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Over 1,000 Muda sites allotted disregarding laws and regulations, ET RealEstate


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MYSURU: More than 1,000 sites were allotted under the controversial 50:50 scheme by Mysuru Urban Development Authority (Muda), disregarding all established laws and regulations. Muda officials failed to specify under which rules sites were allocated in the files, as revealed by the Lokayukta in its report to the special court, Bengaluru.

Sources confirmed that rules were violated while allocating sites as compensation to landowners under the scheme. The scheme, initially introduced in 2016 by Muda, witnessed increased allocations from 2020, leading to irregularities according to the report.

Muda officers and staff lacked understanding of the laws and regulations governing the urban development body, including the Karnataka Urban Development Authorities (Kuda) Act 1987, Right to Fair Compensation And Transparency In Land Acquisition, Rehabilitation and Resettlement Act, 2013, Kuda (Site Allotment) Rules 1991, and Kuda (Allotment Of Sites In Lieu Of Compensation For Land Acquired) Rules 2009.

An officer disclosed that Muda authorities implementing the scheme procured relinquishment letters from landowners whose land was developed into sites without acquisition and moreover without govt approval and notification. This constitutes a violation under the Kuda Act.

The investigation report indicates that the scheme commenced in 2016, without govt approval, and all decisions were made in the Muda board meetings.

The 50:50 scheme was implemented after the 40:60 scheme proved unsuccessful due to the unwillingness of landowners to share their land for development. Developed sites were allocated in premium areas before proper land acquisition procedures were completed, a source stated.

Muda has reserved thousands of sites in developed layouts and hasn’t distributed them despite more than one lakh aspirants applying for Muda, seeking allotment of sites. Muda hasn’t formed any new layouts in the last one and a half decades. Later, it released about 200 plus sites under the second phase of a project in 2017. The reserved sites, according to Muda, are premium sites and are auctioned for a premium price to generate revenue for the urban development body. Muda earns major revenue only from auctioning corner, intermediate, and commercial sites at regular intervals.

  • Published On Mar 4, 2025 at 09:43 AM IST

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