Kumaraswamy alleges ₹3 lakh crore NICE scam, questions Shivakumar's asset rise
Synopsis
Key Takeaways
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.