Additional Public Prosecutor Hitendra Dedhia said a government notification was issued on September 17 authorising the prosecutor to file the appeal in the High Court, and it would be filed within ten days.
Advocate Ramprasad Gupta, Ramnarayan's brother, has filed appeal in the HC, challenging Sharma's acquittal by the Mumbai sessions court for lack of evidence.
While Sharma was acquitted, the sessions court convicted 21 others including 13 policemen and sentenced them to life imprisonment for murder.
But his brother, advocate Gupta, moved the High Court alleging a fake encounter.
A special investigation team set up by the High Court concluded that Ramnarayan was killed by the police at the instance of his business rival and Navi Mumbai-based builder Janardhan Bange, who allegedly approached Sharma to have Ramnarayan killed.
The division bench headed by Justice P V Hardas today adjourned the hearing for four weeks after recording the prosecutor's statement.