The state government, on Wednesday, announced an inquiry by the Mumbai crime branch into the alleged illegal transfer of tenements meant for workers of cloth market in Kandivli.
Of the 2,150 tenements meant for workers, 300 have been transferred illegally.
The government admitted that huge irregularities were committed by a deputy commissioner of the labour commission, days before he retired.
Eknath Khadse, leader of Opposition in the state Assembly, and Sudhir Mungantiwar (BJP) compared the scam to that of the Adarsh housing society.
Mungantiwar said that the transfer of the tenements or sub-lease was not permitted under the rule. He said that the police would investigate the irregularities.
Speaker Dilip Walse-Patil directed the state government to conduct an inquiry, as the scam was very serious in nature.