Kumaraswamy alleges ₹3 lakh crore NICE scam, questions Shivakumar's asset rise

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Kumaraswamy alleges ₹3 lakh crore NICE scam, questions Shivakumar's asset rise

Synopsis

Union Minister Kumaraswamy has opened what he calls a multi-part expose on the NICE road project, alleging irregularities worth over ₹3 lakh crore and questioning how CM Shivakumar's declared assets grew 350-fold in two decades. With more documents promised and a public movement threatened, this political clash in Karnataka is set to escalate sharply — and the origins of the BMIC project in his own father's tenure add a complicating wrinkle.

Key Takeaways

Kumaraswamy on 29 September 2026 alleged the NICE/BMIC project is a scam worth more than ₹3 lakh crore .
He questioned Karnataka CM D.K.
Shivakumar's asset growth from ₹4 crore in 2003 to ₹1,413 crore in 2023 and demanded his resignation.
Kumaraswamy alleged the project's alignment was changed in 2002 — when Shivakumar was Urban Development Minister — without Cabinet approval, expanding land allocated for the toll road to 9,468 acres .
He alleged former Congress MP D.K.
Suresh purchased land notified for the NICE project in 1997 , later obtaining an NOC before transferring it to Shobha Developers .
The BMIC project was originally initiated in 1995 under former PM H.D.
Deve Gowda , Kumaraswamy's father.
Kumaraswamy announced forthcoming Parts 2 and 3 of his expose and threatened a public movement and legal action if the state government does not act.

Union Minister for Heavy Industries and Steel H.D. Kumaraswamy on Tuesday, 29 September 2026, levelled sweeping allegations against Karnataka Chief Minister D.K. Shivakumar, claiming the Bangalore-Mysore Infrastructure Corridor (BMIC) — popularly known as the NICE project — was a scam worth more than ₹3 lakh crore. Kumaraswamy also questioned how Shivakumar's declared assets had grown from ₹4 crore in 2003 to ₹1,413 crore in 2023, demanding the Chief Minister resign if the state government lacked the will to act on the alleged irregularities.

What the Allegations Cover

Kumaraswamy alleged that the irregularities in the NICE project were larger in scale than the 2G spectrum scam and announced he would release further documentary evidence in subsequent parts of his expose. He claimed the project — an infrastructure initiative to improve road connectivity between Bengaluru and Mysuru through a tolled expressway and associated townships, implemented by Nandi Infrastructure Corridor Enterprises (NICE) and promoted by Ashok Kheny — had been systematically misused.

According to Kumaraswamy, the 1997 Framework Agreement had earmarked 6,999 acres for the road project. He alleged that in 2002, when Shivakumar served as Urban Development Minister and chairman of the Bangalore-Mysore Infrastructure Corridor Planning Authority (BMICPA), the project alignment was changed without proper authorisation, allegedly paving the way for large-scale irregularities. He further claimed that land earmarked for townships was reduced without Cabinet approval, while land allocated for the toll road was increased to 9,468 acres, and that 10 to 12 lakes were destroyed in the process.

Land Acquisition and NOC Irregularities Alleged

Kumaraswamy raised questions over the purchase of land by Shivakumar's brother, former Congress MP D.K. Suresh, in 2004 — despite the land having been notified for the NICE project as far back as 1997. He alleged that a No-Objection Certificate (NOC) was subsequently obtained from the NICE company for the same land before it was transferred to Shobha Developers, and asked under what circumstances that NOC was issued.

In a further allegation, Kumaraswamy claimed that seven acres belonging to Siddaganga Mutt had been acquired for the project, of which only one acre was used for the road, with the remainder not returned despite requests for its use for an orphanage. He also alleged that the NICE company had issued NOCs to more than 420 individuals, including, he claimed, a person employed as a cook at the residence of one of the parties concerned.

Kumaraswamy's Charges Against NICE Promoter

Kumaraswamy alleged that NICE promoter Ashok Kheny had not invested personal funds in the project and had instead raised loans from banks by mortgaging government land. He also cited judicial observations which, according to him, raised serious questions about the government's handling of the project. The minister appealed to the public not to pay toll on the NICE Road, alleging an attempt to acquire and appropriate 1,25,000 acres of land through notifications.

Notably, the BMIC project was originally initiated in 1995 during the tenure of former Prime Minister H.D. Deve Gowda — Kumaraswamy's father — a fact that critics may use to question the minister's selective framing of the controversy's origins. Kumaraswamy acknowledged this lineage but alleged that the project's original objectives were subsequently altered, turning it into a major land-related controversy that hurt farmers' interests.

Political Escalation and What Comes Next

Challenging the state government to an open debate on the steps of Vidhana Soudha, Kumaraswamy said he would personally honour Shivakumar if concrete action was taken — but would otherwise launch a public movement and pursue legal action. He announced that Parts 2 and 3 of his documentary expose are forthcoming.

It must be noted that the allegations and documents cited by Kumaraswamy would require examination by the relevant authorities to establish the facts. No formal investigation has been announced by the Karnataka government in response to Tuesday's disclosures. The Congress-led state government's formal response is awaited, and the political standoff between the Janata Dal (Secular)-Bharatiya Janata Party (BJP) combine and the ruling Indian National Congress in Karnataka is expected to intensify in the coming days.

Point of View

A fact the Karnataka Congress will exploit to reframe the narrative as a family dispute over a decade-old project. The core allegations — altered alignments, unauthorised NOCs, and disproportionate asset growth — are serious enough to warrant independent scrutiny, but their credibility hinges on whether the documents Kumaraswamy cites withstand examination by courts or the Comptroller and Auditor General. The demand for Shivakumar's resignation before any formal inquiry is completed reads more as political pressure than procedural accountability. If Parts 2 and 3 of the expose add verifiable new material, this could become a sustained governance controversy; if they do not, it risks being absorbed into Karnataka's pre-election noise.
NationPress
29 Sept 2026

Frequently Asked Questions

What is the NICE project that Kumaraswamy has alleged is a scam?
The NICE project refers to the Bangalore-Mysore Infrastructure Corridor (BMIC), an infrastructure initiative aimed at improving road connectivity between Bengaluru and Mysuru through a tolled expressway and associated townships. It is implemented by Nandi Infrastructure Corridor Enterprises (NICE), promoted by Ashok Kheny, and was originally initiated in 1995. Kumaraswamy alleges it became a vehicle for large-scale land and financial irregularities worth over ₹3 lakh crore.
What specific allegations has Kumaraswamy made against CM D.K. Shivakumar?
Kumaraswamy has alleged that Shivakumar, as Urban Development Minister in 2002 and chairman of the BMICPA, changed the project alignment without Cabinet approval, increasing land for the toll road to 9,468 acres. He has also questioned the growth of Shivakumar's declared assets from ₹4 crore in 2003 to ₹1,413 crore in 2023 and called for his resignation if the state government does not act on the alleged irregularities.
What is the allegation involving D.K. Suresh and the NICE land?
Kumaraswamy has alleged that D.K. Suresh, former Congress MP and Shivakumar's brother, purchased land in 2004 that had been notified for the NICE project since 1997. He further alleged that a No-Objection Certificate was obtained from NICE for that land, which was subsequently transferred to Shobha Developers, and questioned the circumstances under which the NOC was issued.
Why is the origin of the BMIC project significant in this controversy?
The BMIC project was initiated in 1995 during the tenure of former Prime Minister H.D. Deve Gowda, who is Kumaraswamy's father. Kumaraswamy acknowledges this but claims the project's original objectives were subsequently altered. Critics argue this complicates his framing of the issue and opens him to charges of selective accountability.
What action is Kumaraswamy threatening if the Karnataka government does not act?
Kumaraswamy has announced plans to launch a public movement and pursue legal action if the state government fails to investigate the alleged irregularities. He also announced that Parts 2 and 3 of his documentary expose are forthcoming and challenged the government to an open debate on the steps of Vidhana Soudha in Bengaluru.
Nation Press
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