Karunasagar has alleged Owaisi used inflammatory and derogatory words against Hindu gods while addressing a meeting at Nirmal town of Adilabad district on December 24.
A video of the speech uploaded on YouTube was taken off on December 28.
The VII additional chief metropolitan magistrate on Wednesday reserved his order on the petition. The court will decide whether to direct the police to file an FIR against the MLA or take direct cognisance and issue summons.
The MLA is in London and could not be reached for comment. His elder brother and Lok Sabha MP Asaduddin Owaisi said, "Our party will abide by the court order."