Karnataka: Institutionalisation of corruption, Congress style

The Congress-led government in Karnataka, often hailed in the media as a pro-poor, pro-Dalit government, has been accused of orchestrating a series of scams that have not only siphoned off public resources but also betrayed the communities it promised to improve. At the heart of this corruption is the Congress’ notorious family-first policy. At the national level, the Sonia family reaps the rewards of corruption, while in Karnataka, it is the families of Congress leaders that get priority.

After Siddaramaiah’s MUDA scam, the spotlight now shifts to Mallikarjun Kharge and his family, who are next in line to benefit from this dynastic favouritism and self-enrichment. This delves into major scandals that collectively underscore the deep-rooted corruption of the Karnataka Congress Government. Land Allotment to a Kharge Family Trust

The scandal came to light when it was found that a five-acre industrial plot had been allotted to Siddhartha Vihara Education Trust, controlled by the family of AICC president Mallikarjun Kharge. The industrial plot is located in Aerospace Park, which falls under the Karnataka Industrial Area Development Board (KIADB).

Despite the family’s considerable wealth, it is believed that the land was allotted to entrepreneurs under the Scheduled Caste Reservation Scheme and purchased for a fraction of its market value.

Chalavadi Narayanaswamy, BJP leader in the Karnataka Legislative Council, has accused the Kharge family of misusing political power to acquire land at the expense of the poor and marginalised communities of the state. Narayanaswamy has called for the immediate resignation of Priyank Kharge, son of Mallikarjuna Kharge and a minister in the Congress government. He has also demanded that the land be returned to the state.

The BJP has demanded that Mallikarjun Kharge immediately resign as Congress party president and Priyank Kharge step down as a minister in the state government. It has also demanded a thorough CBI probe into the deal.

Embezzlement of pension funds

The Maharshi Valmiki Scheduled Tribes Development Corporation, set up to uplift the Valmiki community by providing housing, education and employment, has become a classic case of mismanagement and embezzlement, with funds meant for the tribal community allegedly ending up in the coffers of corrupt officials and the Congress political ecosystem.

B Nagendra, former president of Valmiki Development Corporation and former minister, was arrested by the CBI for allegedly transferring Rs 194 crores illegally. He is now in judicial custody.

According to an Enforcement Directorate (ED) report, a staggering Rs 89.62 crore was siphoned off from the Karnataka Maharishi Valmiki ST Development Corporation Limited. The funds were diverted to 18 fake accounts in Andhra Pradesh and Telangana, with subsequent layering through shell accounts. The probe revealed that some of the diverted funds were used for personal luxuries, including the purchase of a Lamborghini and a considerable quantity of liquor, allegedly aimed at influencing the Lok Sabha elections.

On July 10, 2024, the ED conducted search and seizure operations at 23 locations in four states, during which crucial evidence was found linking B Nagendra and Basanagouda Daddal, the chairman of the Corporation, to the scam. Incriminating documents linking them to the manipulation of funds during the election period were seized by the agency.

When the fraud came to light, Valmiki Development Corporation Superintendent S Chandra Shekaran committed suicide (on May 26). In his suicide note, he gave details of how he was pressured by politicians.

This scandal is not only a case of financial embezzlement but also a blatant violation of the trust the Valmiki community had in the state government.

MUDA scam

The MUDA scam dates back to 2004 and involves the illegal transfer and sale of government land in Mysuru. The land meant for public use was given away to private developers at throwaway prices. The controversy revolves around alleged irregularities in the allocation of compensatory sites. At the heart of the scam is a 3.2-acre plot of land gifted to the Chief Minister’s wife Parvathi by her brother Mallikarjunaswamy in 2010. After the land was acquired by MUDA, Parvathi demanded compensation and was subsequently allotted 14 plots, reportedly much more valuable than the original land. Opposition parties estimate that the scam could be worth anywhere between Rs 3,000-Rs 4,000 crore.

According to RTI officer Gangaraju, around Rs 4,000 crore worth of corruption has taken place in MUDA alone. Interestingly, state minister Siddaramaiah is also one of the beneficiaries of the MUDA scam. The RTI officers filed a complaint with the Governor, who gave permission to prosecute Siddaramaiah. The opposition BJP has alleged that the minister’s relative bought the land in 2004 without any documentation of sale transactions. It is understood that the Congress leader’s relative bought land that had already been converted into houses and then converted the land again with the help of corrupt officials or by pressuring them.

Siddaramaiah’s alleged involvement in MUDA
fraud must be investigated

These scandals are not isolated incidents but part of a broader pattern of corruption within MUDA. The authority has been accused of selling prime land parcels at throwaway prices to politically connected individuals while genuine applicants, including economically weaker sections, have been made to wait for years. The Congress government’s failure to address these issues has only deepened public distrust, with many accusing the government of being in cahoots with corrupt officials and the real estate mafia. What is unfolding in Karnataka is an example of the Congress party’s standard template of self-interested politics. Their rule has consistently followed a deep-rooted pattern of deceit and corruption. The scam-ridden Congress often spreads disinformation, plants false narratives and makes unrealistic promises to manipulate public opinion and secure votes. Corruption is the party’s bloodline, indulging in scams, looting the exchequer and orchestrating irreversible deals for party benefits is the norm. Public funds are often diverted to support the Congress party’s agendas or election expenditures. Moreover, the party entrenches dynastic politics, concentrating power and resources among family members and close associates, undermining democratic institutions and suppressing meritocracy.

As the state prepares for the next round of local body elections, it is imperative that the electorate holds the Congress government accountable for its actions. The scandals plaguing the state are a stark reminder of the need for a government that is not just pro-poor and pro-Dalit in rhetoric, but also in action. Earlier this month, from August 4 to 11, the BJP, in alliance with the Janata Dal (Secular) (JDS), organised a week-long padayatra from Kengeri in Bengaluru to Mysore. This protest was also intended to pressure Siddaramaiah to resign amid the ongoing controversies.

The BJP has intensified its protests against the Siddaramaiah government. After a series of demonstrations, including strikes in the state parliament, the BJP is now considering scaling up its protests by moving them to the national capital Delhi.

The courts will decide whether to allow an investigation into Siddaramaiah’s alleged involvement in the MUDA scam. This decision, while crucial, will affect the BJP’s next move, particularly its planned protest. If the court decides to go ahead, the BJP is expected to mobilize a large protest in the first week of September. The party leadership is closely monitoring the situation, with final plans dependent on the court’s verdict. A senior BJP leader has indicated that the protest is likely to include BJP MPs, MLAs and other prominent figures, all demanding Siddaramaiah’s resignation in response to the scandal.