The 575 kanals of land was sold by the Evacuee Trust Property Board, the body that administers the shrines and properties of Pakistan's minority communities.
The sale had triggered protests in the Indian parliament last year.
The probe by the federal ministry for minority affairs revealed that the land belonged to gurdwaras and could not be sold under The Sikh Gurdawara Act of 1925.
The inquiry also revealed that the land was sold at rates lower than those prevailing in the market.
The findings of the inquiry are being kept secret as the "confirmation of massive irregularities in the questionable deal... might land certain top guns of the ETPB in big trouble", The News daily reported.
The probe was launched after the Indian government sent a letter dated December 29, 2009 in which it asked its Pakistani counterpart to investigate the sale of land attached to gurdwaras and other Sikh shrines.
The newspaper's report contended that the inquiry resulted in ETPB chairman Asif Hashmi's "dramatic" decision to
announce his resignation during an official function in Lahore on Monday.
The daily quoted its sources as saying that Hashmi was aware of the findings of the inquiry, which had been sent to prime minister Yousuf Raza Gilani for further action.
The inquiry revealed that the land sold to the army-run Defence Housing Authority belonged to ETPB for the past century and was attached to Sikh gurdwaras and trusts.
The current management of the ETPB, led by chairman Hashmi, decided to enter into a "dubious agreement" with the Defence Housing Authority after violating all "relevant rules and laws", the report said.
"The intricacies have provided a lot of room to the Indian government because of association of Defence Housing Authority with our armed forces and this was used to defame Pakistan, present government and our armed forces. That was why the deal between Defence Housing Authority and ETPB was highlighted in the media all over the world," the inquiry report said.
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With thanks : source : PTI & DNA India
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