The case pertains to the purchase of 300acres of Karupathodam estate for Rs 1.62 crore in April 2000.
The petition was filed by one A K Shaji, who alleged that there was irregularities in the purchase documents.
The court directed the Deputy Supeintendent of Police Vigilance and Anti-Corruption Bureau Unit, Kannur to probe the alleged role of Musaliar in the deal.