A bench of Chief Justice N V Ramana and Justice Rajiv Sahai Endlaw directed the NGO, Maulik Bharat Trust, to approach the magisterial court for appropriate action.
"Whatever relief you are seeking from this court cannot be granted in this PIL," the bench said, adding, "You can approach the magisterial court as high court is not the appropriate forum."
The court also observed "you have a good case, so go to a appropriate magistrate and argue your case and then ask for prosecution if there is any violation of the election rules".
In its petition, the NGO had alleged that Keriwal has violated provisions of the Representation of People Act by submitting an incorrect affidavit, regarding details of his assets and income, at the time of filing his nomination.
"In the affidavit submitted to Election Commission at the time of filling of nomination he submitted the wrong detail of his Indirapuram plot. He also undervalued the cost of his property and mentioned its market value at Rs 55 lakh. Present fair market value of the property is approximately Rs 2.4 crore....," the PIL alleged.
Apart from cancellation of Kejriwal's nomination, the NGO had also sought a CBI inquiry of the allegations they had levelled against him as well as directions to the government "to generate a permanent mechanism to check and verify affidavit of all candidates willing to contest elections".