According to reports, Khan will now be tried for culpable homicide not amounting to murder.
Khan has pleaded not guilty to the charges. However, if proven guilty, the actor might be sentenced to 10 years in prison.
Khan on Friday appeared before the Mumbai sessions court in connection with the case.
The court deferred the hearing into the case till July 24.
Khan was earlier facing the trail for rash and negligent driving, which awards the convict with a maximum sentence of two years.
However, the court handling his case, in January, accepted that the police have provided evidence that merits trying the actor for culpable homicide not amounting to murder, which awards the convict a punishment upto ten years in prison.
The case was then transferred to the sessions court as the magistrates' court did not have the jurisdiction to hear the same.
In February, Khan challenged the order and filed a revision petition, pleading that the stringent charges against him be dropped.
In 2002, the actor driving a SUV had run into a bakery in suburban Bandra, and the accident took the life of one pavement dweller while injuring four persons sleeping on the pavement outside.