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Milan Mayor placed under investigation for property planning probe

Three sources confirmed on Thursday that the mayor of Milan was under investigation. The probe is looking into the deals which have fueled the real estate boom seen in Italy's financial center over the past 10 years.

Beppe Sala's investigation comes after the prosecution on Wednesday demanded the arrest of four other people, including the director of Coima real estate and the councillor of Milan for urban planning.

Three sources familiar with the case claim that Mayor Sala, the leader of a coalition of centre-left in the city is one of dozens of individuals under investigation.

He is accused concealing a potential conflict of interest in relation to the appointment of the chairman of a local commission that issues building permits. He was also accused of being among those who put the pressure on the same chairman to allow a city building project to be approved.

A request for comment was not responded to by his spokesperson.

Three Italian newspapers were the first to report on the investigation into the mayor.

Sala, in a Thursday comment by the Corriere della Sera paper, denied any wrongdoing. He said it was "shocking" that the mayor learned of his investigation from a newspaper and not from the prosecutor. It's unacceptable".

The scandal could embarrass Milan, as it prepares to host the Winter Olympics in 2026 next February.

Sala has been called to resign by the centre-right parties that govern at national levels under Prime Minister Giorgia Melons.

Two sources stated that investigations into the position of the mayor are in the early stages, and that they are not nearing a conclusion. They expressed regret that this news was made public.

In 2015, the Milan property market started to flourish, as the Expo international exhibition transformed the city, making it a popular destination for developers both from Italy and abroad. It also reshaped its skyline. Local residents' complaints about the rapid increase in multi-storey building construction slowed down construction.

Documents filed in court show that investigations into the biggest urban planning projects of Milan "have revealed a system '...whose aim is to facilitate issuance of building permits illegally and to conduct highly speculative transactions". (Elvira Pollina contributed additional reporting, Keith Weir edited by Sharon Singleton and Sharon Singleton.)

(source: Reuters)