The police have registered an FIR against several people involved in the 2016 scam under Section 420 (cheating) of the Indian Penal Code and other relevant sections and the Anti-Corruption Act.
The police had earlier arrested some people, including the builder, in the case, the official said. The accused had allegedly obtained benefits under the ULC scheme by showing the residential plot as agricultural land.
The police have arrested Bharat Kamble (56), a junior drafter working in the Assistant Director, Town Planning Office, Palghar, Satyavan Dhangwe (54), a retired assistant town planner from Thane and Chandrashekhar Limaye (55), an assistant to the architect, he said.
Police are on the lookout for MBMC city planner Dilip Ghiware, the official said.