The locals alleged today that the encounter was fake.
A commission headed by Justice V K Agrawal, which is already probing the encounter with Maoists at Sarkeguda in Bijpaur district on June 28-29, 2012, will conduct inquiry into this incident too.
The decision was taken at a meeting of senior officials, chaired by Chief Minister Raman Singh, an official statement said.
The government also announced compensation of Rs 5 lakh each to the kin of the villagers who were killed.
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A senior police official claimed that one of the killed men was identified as Karam Masa (27), a naxal, who was active in the region for the past several years.
Other deceased were identified as Karam Pandu, Karam Guddu, Karam Joga, Karam Somlu, Karam Badru, Punem Sonu and Punem Lakh, Bijapur Collector Mohammad Kaiser Abdul Haq told PTI over phone.
A group of women from the tribal-dominated village protested at Gangalur police station alleging that the encounter was fake, and police had killed their family members who were innocent.