A division bench here of chief justice D Y Chandrachud and justice Shree Narain Shukla passed the order on the PIL filed by a social activist Nutan Thakur.
The arguments by the parties' counsels will continue tomorrow also.
The state government and Yadav have already filed their response as per notice of the court issued earlier.
The petitioner had alleged that she had filed a supplementary affidavit giving facts, including details of various alleged false companies floated by Yadav Singh for siphoning off illegal money.