Patel, a judge of Ahmedabad Rural Court, said "not before me" when the matter came up.
The case was then transferred to Additional Sessions Judge D P Gohil, who issued notice to the state government and adjourned hearing till tomorrow.
Kotadiya, a sitting MLA from Dhari in Amreli district, approached the court seeking anticipatory bail after city- based builder Madhu Vasani lodged a complaint of extortion against him at Vastrapur police station two days back.
As per the FIR, when Vasani refused to pay the money, Kotadiya and one of his accomplices thrashed him and took away a gold chain and pendent worth Rs 60,000.
Kotadiya, who has often criticised the BJP government, particularly on the Patel quota issue, claimed the FIR was a conspiracy to keep him away from the quota agitation.
He had won on a ticket of Gujarat Parivartan Party, floated by former Gujarat Chief Minister Keshubhai Patel, which merged with BJP two years ago. BJP has now disowned him following his inflammatory comments about BJP and its leaders.