The European Commission has said it will not be investigating whether state aid rules were breached by the transfer of public land to the db Group below market rates.

The EU executive was asked, separately, by the Democratic Party (PD) and by PN MEP candidate Michael Briguglio to investigate the transfer of the 24,000 square metres former Institute of Tourism Studies site, valued at €204 million, for just €15 million.

In replies sent on Friday, the Commission said it could not treat the two requests as a formal complaint because they did not come from “interested parties” whose interests were disadvantaged by the measure, such as competitors or trade associations.

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“Consequently, the Commission will register that information as market information and not as a formal complaint. Please note that in absence of a formal complaint, DG Competition does not intend to investigate this issue on an ex-officio basis,” the Commission said in both replies.

The Commission had already refused, in October, a request by the European Greens to investigate the deal, again noting the lack of a formal complaint.

It said at the time that it “was not in a position to verify” whether state aid rules had been breached, and that “what ultimately matters is whether the public authority acted in its capacity as private seller in concluding the transaction and that the land was sold to the buyer at market price”.

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The ITS site was transferred to db Group for the construction of the controversial City Centre mega-development, including a 37-storey residential tower and 17-storey Hard Rock Hotel.

The project was approved by the Planning Authority in September despite an unprecedented number of objections from Pembroke residents, local councils and environmental groups.

Further controversy ensued when it emerged that the PA had paid for a private jet to fly a board member from and back to Sicily to be present for the vote.