Chief Minister Manohar Parrikar told the House that the state government will hand over investigation to Lokayukta in the case related to Regional Plan 2011, a land use plan that had earned ire of the civil rights groups, forcing the government to scrap it in 2007.
An inquiry would also be initiated against the then town and country planning minister Atanasio Monserratte, if he is found involved, he said.
Responding to the question raised by Sankhali MLA Pramod Sawant, Parrikar said that there are clear instances of corruption in the guise of the plan.
Money had exchanged hands to approve conversions under this plan, Parrikar alleged.
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"There is a corruption angle to it and hence the government will refer it to Lokayukta," he said.
The plan, drafted by the former Congress-led government, was withdrawn within four months as it was leading to mass scale conversion of the land, Parrikar said.
The government will also initiate an inquiry by the Anti-Corruption Bureau (ACB), if there are some isolated incidents of corruption cited in the guise of this plan, he said.