Three people have been arrested so far, they have been identified as Raju Hanmanta Pascar, Donald Robert Patel and Gautam Harte. They were produced before a Court, which remanded them to police custody till June 26.
Eight police personnel have also been suspended; the case is being handled by the Crime Branch.
Mumbai Police spokesperson Dhananjay Kulkarni, told reporters, "senior police inspector (attached to Malwani police station) along with seven other personnel, including three officers and four constables, have been suspended for connivance/negligence".
Chief Minister Devendra Fadnavis had ordered an inquiry into the incident last night and directed officials to submit the report within two days.
Police has collected samples of spurious liquor and sent them for analysis.
Additional Commissioner of Police (North Zone) Fatteh Sinh Patil, told NDTV, "We are in the primary stage of investigation and not in a position to divulge much details. We are investigating who is responsible for this and how the liquor was brewed."
The three accused have been booked under sections 304 (punishment for culpable homicide not amounting to murder), 328 (causing hurt by means of poison, etc. with intent to commit an offence) and 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code.
This is the second biggest tragedy in Mumbai in nearly a decade. In 2004, 87 people died after consuming spurious liquor in Vikhroli in the eastern suburbs. Nineteen people were convicted and jailed in connection with the "Vikhroli tragedy".
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.