According to the documents accessed under the Right to Information by activist Ajay Dubey, Kohli Edutech Private Limited, headed by former Mizoram Governor Amolak Rattan Kohli, had allegedly purchased the land by flouting official norms.
Kohli, however, has denied the charges.
"I have been a constitutional head and I would be the last person to be associated with anything that is illegal especially when we are seeking to set up an education city," he said.
The documents said the land was purchased from Scheduled Castes and Scheduled Tribes people living below the poverty line, and without getting prior permission from the district collector concerned.
Confirming the irregularities, Madhya Pradesh Revenue Minister Karan Singh Verma said, "Officials have been told to probe the case. I will be able to tell more only when I have the report."
Sources said the role of some senior government officials, including two former Collectors, was also being looked to ascertain whether they had allegedly favoured the trust in executing the deal.
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A detailed report is sought from Bhopal Commissioner in this regard, they said.
According to officials, the land measuring 1,120 acres was purchased with a proposal to develop education city including shopping mall, multiplexes and golf course among others in violation of the agreement.
"We have followed every point in letter and spirit of the Memorandum of Understanding (MoU) signed in 2007 between the company and the MP Government