The Karnataka Cabinet has accepted the Justice P.N. Desai Commission's report, effectively exonerating Chief Minister Siddaramaiah and his family from any wrongdoing in the alleged Mysuru Urban Development Authority (MUDA) scam. Minister H.K. Patil confirmed that the commission's findings clear the Chief Minister and his family of any illicit activity related to the MUDA matter. The report, submitted to the government on July 31, followed investigations into allegations of irregularities in site allotments within MUDA.

The case, which had become a significant political issue for Siddaramaiah, revolved around accusations that his wife, Parvathi, had illegally received 14 plots in a prime Mysuru location in exchange for 3.16 acres of her land in Kesare village, which she claimed MUDA had taken over. The commission, led by retired judge P.N. Desai, investigated these claims, ultimately concluding that the allotment of sites as compensation could not be deemed illegal.

The Commission highlighted that MUDA had two compensation methods for lands utilized without formal acquisition: land and sites. According to MUDA's information provided to the Commission, 72.34 acres of land were used without proper acquisition. The report stated that allotting sites is a recognized method by MUDA and the Bangalore Development Authority (BDA) to compensate willing landowners whose land was used without acquisition, resolving disputes. It further noted that without any existing statutory rule, law, or regulation prohibiting it, this compensation method could not be considered illegal or unlawful.

In Parvathi's case, the Commission noted that she had requested "alternative undeveloped land" as compensation. While a resolution was passed in 2017, it was not implemented until 2022, when sites were allotted at a 50:50 ratio, following the standard compensation procedure.

The Desai Commission has recommended legal action against officials found responsible for irregularities within MUDA. The commission suggested a thorough investigation by a technical team to address all illegal site allotments. It specifically pointed out that 1,095 sites were issued based on office memos, and some lacked registered deeds. The report also found instances where 30 to 40 sites were illegally allotted to a single person without proper entitlement and that Commissioners had defied government directions in site allotments. The commission has called for the cancellation of these illegal allotments and for action to be taken against the responsible officials.

While the state cabinet is moving forward with the recommendations, the Enforcement Directorate (ED) is separately investigating the allegation that MUDA acquired 3.16 acres of land owned by Parvathi in Kesare village. It's alleged that Siddaramaiah used his political influence to ensure his wife received compensation of 14 sites in her name, B.M. Parvathi, in exchange for the land acquired by MUDA. It is worth noting MUDA originally acquired the land for ₹3,24,700, but the compensation in the form of 14 sites in a posh locality is valued at approximately ₹56 Crore.

Additionally, Karnataka Minister H.K. Patil announced that the state cabinet would recommend using ballot papers instead of EVMs for local body elections to the State Election Commission.