"A criminal case has been opened over the large scale embezzlement of 16 hectare land plots set aside for the construction of diplomatic missions," press officer of the Investigation Committee Vladimir Markin told state-run Rossiya 24 news channel.
He said the plots of land in west Moscow allocated to the diplomatic missions of India, Cuba and China under the inter-governmental agreements concluded by the Soviet government in 1977-1984 were illegally sold off after Moscow city officials issued unauthorised privatisation contracts.
Meanwhile, Moscow's new pro-Kremlin mayor Sergei Sobyanin has ordered that his predecessor's decision to allocate the land to companies affiliated to Baturina's Inteco' construction empire be revoked.
The issue of plot for building a residential complex for the Indian embassy was taken up at various levels by New Delhi, including by Prime Minister Manmohan Singh at the last summit meeting with President Dmitry Medvedev in Moscow in 2009.
Markin of Investigation Committee underscored that the role of individual officials would be established in land scam and proper action will be taken against them under the criminal code.
In June, on the personal order of Medvedev, the Foreign Ministry had lodged a formal complaint with the Prosecutor General against Baturina, who claimed that she got the possession of the land strictly in accordance with laws and produced several rulings of arbitration court to prove her claim.
The whole issue gathered momentum after the Kremlin launched a media smear campaign against Baturina's husband, Moscow's longest serving powerful mayor Yuri Luzhkov in September and his dismissal by President Medvedev for 'loss of trust' and appointment of Putin-ally Sobyanin as the new mayor loyal to the Kremlin.