The Maharashtra government will conduct an enquiry to ascertain whether present and former legislators were allotted MHADA flats in violation of the rule that bars those already possessing houses in Mumbai from applying for government accomodation.

"We will enquire if any minister or legislator has been allotted flats in MHADA HIG scheme in suburban Mumbai despite their possessing a house in the city," minister of state for housing, Sachin Ahir said.

The government will issue show cause notices to those found guilty, Ahir said.

The minister's statement comes a day after the government called off a ceremony where the allottees were to be handed over keys to the flats by chief minister Ashok Chavan and his deputy Chhagan Bhujbal.

Media reports have alleged that several among the 200 odd sitting and former legislators and ministers, who were allotted flats in a housing society in Versova by state housing body MHADA, already had houses in Mumbai. The MHADA rules prohibit those already possessing houses in the city from applying for flats built by the state government undertaking.

The reports said that the allotments could be cancelled if the allotee legislators or their spouses had houses in their names.