Mangeshka has sought quashing and setting aside the January 4 notice issued by the Competent Authority under the Land Ceiling Act.
The state government sought time to file reply and the matter has been adjourned for hearing in December.
Mangeshkar owned land admeasuring 38,623 square metres in Kolhapur and wanted to give it to Vikesh Oswal for the development of residential and commercial tenements. However, Competent Authority under the Urban Land Ceiling (ULC) Act had declared 23,889 square metres land as surplus.
The singer executed an agreement with Oswal and also gave him a power of attorney in respect of development of that land in lieu of Rs 4.5 crore. By that agreement, Oswal secured the right to construct residential and commercial units and he procured Floor Space Index to build tenements on that land in order to sell them.
Meanwhile, the Competent Authority under ULC Act gave a notice to Mangeshkar on October 20 last year asking her why she had not implemented the scheme proposed by her under section 20 of ULC Act.
The singer replied that the issue of validity of section 20 of ULC Act was pending in the Bombay High Court and she would reply only after this was decided.