According to the police, the illegal diesel business is alleged to be carried out in more than 10 houses in two streets – Abeokuta and Ibadan.
Some of the owners of the well had taken the illegal act to a higher level, pumping the suspected petroleum into a storage tank for easy sales.
The Commissioner of Police, Fatai Owoseni, who was conducted around the houses said that those involved would face the wrath of the law.
“At the last count there, we have seen about 12 houses that had wells dug behind the house and the only thing that they scoop out of the wells is diesel but not water.
“It is believed that almost all the houses within that vicinity had this same thing.
“We have arrested some of the landlords and we have also asked the tenants whether they have the knowledge that they were compromising their lives and property?” he said.
The Commissioner of Police said that the landlady in one of the buildings had asked all tenants to leave to enable her handle the illegal sales of diesel.
Some of the suspects earlier arrested claimed innocent, but the police insisted that investigations would continue and that the law must take its course.
Laboratory technicians of the Nigerian National Petroleum Cooperation, were also at the area to ascertain the cause, impact and solutions.
For now, the area has been cordoned off and all occupants have been advised to vacate the environment to avoid disaster
Ilasamaja community is a densely populated area in Oshodi-Isolo Local Government Area of Lagos State.