The decision was taken at the Cabinet meeting chaired by Chief Minister N Chandrababu Naidu.
"In other decisions, the Cabinet decided to conduct a vigilance inquiry into the alleged corruption in poor people housing in the state" Labour Minister K Atchannaidu told reporters.
"Approximately, Rs 5,500 crores has been looted in 10 years (during 2004-2014) in housing," he said, adding the allegedly looted money would be recovered under the revenue recovery act.
Recalling that the government decided to implement pre-fabricated method for construction of 6,500 houses in areas hit by hudhud cyclone in Visakhapatnam region last year, he said the same model would be adopted across the state if it is found to be good.
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The cabinet also approved adopting a uniformal e-mail policy of using government email service at all levels, Atchannaidu said.
Highlighting that the state government is making massive arrangements for organising the 'Godavari Maha Pushkaram' (the ritual of sacred bath in river, held once in 12 years) beginning July 14, he said prominent personalities from various walks of life would be invited for the event.
The government has made arrangements even if two lakh people visit on a single day. The 'Pushkaram' is expected to attract lakhs of people from across the state, he said.