NATIONAL: Supreme Court Slams ED in Karnataka MUDA Scam Probe
ED Faces Setback in Supreme Court
On July 21, 2025, the Supreme Court dismissed the Enforcement Directorate’s (ED) appeal challenging the Karnataka High Court’s decision to quash summons issued to BM Parvathi, wife of Karnataka Chief Minister Siddaramaiah, in the Mysuru Urban Development Authority (MUDA) scam case. The case involves allegations of illegal land allotments worth hundreds of crores. The court’s ruling marks a significant blow to the ED’s investigation into the high-profile controversy.
Court Questions ED’s Role
The bench, led by Chief Justice BR Gavai and Justice K. Vinod Chandran, criticized the ED for its involvement in politically sensitive cases. Chief Justice Gavai remarked, “Let political battles be fought before the electorate. Why are you being used?” The court cautioned the ED against being misused for political purposes, with Gavai referencing his experience in Maharashtra and warning against forcing the court to make harsh comments.
ED Withdraws Plea
In response, Additional Solicitor General SV.Raju, representing the ED, offered to withdraw the appeal to avoid adverse remarks. The Supreme Court upheld the Karnataka High Court’s ruling, stating there was no error in the decision by single-bench judge M. Nagaprasanna to quash the summons. The court emphasized that political disputes should remain outside judicial proceedings.
Details of the MUDA Scam
The controversy centers on a 3.16-acre land parcel in Kesare village, Mysuru, gifted to BM Parvathi by her brother, Mallikarjuna Swamy (Mallikarjuna Swamy), in 2010. The Mysuru Urban Development Authority (MUDA) acquired the land for development and allotted Parvathi 14 plots in the upscale Vijayanagara area in 2021 as compensation under a 50:50 scheme. These plots, valued significantly higher than the original land, sparked allegations of irregularities, with opposition parties estimating the scam’s value between ₹3,000 crore and ₹4,000 crore.
Parvathi Surrenders Plots
Following public outcry and legal scrutiny, BM Parvathi voluntarily surrendered the 14 plots to MUDA, arguing she had not benefited from any “proceeds of crime.” Her legal team contended that the allotments, later returned, did not constitute a predicate offense under the Prevention of Money Laundering Act (PMLA). The Karnataka High Court and Supreme Court agreed, quashing the ED’s summons.
Political and Legal Implications
Karnataka Chief Minister Siddaramaiah welcomed the verdict, calling it a “step towards justice” and a rebuke to politically motivated investigations. The ruling has intensified debates over the ED’s role, with opposition parties like Congress accusing the agency of targeting political rivals. The case remains under investigation by the Karnataka Lokayukta, with calls for a CBI probe still pending.