The division bench comprising Justices M Sathyanarayanan and N Seshasayee issued the notice on a petition by one Gothandan.
The petitioner's counsel submitted that erection of the statue inside Kancheepuram municipality was in violation of a government order of 1998.
According to the order, prior permission is needed for putting up a statue. However, in this case it was not done, he claimed.
Gothandan, who claims to be a social activist, referred to a recent newspaper report which stated that Jayalalithaa's statue would be installed in the municipality premises at Kancheepuram on August 30 in the wake of year-long birth centenary celebrations of late M G Ramachandran (former chief minister).
Jayalalithaa was convicted in 2014 in a disproportionate assets case by a special court in Bengaluru, along with close aide V K Sasikala and two others, and sentenced to four years of simple imprisonment.
On an appeal, the Karnataka High Court had acquitted her, which was, however, overturned by the Supreme Court.
The petitioner said he had made a representation on August 20 to the authorities, requesting them to drop the idea of installing the statue.
It may be recalled that a writ petition seeking removal of Jayalalithaa's portraits from public offices is pending with the Madras High Court.
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