The Maharashtra government on Monday told the Bombay high court that it will set up a commission of inquiry to probe the Adarsh society housing scam here.

A division bench of justices A M Khanwilkar and A P Bhangale was informed so while hearing a PIL filed by social activist Simpreet Singh demanding that entire probe be handed over to the CBI.

The CBI had told the court earlier that it had already taken over the probe.

Additional solicitor general Darius Khambata said CBI was probing the case, but no FIR has been filed yet.

Advocate Y P Singh, appearing for petitioner, said Singh last month filed a complaint with the anti-corruption bureau, accusing former chief minister Sushilkumar Shinde and others of "falsifying documents", but ACB did not register an FIR.

"As per rules, ACB is supposed to register FIR within 48 hours (of receiving a complaint)," advocate Singh said.

But advocate general Ravi Kadam pointed out that the petition did not seek registration of FIR by ACB.

However, advocate Singh argued that ACB could first register a case, and then state could hand over the case to CBI.

Since both CBI and state sought time to file affidavits on progress of the probe, the court adjourned hearing to January 18.

On December 9, chief minister Prithviraj Chavan had announced, in the state legislature in Nagpur, that a judicial inquiry will be set up for the scam.