Barwani collector Tejaswi S Naik on Tuesday reached Malkatar village in Barwani district and ordered removal of materials stored in a government school building by a dam contractor.
The development comes a day after Hindustan Times first reported about the matter.
The new middle school building was constructed three years ago, but a former sarpanch rented it out to the contractor, local residents said.
The existing school building is in a dilapidated condition. Teachers have been forced to hold classes in a tiny 60-square-feet room for the last three years, they said, adding that the contractor is using all his influence to stay put.
The collector ordered seizure of material, machines and instruments stored in the building besides lodging of an FIR against the contractor.
He also ordered a probe into how a government school was handed over to a contractor for Rs 4,000 per month. He said action would be taken against the former sarpanch and the panchayat secretary of the village.
Bharat Jamsingh, a villager, said he never expected such a prompt action from the district authorities and he was happy that the building was vacated.
Former sarpanch Vinod Parmar, who rented out the new school building to the contractor, has said he took the step because the building was located 500 metres away from the village, and on a steep incline – making access difficult for students.
Dara Singh Solanki, a resident of Pansemal, alleged that the contractor every time boasted that he was a relative of a Gwalior-based union minister.
Malkatar, situated on the Madhya Pradesh-Maharashtra border, has a population of 700.