The court, however, stayed the execution of its order for four weeks to enable the investigating agency to file an appeal.
"I am inclined to reject the petition and dismiss it," Justice M L Tahilyani said in an one-line order the details of which would be pronounced later.
The judgement was delivered through video conference as Justice Tahilyani is currently presiding over a bench in Nagpur.
"The plea for a stay on the order is being granted as CBI wants to file an appeal," the judge said.
The court also rejected an intervention application filed by social activist Ketan Tirodkar opposing CBI's plea for dropping Chavan's name, accepting the investigating agency's contention that he had no locus standi in the case.
Justice Tahilyani, however, said he would go through the Supreme Court judgement cited by Tirodkar that gubernatorial sanction was not required when charge sheet had already been filed against an accused.
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