Palande, who is presently in jail, was granted bail in 2007 by the High Court in connection with another murder case of 1998.
Maharashtra government has now sought the bail order to be cancelled on the grounds that the accused while out on bail had committed two serious offences of murder.
Palande and his partner,a small-time actress Simran Sood have been accused of murdering Delhi-based businessman Arun Kumar Tikoo and another person Karankumar Kakkad in 2011.
Palande was arrested in August 1998 for the kidnapping and murder of a city-based businessman Swaraj Ranajandas. In December 2002 he was convicted and sentenced to life imprisonment.
According to prosecution, on December 7, 2007, the High Court granted bail to Palande.
"He was arrested again in 2011 for the murder of Tikoo and Kakkad. While on bail he had committed the offence of murder, hence we are seeking for cancellation of his bail," additional public prosecutor F R Shaikh argued.
A division bench of Justices N H Patil and A R Joshi directed Palande's lawyer to take instructions and respond to the state appeal within a week.
