The probe will be monitored by a retired high court judge as per the HC order.
A PIL in this regard was filed by social activist Kashinath Shetye earlier this year.
He had alleged a nexus between the police and matka operators and the involvement of politicians.
State Under Secretary (Home) Neetal Amonkar in an order issued today has notified the formation of the SIT which would be monitored by retired High Court Judge A P Lawande.
The SIT would give a monthly report of its investigation.