The Lokayukta had recommended that the inquiry into the scam allegedly involving former state tourism minister Dilip Parulekar among others should be re-opened by the Anti-Corruption Bureau (ACB).
State Chief Minister Manohar Parrikar today said that the government had accepted the recommendations of the Lokayukta.
"We will inform the Lokayukta office about the decision to re-open the investigation," he said.
In September this year, the Lokayukta which was hearing a bunch of petitions filed by social activists and current state revenue minister Rohan Khaunte, had recommended that the ACB should re-investigate the case.
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The Lokayukta had found the then tourism minister Dilip Parulekar guilty of favouritism while also nailing other irregularities.
The contract for beach cleaning was given to a private firm, which was later withdrawn by the then Laxmikant Parsekar-led government.
ACB which had initiated investigations into the allegations earlier had given a clean chit to all the accused including Parulekar.