The court, however, directed the agency to get the sanction for prosecution.
Later, CBI approached the Maharashtra Governor seeking the sanction which was rejected even though the agency had made a detailed submission for it.
CBI had alleged in its charge sheet that Chavan had increased the floor space index of the controversial Adarsh Society in Mumbai in exchange for two flats to his relatives.
Chavan's mother-in-law Bhagvati Sharma, sister-in-law Seema Sharma and father-in-law's brother Madanlal Sharma have flats in the society.
Chavan also asked the Society to take 40 per cent members from civilian category, when it was originally meant only for war veterans, CBI has alleged, adding that Chavan played a key role in the scam.
CBI has filed charge sheet against Chavan and 12 others for criminal conspiracy, cheating and criminal misconduct under Indian Penal Code and also under Prevention of Corruption Act.
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