"We have initiated inquiry against Police Inspector Nilesh Rane and constable Vinod Naik for their alleged involvement in prostitution racket," Goa Inspector General of Police (IGP) Sunil Garg told reporters.
Two girls hailing from West Bengal were rescued from an alleged prostitution racket in April.
The girls had accused the two police officials of sexual abuse and extortion in their statement recorded before Sub-Divisional Magistrate last month.
Both the policemen were transferred to Goa Reserve Police (GRP) pending inquiry.