Questioning the inaction of local authorities over an alleged illegally constructed bungalow in Alibaug belonging to fugitive diamantaire Nirav Modi, the Bombay High Court today said that it will direct the state government to initiate an inquiry into the issue. A bench of justices AS Oka and RI Chagla is likely to pass an order on Thursday directing the inquiry.

The bench also questioned how the collector of Raigad district, where Alibaug is situated, had decided to exempt Modi's bungalow from demolition.