Why in the News?

On Monday, September 24, the Karnataka High Court permitted an investigation into Chief Minister Siddaramaiah in connection with the alleged Mysore Urban Development Authority (MUDA) scam.

What was the MUDA scam case?

• The Allegations: In July 2023, anti-corruption activists approached Karnataka Governor Thawarchand Gehlot, alleging that Chief Minister Siddaramaiah’s wife, Parvathi, received 14 housing sites from the Mysore Urban Development Authority (MUDA). 
  • This was allegedly in exchange for a 3.16-acre plot of land that MUDA illegally acquired in 2021, during the tenure of the BJP-led government. The scam allegedly caused a loss of ₹55.80 crore to the state.
• Governor’s Action: In response, the Governor issued a show-cause notice to Siddaramaiah and later sanctioned an investigation under the Prevention of Corruption Act, 1988 (PCA) and the Bharatiya Nyaya Sanhita, 2023.

What were the grounds for Siddaramaiah’s challenge? 

• Council of Ministers’ Advice: The Chief Minister argued that the Governor was bound by the Council of Ministers’ August 1, 2023 resolution, advising withdrawal of the show-cause notice.
• Governor’s Discretion: Siddaramaiah contended that the Governor’s sanction was unjustified, biased, and exceeded his discretionary powers, which could only be invoked if the Council’s decision was irrational.

What did the court decide?   

• The Karnataka High Court upheld the Governor’s sanction for the investigation, stating that the circumstances justified the Governor’s actions under “exceptional circumstances.”
• The court observed that the Governor’s decision was not made in haste but after careful consideration of the allegations and relevant facts.
• The court clarified that private individuals (complainants) can seek approval to investigate public officials under the Prevention of Corruption Act, and the Governor’s approval can be granted even in such cases.
• The court lifted the interim embargo on the investigation against Siddaramaiah, allowing the inquiry to continue into the alleged MUDA scam.

Conclusion: The Karnataka High Court upheld Governor Gehlot’s sanction for an investigation into the alleged MUDA scam, rejecting Siddaramaiah’s challenge. The court ruled that exceptional circumstances justified the Governor’s actions, allowing the inquiry to proceed.

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