Confirming the development, a spokesperson for Colors TV said in Mumbai that the channel had received the notice but added that the shooting would not be stopped.
"We are examining it (the notice) in detail and we shall challenge it in the required forum, including the courts, if required, " the spokesperson said.
Lonavala Municipal Council CEO Yogesh Godse was not available for comment despite attempts by IANS till late Thursday evening.
In the notice, the LMC has said that despite repeated reminders, the channel had not submitted the requisite documents and maps of the property - an abandoned factory - where the shooting was going on.
Accordingly, the permission and no objection certificate for the shooting could not be granted.
It ordered the channel management to immediately stop the shooting failing which it would initiate necessary proceedings.
"The channel has been told to pack up shooting today (Thursday) itself and move out of the hill station, as per our demands last week. We had objected to the presence of the two Pakistani celebrities on the show, which has created a law and order problem here, " Prakash Porwal, Pune district treasurer of social worker Anna Hazare's Bhrashtachar Virodhi Jan Andolan Nyas, told.
Porwal pointed out that the LMC had already given permission and issued a no-objection certificate to the channel for the shooting in the abandoned factory premises of M/s Anti-Friction Bearings Company Limited.
He claimed that the civic body's move came after he served a notice to Godse Oct 12, threatening to drag him to court for permitting "Bigg Boss" shooting, which violates a Bombay High Court ruling that bans change of user of property in Lonavala.
"Some time ago, the Bombay High Court had ruled that change of user would not be permitted for any property in the town's jurisdiction. The premises where the 'Bigg Boss' shooting is being held is an old factory, which has now been hired for commercial purposes. We have raised objections to this, " Porwal told.
Porwal said that the presence of the 'Bigg Boss' team had shattered the peace and calm of the quiet hill station, around 120 km from Mumbai.
The town has seen a shutdown, several protests by the Shiv Sena and has witnessed a fortress-like security in the past fortnight since the shooting for "Bigg Boss" started.