The probe against former roads and buildings minister GM Saroori was ordered by a division bench of the Commission comprising chairman Justice (retd) YP Nargotra and Justice (retd) Hakim Imtiyaz Hussain.
After hearing complainant Saquib Mushtaq, the commission also issued a notice to Saroori, who is the Congress MLA from Inderwal in Jammu region, asking him to respond to the allegations within six weeks.
The case has been listed for hearing on July 8.
"The complainant alleges that during the period the respondent was holding the said portfolio, about 2,000 works were allotted by (his) department without tenders, and that the same being not in accordance with law has caused huge loss to the state exchequer," the order read.
The bench noted that although Saroori has denied the above charges in a communication to the Commission in November last year, "we are not inclined to absolve him of his inaction in the matter (as), being the minister-in-charge... He was bound to keep a vigil and control on the working of the department".