Bengaluru: One of the complainants in the MUDA 'scam' case on Saturday filed a caveat in the Karnataka High Court after Governor Thaawarchand Gehlot granted permission to prosecute Chief Minister Siddaramaiah.

It is alleged that the Mysuru Urban Development Authority (MUDA) 'scam' pertains to the compensatory sites allotment to Siddaramaiah's wife Parvathi in an upmarket area in Mysuru, which had higher property value as compared to the location of her land which had been "acquired" by the MUDA.

The opposition cried foul and three activists lodged a complaint with Gehlot, accusing the CM of "misusing" his position.

Siddaramaiah has rejected the allegations and asserted that his wife deserved a fair compensation. He also called it a conspiracy against him to destabilise the Congress government by unseating him.

Governor Gehlot granted permission to prosecute Siddaramaiah on Saturday to investigate alleged site distribution and commission of offenses.

Siddaramaiah is expected to approach the high court to challenge or suspend the Governor's order. With the caveat now filed, the court will need to hear the arguments of the original complainant before reaching any conclusions, as per legal experts.

Following the filing of the caveat, Pradeep Kumar addressed the media and explained, "I filed the caveat because under the legal provisions, Siddaramaiah can approach the high court seeking relief. Without a caveat, he might receive relief without considering the other side of the argument. Thus, I have filed a caveat." The Karnataka government or CM Siddaramaiah has not yet taken any legal steps related to the sanction of prosecution.

Another complainant in the case, T J Abraham, said he would file the caveat on Monday.

Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.



Bengaluru, Sep 11: Karnataka Chief Minister Siddaramaiah on Wednesday said he has written to the Chief Ministers of eight states regarding the "unfair" devolution of taxes by the Union government, and has invited them to a conclave in Bengaluru to collectively deliberate on the issues of "fiscal federalism".

He said he has written to the Chief Ministers of Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Haryana, and Punjab.

"States with higher GSDP (Gross State Domestic Product) per capita, like Karnataka and others, are being penalised for their economic performance, receiving disproportionately lower tax allocations. This unjust approach undermines the spirit of cooperative federalism and threatens the financial autonomy of progressive states," he said in a post on 'X' with "#OurTaxOurRight" hashtag.

"I have invited them to a conclave in Bengaluru to collectively deliberate on the issues of fiscal federalism at a juncture when the Finance Commission needs to make a directional shift & create incentives for growth and better tax mobilisation," he said.

ALSO READ: CM denies charge of "vendetta politics" behind panel to speed up probe into scams during BJP rule

Siddararamaiah has also posted the letter written to CMs of other states on 'X'.

"As you are aware the 16th Finance Commission has begun its deliberations. The previous Finance Commissions have laid excessive emphasis on equity at the cost of efficiency and performance. As a result, states with higher GSDP per capita and higher contribution to the gross tax revenues of the union are progressively receiving lower shares of the central fiscal transfers," he said.

Stating that during the visit of the 16th Finance Commission to the State of Karnataka, during 29-30, August 2024, he underscored the need to carefully examine the impact of high emphasis given to equity on resource devolution to well performing states, he said, "I have emphasised that the reduction in central financial transfers to well performing states is placing severe limitations on their ability to invest in physical and human infrastructure."

The taxpayers of states, which are net donors to the divisible pool, also expect a fair share of their taxes to come back to them, he said, adding that the Finance Commission therefore needs to carefully balance equity with efficiency and performance.

Pointing out that states with a strong contribution to the country's GDP and Gross Tax Revenue, help build the nation in more ways than one, Siddaramaiah said, therefore, there is an urgent need to balance equity with efficiency and performance for a stronger Union, both politically and economically.

"It is, therefore, important that states which are receiving smaller shares in horizontal devolution, compared to their contributions to the Gross Tax Revenues of the Union, need to articulate a coordinated set of proposals before the Commission," he said.

"It is my pleasure to invite you to a conclave in Bengaluru to discuss these issues further. I will send a separate invitation indicating the dates once we firm up the schedule," he added.

Get all the latest, breaking news from Karnataka in a single click. CLICK HERE to get all the latest news from Karnataka.