Why in News? In a big setback to CM Siddaramaiah, Karnataka HC dismissed his petition challenging the sanction given by Governor Thaawar Chand Gehlot to investigate him in the MUDA scam case.

What’s in Today’s Article?

• Background of the Mysore Urban Development Authority (MUDA) Scam Case
• What did the Karnataka HC Decide?
• Effect of the HC’s Order on Karnataka Politics

Background of the Mysore Urban Development Authority (MUDA) Scam Case:

• It started when three anti-corruption activists approached the governor for sanction to file complaints against the Karnataka CM.
• They alleged that his wife received 14 housing sites from MUDA in exchange for a 3.16-acre plot of land that MUDA illegally acquired in 2021 during the previous BJP-led government’s tenure.
  • This allegedly resulted in a Rs. 55.80 crore loss for the state.
• Karnataka Governor issued a show cause notice to the CM and sanctioned the proceedings against him under the Prevention of Corruption Act (PCA) 1988 and the Bharatiya Nyaya Sanhita (BNS) 2023.
• The CM challenged this sanction (on the ground that the Governor of a state is bound by the aid and advice of the Council of Ministers) and the Karnataka HC placed an embargo on the trial against him.

What did the Karnataka HC Decide?

• Issue before the court - To examine Section 17A of the PCA:
  • It specifically deals with the procedure when the police seek sanction to conduct an inquiry.
  • This led to the question of whether sanction for prosecution can be given when a private person is a complainant.
• Ruling of the court:
  • The PCA does not require only a police officer to seek approval to investigate a public official. In fact, it is the duty of a complainant to seek such approval even if they are a private citizen.
  • After seeing the facts of the case, investigation into the alleged MUDA scam case and its beneficiary (the Karnataka CM’s family), is certainly necessary.
  • Hence, the governor's order nowhere suffers from want of application of mind and the alleged haste does not invalidate the order.
• Impact of the ruling: The order essentially allows the three RTI activists to approach an anti-corruption agency such as the Karnataka Lokayukta police to seek a probe into the MUDA scam case.

Effect of the HC’s Order on Karnataka Politics:

• Options before the CM:
  • Siddaramaiah, considered one of the top Backward Class leaders in Karnataka, is expected to be allowed to wage a legal battle.
  • The Congress party can take a high ethical stand that the CM cannot continue if an FIR is registered against him.
  • In 2010, the then Maharashtra CM Ashok Chavan was asked to step down by the party on moral grounds over allegations that three of his relatives were beneficiaries of flat allotments in the Adarsh housing scam.
• Political narrative favours the CM:
  • He is expected to benefit from the current political narrative, which portrays agencies and institutions as being exploited to take revenge on adversaries or force them to join the BJP.
  • The Congress has projected the case as being part of a conspiracy by the principal Opposition party (BJP) to dislodge non-BJP CMs across the country by various means.