In July 1943, during World War II, smuggling activity increased along Turkey's border with Iran, leading to clashes between local tribes and security forces in the Özalp district of Van province. Gendarmerie units were dispatched to the border after receiving a tip that members of the Milan tribe—some of whom lived on Iranian territory—had taken a large herd of animals. The gendarmerie failed to apprehend the alleged smugglers, who fled across the border into Iran.
In response, 40 relatives of the tribe living in Özalp were detained by authorities. A court reviewed the detentions and ordered the arrest of only 5 individuals, releasing the remaining detainees. Despite this judicial determination, 33 people were handed over to a military unit under the command of two second lieutenants for further questioning. This transfer occurred by order of Mustafa Muğlalı, the 3rd Army Commander, who had come to Özalp.
The 33 detainees were subsequently shot near the border. A report had been prepared in advance claiming that the individuals were shot while attempting to escape, though this account was disputed. One villager survived the shooting despite being injured and managed to alert relevant authorities to what had occurred. However, no results came from the applications and complaints made regarding the incident, and it was effectively covered up for several years.
The matter resurfaced in 1948 as the Democrat Party emerged as an effective opposition force in Turkish politics. A parliamentary question was submitted to the Presidency of the Grand National Assembly of Turkey, leading to an investigation against both military and civilian administrators connected to the incident. During proceedings before the General Staff Military Court, Muğlalı stated that he had personally given the order for the shootings. He was sentenced to death on March 2, 1950, a sentence later commuted to 20 years in prison due to his advanced age and other extenuating circumstances. The military supreme court subsequently overturned this decision, but Muğlalı died in prison on December 11, 1951, at age 69, before a new trial could take place.
The incident was raised again in the Grand National Assembly following a claim by the CHP that discrimination had been directed against minorities during the Istanbul pogrom; the Democrat Party responded by reviving scrutiny of the Muğlalı incident, this time implicating all members of the Assembly and the CHP who had been in office at the time, including İsmet İnönü personally. The Assembly debated the matter on February 12, 1956, and February 25, 1956. The proceedings were ultimately closed due to the statute of limitations and various amnesty laws, following a 1958 Parliamentary Investigation Commission report and further parliamentary deliberations.