A local procuratorate in Liaoning province has approved the arrest of two senior executives of a real estate company for allegedly taking illegal investments, xinhuanet.com reported on Monday.

Two senior executives of Xingyu Real Estate, a general manager surnamed Ma and vice-general manager surnamed Liu, in Benxi city are suspected of illegally collecting 44.96 million yuan ($7.3 million) from more than 40 people from April 2010 to February 2012, after the company failed to raise enough funds for the construction of a housing estate.

The executives promised the investors an interest rate 30 times higher than the bank rate and used the houses they were building as mortgage, the report said.

The two executives were detained at the end of 2013.

The Nanfen District People's Procuratorate in Benxi said the two men were suspected of collecting funds illegally and approved their arrests in accordance with the law.