Tawde said that Mumbai Suburban District Collector Shekhar Channe has been asked to submit his report in two months after a probe.
"Based on the findings in his report the matter will be referred to the state Criminal Investigation Department (CID) for investigation and action," Tawde told reporters here.
Terming it as a scam akin to the Transfer of Development Rights (TDR) scams in the Urban Development and Housing departments, he refuted the contention that thousands of teachers would be rendered jobless and added that on the contrary, some more teachers would have to be recruited.
"In most cases, surplus teachers of aided classrooms stayed back in aided district schools in Mumbai city and did not go to unaided private schools. However, they availed of salaries from unaided schools as well," he said.
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He said that some teachers and sources disclosed to him, the alleged involvement of some elected representatives in this scam.
Replying to queries, he assured that no teacher rendered surplus will be laid off.