The CBI told the court that it was likely to add section 409 (criminal breach of trust by public servant) and section 467 (forgery of valuable security and wills) of the Indian Penal Code (IPC) against the accused, who could get life imprisonment if convicted under these sections.
The CBI was filing its reply after seven accused arrested in connection with the case - IAS officer Pradeep Vyas, former deputy secretary in Urban Development Department P V Deshmukh, Brigadier (retd) M M Wanchoo, retired Defence Estates Officer R C Thakur, Major General (Retd) A R Kumar, Maj Gen (Retd) T K Kaul and former MLC Kanhaiyyalal Gidwani - filed a bail application.
"If the sections are applied, the maximum punishment would be life imprisonment and the time limit of filing a charge sheet is 90 days," special public prosecutor Bharat Badami said.
CBI had collected samples of the signature of the accused, which had been sent for analysis for further investigation, Badami said.
He further told the court that the CBI was collecting evidence to prove that the accused had committed the offence under sections 409 and 467.
In their bail application, the accused had said that they were entitled for bail by default as the CBI had not filed the charge sheet in the stipulated period of 60 days.
The court is likely to pass an order on their bail application tomorrow.
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The scam pertains to alleged irregularities in construction and allotment of apartments in the 32-storeyed highrise, originally meant for families of Kargil war heroes, in the upmarket Colaba area in south Mumbai.
The FIR had also named the former Maharashtra chief minister Ashok Chavan, who had to step down following allegations that he had recommended allotment of 40 per cent flats in the housing society and that his relatives had got flats in the building as quid-pro-quo for extending favours to the society.