"One thing is final that the NoC is cancelled and an investigation is going on," Defence Minister A K Antony said on the sidelines of an award function here of the Ordnance Factories and PSUs under the Defence Ministry.
The Minister was asked as to what steps have been taken by the Ministry in the Viper Islands case where local officials allegedly in collusion with armed forces' officials gave an NoC to an Indo-Malaysian company.
Objections have been raised over the project on security grounds as the Viper Island is situated very close to Navy and Coast Guard harbour and other crucial defence establishments.
The Andaman administration was planning to build a 50 berth Yacht Marina, which was supposed to be developed by Indo-Malaysian company for promoting tourism in the region.
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Local BJP MP Bishnupada Ray had also written to Prime Minister Manmohan Singh last September demanding an independent inquiry into the alleged transfer of land to private companies at the rate of Rs 1 per annum.
The right of issuing NOCs has been taken away from the local formation commanders and for every such case, the final decision is taken by the Defence Ministry.