"The inquiry has begun and will look into whether the arrests were warranted and whether the sections applied were correct. Similarly, the probe will also investigate the incident of vandalism in the aftermath," Home Minister R R Patil said.
The government instituted an inquiry headed by the Konkan range IG into the matter yesterday and sought a report immediately.
Patil said it would be wrong on his part to comment on the police action when the inquiry was on.
The report of the IG level inquiry in the case is expected tomorrow, he said.
"Government has taken the incident very seriously," he said, adding more clarity was required in the IT Act to prevent misuse.
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Chief Minister Prithviraj Chavan told reporters, "Let the report come, then action would be taken."
Meanwhile, Shiv Sena spokesman Sanjay Raut justified the police action against the two girls.
"Balasaheb's death has been a shock to the entire nation. Sainiks showed tremendous restrain in controlling their emotions," Raut told PTI.
"The bandh was spontaneous and not forced by Sena. It was because of love and respect for Balasaheb. Shiv Sainiks were naturally upset at the misuse of the social media to post provocative comments," he added.