In a statement here, Selangor Menteri Besar Abdul Khalid Ibrahim's political secretary Faekah Husin said the state has ordered the Selangor Land and Mines Department to examine the deal for any possible breach of legal procedures.
"We will not hesitate to stop them, be it a title transfer or pending transaction.
"The state government view these transactions seriously as it involves public money from the retirement fund of servicemen," she said in the statement.
The Defence Ministry's Lembaga Tabung Angkatan Tentera (LTAT), through its investment arm Bousted Holdings Berhad, had last Thursday announced plans to acquire the 200-acre land from Selangor Wanita Umno chief Senator Datuk Raja Ropiaah Abdullah's firm Awan Megah Sdn Bhd for RM130 million.
On top of the land purchase, the fund will also buy Deepak's firm Astacanggih Sdn Bhd for RM30 million, which opposition lawmakers described yesterday as "outright bribery" and a move meant to silence the businessman from spewing more controversial revelations against the government.
On the same day, Deepak withdrew his lawsuit against Putrajaya for an alleged breach of agreement over the same land in Bukit Raja.
Faekah revealed today that early investigations confirmed that the land in question had been initially handed over to the Federal Land Commission to be used for a military camp.
She said it was suspicious how the land had later been transacted commercially despite being gazetted as military land, suggesting that this was only possible through instructions from higher-ups in the government.
"The state government will also investigate if the land was indeed later transacted to Raja Ropiaah at RM7 per square feet or RM72 million and allegations that she had sold part of it to another company at RM16 per square foot for a quick profit.
"We will go through all the documents, one by one," she said.
Deepak had earlier filed a suit against Awan Megah for criminal breach of trust in the sale of the 200-acre land and had named the firm, the Defence Ministry, government land unit Syarikat Tanah Dan Harta Sdn Bhd and Cebur Megah Development Sdn Bhd in his lawsuit.
Deepak's Astacanggih Sdn Bhd had agreed to buy three parcels of land in 2007 for RM13 million and a RM72 million bank guarantee for a land bond from Raja Ropiaah, who was awarded a RM100 million privatisation deal for the development of the defence research centre called Pusat
Pengajian Pertahanan Nasional (Puspahanas).
The land was supposed to be placed in a special purpose company called Cebur Megah as government rules does not allow land in privatised projects to be sold by the winning party. The land is still in government hands as the defence project has yet to take off.
The Selangor Wanita Umno chief had allegedly sold one parcel for RM2 million in cash and a RM16 million overdraft facility in a "joint venture" with Guppyunip Sdn Bhd, a company specialising in plasticware, prompting the carpet dealer to put a caveat on the land in Bukit Raja and lodge a police report last July.