The Supreme Court on Friday asked the central government to take over the land and 30-story building of Adarsh Society in Mumbai, but not to demolish it as ordered by the Bombay High Court in April.
The stay order will last till the Supreme Court finally disposes of the appeals of the society and some of the flat owners. The court also issued notice to the authorities involved.
The military estate officer will take charge of the building and the high court registrar will supervise the process which should be completed by August 5.
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Solicitor General Ranjit Kumar assured the bench consisting of Justice J Chelameswar and Justice Abhay Sapre that the government will see that the building will not be damaged.
The high rise residential building was originally meant to house families of Kargil martyrs but the flats in the 30-floor building were doled out to politicians and top retired generals.
CBI named them and the high court ordered its demolition, though it granted three months to appeal to the Supreme Court.
The high court had asked the government to take civil and criminal action against those who grabbed the posh flats.
The scam broke out in 2010 and led to the resignation of Congress chief minister Ashok Chavan, who alleged got flats in the name of his relatives.
The governor has sanctioned his prosecution following the report of a judicial commission.
It had found several illegal allotments and sale by proxies and 13 persons have been charge-sheeted after probes by income tax authorities and the Enforcement Directorate.