The land in question is spread over 32,182.20 square metres and is located opposite the Sanjay Gandhi National Park in suburban Borivali, he said.
A query about the land was filed before the Mumbai suburban district collectorate's office by RTI activist Anil Galgali.
The Congress-NCP government allotted the prime plot to the private company in 2014 just before it demitted office for around Rs 53.38 crore, said Galgali, citing the information provided by the collectorate's office.
Chief Minister Devendra Fadnavis said he has received a representation from the activist demanding a probe, and will look into it.
"This land could have been used for affordable housing. But, a part of the land was sold to a real estate company which is now constructing luxury apartments on it. Galgali said.
When contacted, Fadnavis told PTI, "I have received a representation and will look into it.