The petition, filed by former journalist Ketan Tirodkar, came up before a bench headed by Justice P V Hardas.
Tirodkar also sought a report on investigation into 'benami' (proxy) purchases of flats in the society.
In many cases, people standing in as proxies for prominent political leaders have allegedly bought flats in the multi- story society which stands in south Mumbai, the PIL says.
Chavan has been accused of granting certain illegal concessions to the society in return for two flats for his relatives.
Tirodkar, arguing in person, contended that it was not necessary for the authorities to seek a sanction to prosecute Chavan and others. He cited a Supreme Court judgement which says no sanction is necessary to prosecute officials when judiciary is monitoring the probe.
However, CBI counsel said charge sheet has already been filed and nothing more was needed to be probed.
The court asked the central agency to put its stand on an affidavit and deferred the hearing for a month.
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