A division bench of Chief Justice R Subhash Reddy and Justice V M Pancholi issued the notice while hearing the petition filed by social activist Chhagan Mevada.
The next hearing will be after one week.
The state Urban Housing and Urban Development Department has also been made a respondent to the PIL.
The regulatory authority under the Act is required to check if the builder has the capacity to complete the project in the given time, the petition said.
This will stop unscrupulous practises such as taking money in advance from flat buyers and not completing the project within the promised time, it said.
Sometimes a scheme never takes off and the buyers get cheated, it said.
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