The departmental inquiry had been pending for two years following the Vadnere committee report.
Chavan, who was in Thane today, said that he had approved the probe while denying that there was a delay of two years in taking the decision.
On why it took so much time to act on the report, he said the government had to conduct its own inquiry and later arrive at the conclusion of ordering a probe and added that this process takes time.
The engineers, including VIDC's former chief executive director D P Shirke, will now face probe on several counts including having turned a blind eye to government norms while clearing cost escalations, not supervising works on site and not following tender conditions.
The one-man Vadnere committee was set up in March 2010 following complaints and media reports over cost escalations, and official-contractor-politician nexus in approving projects in Vidarbha.
When asked about his meeting with NCP chief and Union Agriculture Minister Sharad Pawar yesterday, Chavan said he had two-three meetings with Pawar in the recent past wherein the issues relating to the state and Centre were discussed.