment case.
Justice M Nagaprasanna pronounced the judgment after reviewing petitions filed by Parvathi and Minister Suresh, who challenged the legitimacy of the ED's summons. The court had earlier stayed these summons on January 27.
Arguments Presented by Both Sides
Senior Advocate Sandesh Chouta, representing Parvathi, argued that the ED was unnecessarily running a parallel probe while investigations by the Lokayukta police and a Special Investigation Team (SIT) were already underway.
Additional Solicitor General Arvind Kamath, appearing for the ED, maintained that Parvathi was the second accused in the predicate offence and had reportedly received proceeds of the alleged crime. Kamath also asserted the ED’s authority under the Prevention of Money Laundering Act (PMLA) to summon even individuals not directly named as accused, primarily for obtaining documents and evidence.
Senior Advocate CV Nagesh, defending Minister Suresh, strongly contested the ED’s action, arguing that his client was never named as an accused, rendering the summons invalid.
Background of the MUDA Site Controversy
The case revolves around allegations that Chief Minister Siddaramaiah misused political influence to secure 14 prime compensatory plots from MUDA in Mysuru’s upscale Vijayanagar Layout (3rd and 4th stages) for his wife, Parvathi. These sites, allegedly worth around ₹56 crore, were allotted under a controversial 50:50 compensation scheme.
Under this arrangement, MUDA typically allocated half of the developed land to original landowners in exchange for their undeveloped land acquired to build residential layouts. However, the ED alleged that Parvathi had no legal title to the original 3.16 acres of land at Survey No. 464, Kasare Village, Kasaba Hobli, Mysuru Taluk.
Lokayukta Police's Findings
Following a detailed probe, the Lokayukta police had already issued a clean chit to Siddaramaiah, Parvathi, and two other accused last month. The investigative authority concluded that the allegations lacked substantial evidence and could not be proven against the accused.
An FIR had initially named Siddaramaiah, Parvathi, her brother B.M. Mallikarjun Swamy, and Devaraju—who originally sold the land to Swamy, who later gifted it to Parvathi—as accused, on the directions of a Special Court designated for cases involving MPs and MLAs. The Lokayukta FIR was lodged on September 27, 2024.
Subsequently, on September 30, the ED registered an Enforcement Case Information Report (ECIR), taking cognisance of the Lokayukta FIR. In January, the ED had also issued a provisional attachment order, alleging attempted money laundering in the controversial allotment of MUDA sites.
High Court Decision Provides Relief to Parvathi and Minister Suresh
The Karnataka High Court’s ruling provides significant relief to Parvathi and Minister Suresh by nullifying the ED's actions. The decision is a major development in the high-profile MUDA case, which continues to attract considerable public and political attention in Karnataka.