Shimla, April 21 -- For the first time, the Himachal Pradesh government has acknowledged potential benami (proxy) transactions in the Chester Hills project in Solan, aimed at circumventing Section 118 of the HP Tenancy and Land Reforms Act, 1972. Revenue minister Jagat Singh Negi said on Monday that preliminary investigations suggest violations involving about 150 bighas of land valued at up to Rs.300 crore, though he cautioned that definitive conclusions must await the final report. The Chester Hills project in Solan is currently embroiled in a high-profile controversy and had led to a bureaucratic tussle with allegations of a multi-crore "land scam" involving 275 bighas. A prior inquiry by the Solan sub-divisional magistrate (SDM) concluded that the Chester Hills-2 and Chester Hills-4 projects were deliberately structured to bypass Section 118, which prohibits non-agriculturists from owning agricultural land without state sanction. The SDM said that the individuals listed as owners lacked the financial means to purchase the 275 bighas involved, hinting at benami deals and recommending a probe by the Enforcement Directorate or income tax department. There are now allegations that chief secretary (CS) Sanjay Gupta stalled action on this report. However, Gupta, while claiming to be innocent, had said they are part of an "orchestrated conspiracy" by a rival lobby of officers to tarnish his reputation. Speaking to HT, Negi highlighted "clear procedural concerns" in the initial inquiry. He questioned the role of senior bureaucrats, asserting that the then acting CS Gupta lacked the authority to unilaterally frame charges. Negi confirmed he overruled those orders to ensure a commission of inquiry proceeds legally. "If the local individual in whose name the land was acquired lacks the income to purchase such a tract, it constitutes money laundering," Negi said, adding that Solan deputy commissioner Manmohan Sharma's investigation is nearing completion. The probe is also scrutinising orders issued by the CS to halt previous investigations. Gupta faces allegations of purchasing land in the area himself; while a police complaint has been lodged, no formal case is registered. Negi maintained that RERA and the town and country planning (TCP) department are conducting separate inquiries into the matter. Simultaneously, the HP Real Estate Regulatory Authority (RERA) has imposed a Rs.70 lakh fine on the project promoters for serious irregularities. RERA's investigation found the developers failed to maintain proper accounts and expenditure records as required under Section 4(2)(l)(D). RERA observed that the listed land purchasers appeared to be "nominal or front owners,"noting that such extensive acquisitions were "highly improbable" given their modest declared incomes, reinforcing suspicions of benami arrangements and unaccounted financial inflows....