Chavan has sought quashing of FIR lodged against him by CBI, arguing that he was falsely implicated by political rivals.
Petition also claims that CBI has no jurisdiction to probe the case, as neither the High Court nor the Maharashtra government had asked it to take over the probe.
At the last hearing, HC had sought replies from both the state and the CBI.
CBI said in its reply-affidavit today that Chavan, as the Chief Minister, granted 'undue favours' to the Society, in return for which his relatives were allotted three flats.
Chavan also asked the Society to take 40 per cent members from civilian category, when it was originally meant only for war veterans, CBI alleged, adding that Chavan played a key role in the scam.
As to the jurisdiction, it said Defence Ministry had forwarded a complaint to it, which led to probe.
But Maharashtra government, in its affidavit, reiterated its stand that CBI had no jurisdiction to probe the scam.
The division bench of Justices P V Hardas and A R Joshi today sought copies of all the orders passed by other benches in the case, and affidavits filed by parties.
Next hearing will be on April 12. Chavan's mother-in-law Bhagvati Sharma, sister-in-law Seema Sharma and father-in-law's brother Madanlal Sharma have flats in the society.
CBI has filed chargesheet against the former Chief Minister and 12 others for criminal conspiracy, cheating and criminal misconduct under Indian Penal Code and also under Prevention of Corruption Act.