Karnataka Governor Thaawarchand Gehlot on Saturday accorded sanction for prosecution of Chief Minister Siddaramaiah in connection with Mysuru Urban Development Authority (MUDA) site allotment 'scam', giving a major jolt to the nearly 15 month old Congress government.

Hours later, the Karnataka Cabinet, at a specially convened meeting this evening under the leadership of Siddaramaiah, condemned the Governor's decision, termed it as 'politically motivated', and vowed to wage a legal fight.

Following the backing of the cabinet and the party, the chief minister questioned as to why he should resign, and said the Governor has to quit, because he acted like a 'puppet' in the hands of the Government of India.

The Governor accorded sanction under Section 17A of the Prevention of Corruption Act, 1988 and Section 218 of the Bharatiya Nagarik Suraksha Sanhita, 2023 for the commission of the alleged offences as mentioned in the petitions of activists Pradeep Kumar S P, T J Abraham and Snehamayi Krishna.

The Governor's sanction is expected to pave the way for investigating agencies to initiate a probe into the allegations against the chief minister.

In the MUDA 'scam', it is alleged that compensatory sites were allotted 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 MUDA had allotted plots to Parvathi under a 50:50 ratio scheme in lieu of 3.16 acres of her land, where MUDA developed a residential layout.

Under the controversial scheme, MUDA allotted 50 per cent of developed land to the land losers in lieu of undeveloped land acquired from them for forming residential layouts.

Opposition and some activists have also claimed that Parvathi had no legal title over 3.16 acres of land.

Bharatiya Janata Party leaders have claimed that the MUDA 'scam' is of the magnitude of Rs 4,000 crore to Rs 5,000 crore.

Shivakumar slammed the Governor's move as 'unconstitutional' and 'undemocratic', and asserted that the entire party and the government solidly stood behind Siddaramaiah as he categorically dismissed BJP's demand for Chief Minister's resignation.

"The INDIA bloc has also expressed its solidarity with the CM. These are false allegations and we will fight it legally and politically," he said.

Siddaramaiah too ruled out his resignation and said he has done no wrong to step down.

Stating that such a decision by the Governor, who is 'functioning like a puppet in the hands of the central government', was expected, the chief minister said, adding, it will be questioned in the court, and that he will battle it out legally.

Later speaking to reporters after the special Cabinet meeting, the chief minister said that the Cabinet has condemned the Governor's decision to sanction prosecution against him as 'illegal and anti-Constitution'.

"The Governor has functioned as the representative of the central government and the Cabinet condemned it," he said.

"Tell me why I should resign. According to me the Governor has to resign, because he acted like a puppet in the hands of the Government of India....Tell me, what is the offence that I have committed?" he questioned.

Congress President M Mallikarjun Kharge said 'BJP-appointed' Governors are creating trouble for non-BJP-ruled States.

He, however, maintained that he had to see why Gehlot granted permission to prosecute Siddaramaiah.

Congress workers and supporters of Siddaramaiah staged protests in Bengaluru, Mysuru, Mandya and several other parts of the state against the Governor's move.

In Bengaluru, a massive protest was organised by Congress workers and members of 'Karnataka Pradesh Kurubara Sangha' demanding removal of the Governor.

Raising anti-Gehlot slogans, they burnt his effigies and carried placards saying 'Remove Governor, Save State'.

Several of Siddaramaiah's cabinet colleagues jumped in his defence, as they targeted the Governor and demanded his 'call back'.

The opposition BJP, which has been agitating in the State for weeks targeting Siddaramaiah on the issue, on Saturday reiterated its demand for his resignation, with its state president B Y Vijayendra saying it would allow a transparent and unbiased investigation.

Granting sanction, the Governor said it is very necessary to conduct a neutral, objective, and non-partisan investigation, adding that he is prima facie 'satisfied' that the allegations and the supporting materials disclose commission of offences.

Gehlot also termed as 'irrational' the decision taken by the Council of Ministers advising him to withdraw his show-cause notice to the chief minister and to reject the application seeking prosecution sanction.

Based on a petition filed by Abraham, the Governor had issued a 'show-cause notice' on July 26 directing the chief minister to submit his reply to the allegations against him within seven days as to why permission for prosecution should not be granted against him.

The Karnataka government had on August one 'strongly advised' the Governor to withdraw his 'show-cause notice' to the chief minister and alleged 'gross misuse of the Constitutional Office' of the Governor.

The Congress government on July 14 constituted a single member inquiry commission under former High Court Judge Justice P N Desai to probe the MUDA 'scam'.

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Governor's office has been misused: Karnataka HM

Karnataka Home Minister Parameshwara on Saturday decried that the Governor's office has been 'misused' after Thaawarchand Gehlot granted sanction to prosecute Chief Minister Siddaramaiah in connection with alternative site scam in the Mysuru Urban Development Authority.

He claimed that there was pressure from the top on Governor Gehlot, which is now proved.

Addressing reporters in Bengaluru, Parameshwara said, "It is clear that there is pressure from the top. There was no clear information that the CM had given any direction or even given oral instruction."

Yet, Siddaramaiah was served a show-cause notice.

"We had categorically explained with minute details following the governor's show-cause notice, how he (CM) has been framed... even if the Governor grants permission then we naturally feel that there was a pressure from the top," he alleged.

"We have been saying this from the beginning that the office of the Governor has been misused. Now it's proved."

The minister said the CM will fight it legally.

"We have to see how the permission to prosecute Chief Minister Siddaramaiah was given. We have already said we would fight it legally," he added.

Parameshwara further said Siddaramaiah will discuss with the legal team to decide the future course of action.

He said the party had earlier believed that the permission would not be granted after the cabinet gave a detailed explanation.