The probe has now been handed over to a Special Investigation team on the request of Lokayukta, George told reporters here.
Lokayukta Bhaskar Rao is in the eye of a storm over charges of corruption in his office with his son's name also dragged into it. Facing the heat, Rao has ruled out his resignation.
"We don't have any powers to initiate investigation on Lokayukta on our own. Lokayukta has sent a request to form an SIT and inquire about it. On the basis of that request, Chief Minister has constituted an SIT under an ADGP," he said.
When questioned about the Lokayukta's request to conduct investigation by an independent agency, George said, "They have asked us to conduct an inquiry by an official above the rank of ADGP, according to that we have appointed ADGP."
On the demand for a CBI probe into the issue, George said "We don't have that power; we will have to go by Lokayukta's request; if they ask for a CBI probe we will give it."
"We cannot do it by ourself as it (Lokayukta) is a statutory body. We have gone by the request," he added.
Rao, a former High Court Chief Justice, has rejected allegations that his son was involved in the scandal and said he would resign if the charge was proved correct.
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