He said the CBI has been entrusted with the inquiry to get the matter thoroughly investigated and responsibilities fixed.
Adarsh Cooperative Housing Society (ACHS) had sought land from Maharashtra government for the welfare of serving and retire personnel. "Prima facie there have been irregularities," Antony said in a written reply to questions.
"Some issues of concern in this regard include issue of NOC by the Army to inter alia alienate the land in its possession in favour of the ACHS; by-passing the Coastal Regulation Zone and disregard to security concerns of the defence services," he added.
The Minister said the Society had also deviated from its commitment for defence forces welfare and included civilians as members of the Society.
He said 102 people were alloted flats in the society, of which 37 were serving officers.
The society has constructed a multi-storeyed building on a land measuring approx 3837.57 sq metres in Colaba, Mumbai.
The scam came to light after Western Naval Commander Admiral Sanjeev Bhasin shot off a letter to the Army headquarters and the Defence Ministry seeking action against the building for posing a security threat to military installations.
The land was within the security perimeter of the naval base in the upscale Colaba region of south Mumbai, Admiral Bhasin had noted in his letter.
It also came to light that former Army Chiefs General Deepak Kapoor and General N C Vij, apart from former Navy Chief Admiral Madhavendra Singh too had flats allotted in their name in the housing society that was meant for families of Kargil martyrs.