The apex court had earlier stayed the ambitious housing project by reversing the go-ahead granted to it by the Punjab and Haryana High Court.
Later, the Supreme Court transferred the plea to the Delhi High Court and asked it to decide the matter by August 31.
A bench comprising Chief Justice G Rohini and Justice R S Endlaw had earlier issued notices to the Ministry of Environment and Forests, Archaeological Survey of India (ASI), Chandigarh government and the Tata Camelot Housing Colony.
'TATA Camelot' is a Rs 1,800-crore building project having 92,100 flats in 19 towers, ranging between 12 and 35 storeys and is slated to be raised on 53.39 acres of land near the Chandigarh Capitol Complex.
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The project allegedly falls in the catchment area of Sukhna Lake in Union Territory of Chandigarh.
The PIL has been transferred to the Delhi High Court after it has been alleged that the beneficiaries include some of the judges of that high court and top bureaucrats of the state.
The PIL has raised issue of permissibility of the project alleging that it was in violation of Punjab New Capital Periphery Control Act.
It also alleged the project falls within the catchment area of Sukhna Lake and was in close proximity of wildlife sanctuary, declared a reserved forest area.
The PIL said if the land and its surrounding areas are allowed to be urbanised "it will result in the degradation of the habitat and disturb thousands of migratory birds which come every year to the Sukhna Lake".