Daijiworld Media Network - Bengaluru
Bengaluru, Apr 15: The Special Court for MLAs and MPs on Tuesday, April 15 ruled that a decision on the closure report in the Mysuru Urban Development Authority (MUDA) case—where chief minister Siddaramaiah and his family members have been named—will be made only after the Lokayukta completes its ongoing investigation.
The court directed the Lokayukta to submit its final report by May 7, observing that the current closure report contradicted itself. "On one hand, the Lokayukta has filed a closure report, while on the other, it states that the investigation needs to continue. Let the probe be completed first,” the court stated.

The Enforcement Directorate (ED), which had raised objections to the closure report, was allowed by the court to file a formal objection challenging the findings. While the counsel representing the Lokayukta had argued that the ED cannot be considered an aggrieved party in the matter, the court maintained that the ED had the right to seek further investigation.
The matter was heard by Judge Santhosh Gajanan Bhat, who had reserved his order after concluding hearings on April 9. The ED had moved the court seeking directions against accepting the closure report filed by the Lokayukta, urging the court to allow further investigation based on findings it had submitted earlier.
According to the ED, the MUDA case involved serious allegations of money laundering, and it argued that the findings it shared with the Lokayukta police had not been adequately considered. Senior counsel Madhukar Deshpande, representing the ED, said that the Supreme Court has clearly held that cases of money laundering should be taken seriously, and that accused individuals should not be easily let off.
The MUDA case names chief minister Siddaramaiah as the first accused, his wife Parvati as the second, and his brother-in-law Mallikarjunaswamy as the third. The Lokayukta had earlier filed a 'B report'—a closure report—citing lack of evidence to proceed with prosecution.
The court’s ruling to await the final report sets the stage for further scrutiny, with the next hearing scheduled for May 7.