A Judicial Inquiry Commission was formed on Monday under retired Judge S.K. Pandey to investigate the Bhopal SIMI encounter.
Three months are given to submit its report.
A PIL was also filed in the Madhya Pradesh High Court earlier on Thursday on the issue demanding judicial probe into the incident.
The under-trial activists of the outlawed SIMI escaped from the Bhopal Central Jail on the intervening night of October 30-31 and were subsequently killed in an encounter on the outskirts of the city on October 31.
Before escaping from the jail, the SIMI activists also killed a head constable Ramashankar Yadav.
Since the encounter took place, conflicting versions from the police and state Home Minister surfaced, leading to allegations that it might be fake.
A controversy also raged over the police action following the daring pre-dawn jail-break, after TV channels showed footage purportedly from the encounter site in which a policeman is seen pumping bullets into a man from close range after some unidentified person takes out what appears to be a knife said to be in a plastic cover and places it back.
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