Public prosecutor Samir Patil told the division bench headed by Justice Abhay Oka that Home Ministry had cleared the ACB's proposal and the file had been forwarded to Chief Minister Prithviraj Chavan who would take a decision soon.
The court, which was hearing a Public Interest Litigation seeking inquiry against Gavit, adjourned the matter to June 30.
Last week the court had questioned government's inaction despite an ACB report finding prima facie substance in the allegations against Gavit. "Because of the inaction, the evidence will vanish," the judges had said.
Earlier, the court had also asked Gavit to file affidavit declaring sources of the funds from which he purchased the properties mentioned in the PIL.
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The PIL, filed by Nashik-based activist Vishnu Musale, was admitted by the High Court in April this year.
ACB had earlier submitted that even before the PIL was filed it had received several complaints and had held 'a discreet inquiry' against the former minister.