Three housing officials -- including deputy head of the Wodong District housing bureau in Nanyang City, Wang Hesheng -- were given disciplinary warnings over dereliction of duty, the Nanyang City government said today.
Police have detained five suspects and are pursuing more, state-run Xinhua news agency reported.
To expedite demolition work, Yi'an, a local construction company, recruited a man, Liu, to head the demolition project.
It is alleged that Liu asked a HIV/AIDS patient identified as Cui to organise a team of fellow patients to form a "demolition team".
Also Read
The demolition team even brandished their AIDS identity cards in an attempt to intimidate residents.
A photograph of a piece of graffiti read: "AIDS demolition team" surfaced on Chinese social media, triggering public outcry.
The slogan was reportedly found written in a community slated for demolition under a government plan.
Some residents left out of fear, one local said.
The province of Henan was once known for having a high number of people living with HIV/AIDS, many of whom were infected as a result of selling their blood to illegal "blood gangs".