The Bombay High Court on Wednesday allowed the Ministry of Defence to intervene in the PILs in the Adarsh scam and asked it to file within two weeks its response to Maharashtra government's stand that CBI cannot probe it.

Counsel for MoD Kevic Setalvad opposed the state government's claim that the Adarsh land belonged to it and that the CBI cannot probe the scam.

On his pleading, the Court allowed the MoD to intervene in the matter.

After hearing the arguments, Justice S A Bobade and Justice Mridula Bhatkar directed the MoD to file an affidavit within two weeks and adjourned the hearing on the PILs till July 18.

The Court allowed the MoD access to all documents to enable it to file its reply.

Counsels for Adarsh Society and state government Shekhar Naphade and A Y Sakhare opposed MoD lawyer's plea to intervene in the matter, saying the Adarsh Inquiry Commission had already ruled that the land in question belonged to the state.

The Maharashtra government and Adarsh Society have contested the CBI's jurisdiction to probe the alleged scam on the ground that neither the state government nor the High Court had handed over the investigation to the Central agency, as required under the law.

The judges said the court would have to examine whether any order was passed earlier asking the CBI to probe the Adarsh scam.

The Court was hearing PILs filed by social activists Simpreet Singh and Pravin Wategaonkar seeking monitoring of the probe by the High Court and invoking provisions of Prevention of Money Laundering Act (PMLA) in the case.

Counsel for Maharashtra government A Y Sakhare submitted to the Court an affidavit which affirmed that the state had never asked the CBI to probe the Adarsh case.

The affidavit said the state had not made any request under the Delhi Special Police Establishment Act, 1946, to CBI to investigate the scam. The agency derives its powers from this Act to investigate cases.

The affidavit filed by Ruprao Deshmukh, Joint Secretary in the Home department, however, said on CBI's specific request the state had made available records and extended all cooperation to the premier investigating agency.

The affidavit said the Adarsh Inquiry Commission appointed by the state to probe alleged irregularities in construction of the building in upscale Colaba had submitted its interim report in April. The state will take appropriate action after receiving the final report of the panel, the affidavit added.

The Panel had said in its interim report that the Adarsh land belonged to the state Government.

The court took on record the affidavit filed by the state and asked MoD to submit its reply within two weeks.

The agency had registered a case in the scam on January 29 last year under IPC sections, including criminal conspiracy, cheating, forgery and showing forged document as genuine, besides sections pertaining to Prevention of Corruption Act.

Former Chief Minister Ashok Chavan, Congress leader K L Gidwani, top-ranking retired army officers Lt Gen P K Rampal, Major Generals A R Kumar and T K Kaul, retired brigadiers R C Sharma and M M Wanchoo are among the accused.

The FIR also names as accused Subash Lala, the then principal secretary to Chief Minister, former principal secretary of the Urban Development Department Ramanand Tiwari, former municipal commissioner and IAS officer Jairaj Phatak and fellow IAS colleague and former Mumbai collector Pradeep Vyas.

The late mother-in-law and sister-in-law of Chavan had flats in the society. Chavan was Revenue Minister between 2001-2003 and had dealt with files pertaining to the ownership of land. He is alleged to have recommended allotment of 40 per cent flats to civilians in the society which was said to be meant for Kargil widows and war heroes.