Briefing reporters, Law and Parliamentary Affairs Minister T B Jayachandra said both the courts will be set up here.
The government has launched a demolition drive in the city recently clearing the lake beds of encroachments under which several commercial buildings and homes have been brought down.
He also said government would decide on the action to be initiated against encroachments, also in lake areas, once the house committee headed by MLA K B Koliwad submitted its report, which was expected within fifteen days.
An estimated Rs 199.3 crore is likely to be spent for this purpose.
After going through the recommendations made by the cabinet sub committee constituted to demarcate eco-sensitive zones, the state cabinet has decided to recommend the central government to notify 30 eco-sensitive zones in the state that include national parks and wildlife sanctuaries, Jayachandra said.