The Mysuru Urban Development Authority (MUDA) is on the verge of defaulting on its commitment given to land-losers during a Lok Adalat meeting. It has already received court notice for attachment of its movable and immovable properties for its failure to award compensation to land losers.
MUDA, which owed Rs. 93 lakh per acre for 612 acres of land as per court orders, had managed to convince land-losers to accept Rs. 42 lakh for every acre during a Lok Adalat meeting held on November 19, 2014.
Though July 15 was fixed as the deadline for clearing dues, the government is yet to give its approval for MUDA to go ahead with the settlement.
When there was no response to the letters written by MUDA to the Secretary of Urban Development Department, Bengaluru, MUDA Chairman K.R. Mohan Kumar wrote to Chief Minister Siddaramaiah seeking his intervention. “Government approval has not yet come,” regretted Mr. Kumar.
At the rate of Rs. 93 lakh per acre, MUDA owes Rs. 569 crore to the land losers. “If the mutual agreement is honoured, MUDA will have to pay only Rs. 257 crore. We have already deposited Rs. 166 crore in the court towards compensation and need to pay a remainder of Rs. 91 crore,” he said.
If government approval does not come, MUDA will lose Rs. 390 crore if the additional interest is taken into account.
The courts have already disposed 272 out of 279 cases seeking enhanced compensation. Though MUDA has approached the High Court and Supreme Court questioning the lower court’s awards, the petitions have been referred back to the lower court for appeals.
The delay is settling dues will only increase the outstanding amount. “For every year of delay, the MUDA will have to pay Rs. 7 lakh more per acre,” according to a letter written by the MUDA Commissioner to the government.
