The probe panel, with its headquarter at Shimla, will be headed by Justice (Retd) D P Sood, Chief Minister Prem Kumar Dhumal, who is in Delhi, said in a statement.
Dhumal said the panel will probe into the issues relating to benami land transaction in violation of section 118 of H P Tenancy and Land reforms Act, 1972 since 2003 till March 31, 2011, which have resulted in transfer of agriculture land to non-agriculturists.
Under section 118 of the Act, the government holds discretionary powers about permitting sale of agriculture land to anyone for specified usage purposes.
The probe panel will submit its report within six months. The CM said the judicial inquiry has been ordered in accordance with the announcement of the government in the state Assembly.
He said that opposition parties have been labelling "baseless" allegations and "spreading canards" regarding sale of land to the real estate and private universities to mislead the common man regarding alleged violation of the land Act to gain political benefits.
Land purchase by Justice Nirmal Yadav of the Punjab and Haryana High Court in Solan district had also made national news.
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