Properties and gold statues found in the home of Lt Gen Gu Junshan, former deputy head of the People's Liberation Army (PLA) general logistics department, were confiscated, media here reported.
Gu had stepped down from the post in February 2012 as an anti-corruption probe has been instituted against him.
Gu, who was once in charge of the army's infrastructure constructions, obtained huge economic interests by seeking kickbacks in the sale of land owned by the military, reports said.
"Gu's compound in downtown Puyang, which occupies nearly a hectare of land, was built to imitate the Forbidden City and dubbed the General's Residence," state-run Global Times reported.
During a search of Gu's Puyang villa a year ago, a golden statue of Mao Zedong, a golden washbasin, a golden statue of ship and boxes of Moutai were found.
Gu's alleged corruption prompted public attention toward graft in the country's military, which is considered a tricky issue due to the limited information from authorities.
In a separate scandal, an official of the Communist Party in Shaanxi province was suspended after a series of photos showing him naked in bed with a woman were posted online by a woman claiming to be his former girlfriend.
Qin Guogang, 56, deputy principal of Shaanxi Provincial Party School was suspended yesterday and investigation launched, state-run China Daily reported.
She claimed to have been beaten by Qin and his wife, her lawyer was quoted as saying by the state media.
Several Chinese officials were suspended and punished last year following a series of sex scandals.
