Tao Xiao-xing, deputy director of Shanghai's housing management bureau, has been investigated for possible discipline violations, Xinhua News Agency reported on Thursday.
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No details were available in the report, but "discipline violations" is generally a term for corruption when it applies to an official under investigation.
Sources in Shanghai said 59-year-old Tao might be linked to land corruption related to the Park View Court project, a high-end community located in the downtown Xuhui district.
The land once belonged to the Shanghai No 4 Wireless Factory, which began developing the project with an Indonesian businessman surnamed Huang in 1993.
But a dispute of interest later broke up the partnership, and in 2006, Huang started to report problems in the project to the local government. He also provided a buyer list, including many officials, who had bought properties with big discounts up to 90 percent, Caixin Online reported.
Tao is so far the third division-level or above official in Shanghai's housing management bureau to fall from a position. The other two are Yin Guoyuan, former deputy director of the bureau, and Zhu Wenjin, former director of the bureau's land management division.