A Division bench told the 79-year-old anti-graft crusader to approach the police first and said his PIL seeking a CBI probe could not be considered "at this stage".
"First file a police complaint based on your allegations, and if they refuse to register it, then approach their higher authorities and even if that does not work out then come to us," the bench told Hazare.
As Hazare's counsel sought time to register a police case, the bench adjourned the matter to February 13.
Hazare has filed two more civil PILs on the same issue which are expected to come up for hearing in due course.
The petitions alleged that fraud had been committed in governance by first burdening sugar cooperative factories with debts and thereafter selling these sick units at a throwaway price, causing a loss of Rs 25,000 crore to the government, cooperative sector and members of public.
The petitions name Sharad Pawar and Ajit as respondents.
Hazare also demanded setting up of a Commission of Inquiry to probe the alleged illegal sale of the sugar factories in Maharashtra either by the Government or the cooperative banks.
The petitioner demanded an inquiry by CBI into the allegations of corruption and misuse of government and cooperative funds involving lease and sale of cooperative sugar factories in Maharashtra.
The petitioner stated that the statistics and facts mentioned in the petition have been collected from authorities under Right to Information Act.
Pawar had earlier said he would file a defamation suit against Hazare over the allegations.
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