A bench headed by Justice R M Lodha asked the authorities to file response within four weeks and posted the case for hearing on March 14.
Senior advocate Harish Salve, appearing for the petitioner, alleged that the Motor Vehicles Rules are against the Constitution as they creates a class of people who are entitled for red beacon which is against the concept of "republicanism".
Salve had earlier submitted he had checked the relevant rules in the US and Britain and even in Britain, the Prime Minister does not use beacon light atop his vehicle.
The apex court had on December 10 ruled that red beacon can only be used by high dignitaries holding constitutional posts while on duty, putting an end to its misuse by politicians and bureaucrats flaunting it as a status symbol.
The apex court also banned private individuals from using siren in their vehicles, saying it is reflective of the "Raj mentality".
It had said there has been "abysmal" failure of the authorities to check misuse of red beacon and pulled up them up for their failure to prevent misuse of siren for the last 24 years.