A ministerial committee in Saud Arabia has cancelled a deal for land worth SR600 million ($160 million) because of alleged irregularities, said a report.

The action comes following a probe by the panel comprising members of the ministries of interior, municipal and rural affairs and justice into the sale of the 22-million-sq-m piece of land, reported Arab News.

The Justice Ministry is now looking into the case involving a businessman who bought the land at a reduced price and members of the land evaluation committee that had valued it in Al Ghawlaa, north of Jeddah.

The probe was launched after a complaint by some residents in the area who accused the businessman of illegally taking possession of their land, the report stated.

On enquiry, the committee members found that the deed was incorrect and referred it to the Justice Ministry.

The committee also pointed out at the low valuation of the land by the land evaluation committee in Jeddah.