Congress party politicians, bureaucrats and military officials have been accused of taking over land meant to build apartments for war widows. After the story broke in local media the government sacked the powerful chief minister of western Maharashtra state, who is a member of Congress.
The Arabian Sea-facing block with 103 apartments in an upscale Mumbai district, that is amongst the world's most expensive pieces of real estate, is also being investigated for several violation of norms, including environmental laws and land-use rules.
Apartments were sold for as little as $130,000 each, while local media estimated their value at $1.8 million each.
Since the scandal broke out, the government has effectively taken back permissions allowing owners to occupy the apartments, leading to the disconnection of water and power supply.
The CBI had begun investigating the case.