The Lokayukta has already issued notices to Setty and KHB Commissioner M B Dyaberi on the case.

N S Anand, a resident of Siddlaghatta, had filed a complaint with the Lokayukta recently alleging that the KHB had cheated him by acquiring the land. Another person from Gulbarga had filed a case alleging that Krishnaiah Setty had misused his position as the Housing minister to favour his family members. Based on these complaints, Lokayukta Justice N Santosh Hegde has directed the officials to take up investigation.

The issue had rocked the recent Legislature session with the JD(S) alleging that the KHB had decided to purchase over 950 acre farm land in Chikkaballapur at Rs 45 lakh per acre for a housing project. But the then Housing minister’s brother had bought the same land at Rs 5 lakh per acre to sell it to the KHB. He had in fact sold nearly 31 acres to the KHB at Rs 45 lakh per acre.

Both the JD(S) and the Congress had demanded a probe from either the CBI or the Lokayukta. But the government rejected the demand and ordered a probe by the Chief Secretary.