The division bench headed by Justice Abhay Oka asked the Advocate General to consult the registry and come up with names of former judges who could be appointed to conduct the inquiry, and adjourned the hearing to next Monday.
All the allotments since the 1982 government resolution creating this quota would be covered in the inquiry.
Former journalist Ketan Tirodkar has filed a public interst litigation alleging that some persons have got two or three flats under the Chief Minister's discretionary quota.
A flat was alloted under the quota only if the person had no other house to his/her name in the city.
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Government had earlier conceded that some people did get multiple allotments by filing false affidavits, and now it had stopped allotting houses following the court's order.
In March this year, the HC struck down the policy of allotment of flats under CM's quota, and asked the state to frame a new policy.
Under the CM's quota, flats were allotted to various categories of people such as freedom fighters, artists, sports persons, journalists and government employees.