The division bench of acting Chief Justice Jayant Patel and Justice N V Anjaria sought replies from the Narmada department of Gujarat government and the Patan District Collector before September 15.
The court also issued notices to the Managing Director of Sardar Sarovar Narmada Nigam Limited (SSNL) and the chief engineer of its Radhanpur division.
Nanji Thakor and Meraj Rabari from Radhanpur tehsil of Patan have filed the PIL, blaming SSNL for "defective" work.
The breaches/cracks in canals were leading to frequent flooding of adjacent fields and wastage of water, it says.
While some part of canal embankments were substantially damaged, cracks have developed in many other places and they are not being repaired, it says.
Advocate Hasit Dave, the petitioners' lawyer, said the locals suspect large-scale irregularities.
"Contracts were given to a handful of contractors who have used inferior-quality materials and not carried out proper construction," he said.
The petitioners claim they made several representations to the government, but in vain.
