The Chalakkudy Municipality in Thrissur has decided to cancel the licence of D Cinemas, the multiplex owned by actor Dileep.

The decision was taken unanimously during the emergency meeting following allegations of land encroachment and violations of building norms. The local body also decided to suspend the license till the Vigilance Department completed its investigation on the land acquisition and construction. “There were several irregularities in the construction of the complex,” the local body said.

Notice would soon be issued to D Cinemas to shut down.

The Thrissur Vigilance Court ordered an inquiry into the allegations of land encroachment on July 19, after hearing a public interest litigation, which alleged that the actor had indulged in land encroachment to build the theatre multiplex .The court has set September 13 as deadline for submission of the report.

Following orders from Thrissur Collector Dr. A. Kaushikan, Revenue officials on Thursday conducted a survey on the land under contention. A team, comprising 10 officials carried out the survey.

The team said no encroachment had been made. (The allegation against the actor was that he had encroached a poromboke land along the Periyar river at Kunnukara panchayat in Karumallor district).

The taluk surveyor had given permission for the construction without getting the sketch for the theatre which has been functioning since 2006.

Santhosh, a native of Aluva, had alleged that the land allocated to Chalakudy Sreedharamangalam Sreekrishna temple for building the dining hall that Dileep had taken to build D Cinemas.

The then Collector, M.S. Jaya, in her report gave a clean chit to the actor. Santhosh later approached the High Court that directed the Land Revenue Commissioner to submit his report.

The Commissioner’s report did not endorse the Collector’s point in the case. The file was gathering dust, till it was reopened after the actor was arrested in connection with a case related to assault on a female actor in a moving car in February.