The Bombay high court last month, asked the Maharashtra government to justify its decision to grant the actor early release from prison in the 1993 serial blasts case.
Dutt was earlier sentenced to five years in jail for possession of arms, which were a part of the consignment used in the 1993 blasts.
The actor, who was on bail during the trial, had surrendered in May 2013 after the Supreme Court upheld his conviction.
Dutt was let out in February 2016, eight months early, on account of his good conduct while in Punes Yerwada prison.
A division bench of justices R M Sawant and Sadhana Jadhav was on Monday hearing a public interest litigation by Pune resident Pradeep Bhalekar challenging the regular paroles and furloughs granted to Dutt when he was serving his sentence.
The court then directed the state government to file an affidavit
stating what parameters were considered and the procedures followed
while deciding that Dutt deserved leniency.