Mumbai Suburban District Collector Vishwas Patil said his office would conduct an inquiry into the matter following directives from the State Election Commission.
"It will take us at least two or three days and by early next week, we shall submit a report. We'll find out whether the alleged incident constitutes a violation of the code of conduct in force (ahead of the Lok Sabha elections), " Patil told.
On the occasion of Holi festival Wednesday, hordes of supporters had thronged Govinda's Juhu residence as he cheerfully greeted and waved out at them.
Later, an aide brought out some cash which he allegedly distributed among the supporters, including some eunuchs, waiting on the road outside.
Some television channels showed footage of the incident, which was brought to the notice of the Chief Electoral Officer (CEO) of Maharashtra.
State Congress general secretary Sanjay Nirupam said it is a tradition among north Indians to give cash gifts during Holi.
Govinda, a popular actor, represents the Mumbai North constituency as a Congress member.