Bihar Governor Buta Singh on Thursday directed Chief Secretary G S Kang to look into a deal in which government land in Siwan was sold to Rashtriya Janata Dal member of Parliament Mohammad Shahabuddin at an allegedly throwaway price.
Singh said that if required, he would have an inquiry conducted and action taken against guilty officials responsible for the sale.
Shahabuddin has been charged with defrauding the state government of lakhs of rupees in the purchase.
Official sources said the Accountant General's office had raised serious objection to the manner in which Shahabuddin had managed to purchase about 110 acres of government land in the name of Islamia Trust, allegedly at a fraction of the original price.
Sources said that the AG office had sought a detailed report in this regard from the state government within a month and had asked to initiate steps to recover the money from the purchaser.
"The defrauding of lakhs of rupees in the purchase of government land came to light when AG officials audited documents, pertaining to the sale and purchase of land in Siwan district," a source said.
In the sale of land to Shahabuddin, the government had incurred a loss of Rs 75 lakh.
The land was purchased two years ago by Shahabuddin for setting up an engineering college in the district.
