Three Northern Territory residents have been arrested and charged with fraud and one with corruption over an alleged multi-million-dollar Defence contract scheme.

Australian Federal Police (AFP) investigators raided homes and businesses across Darwin on Friday after they received a tip-off about a crime from the Department of Defence.

The AFP alleges a 48-year-old Commonwealth Defence employee, his 40-year-old wife, and a 41-year-old male director of a local construction firm had conspired to channel nearly $71 million worth of Defence building contracts to their own company.

During the raids, investigators seized $30,000 in cash, documents, electronic devices, jewellery, and a small quantity of illicit drugs, which the AFP suspects to be cocaine.

In a statement, the AFP alleged that t

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