Amid spontaneous public outrage and grief over 69-year-old Dabholkar's killing, the state Cabinet approved the ordinance, which is likely to be promulgated in a day or two after its ratification by Governor K Sankaranarayanan, sources in the state secretariat said.
The sources said the Bill against black magic, blind faith and superstition would be passed in the next session of state legislature.
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Political parties and social organisations, who had called a "symbolic bandh" against Dabholkar's murder, took out a protest march and held demonstrations in Pune.
Shops and business establishments were partially closed but normal life was not disrupted.
Angry members of the public did not allow local level politicians to make a speech at the rally, denouncing political parties for failing to bring in a tough law to tackle the social menace.
Chief Minister Prithviraj Chavan appeared to hint at the possibility of right wing groups being behind the murder of Dabholkar when he equated his assassination with that of Mahatma Gandhi.
"Forces who could not tolerate Gandhiji...Who could not tolerate his views and silenced his voice... The same way forces who could not stand the power of Narendra Dabholkar's views have silenced his voice by his brutal murder," he said.
He said the case has been handed over to Mumbai crime branch for investigation.
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