The district administration of Rampur, according to sources, was preparing to demolish the boundary wall of the resort "in a day or two".
The Uttar Pradesh Irrigation Department had served a notice to Khan, alleging that the luxury resort was built on land owned by the state government.
Allegations of irregularities have also been raised by the district administration regarding the encroachment of government land in the resort.
On July 29, Khan was declared land mafia following a series of cases registered against him in connection with the grabbing of government and agricultural land owned by poor farmers.
The Enforcement Department (ED) is also inquiring into alleged money laundering charges related to donations from abroad in the account of Khan's private university the Mohammad Ali Jauhar University.
The ED has sought a list of cases registered against the MP from Rampur police.
Rampur Superintendent of Police (SP) Ajay Pal Sharma has said that the police have sought the revenue records, payment receipts and land agreements with different parties from whom the land, worth several hundred crores, was purchased.
"We need to investigate the sale deeds and verify authentic documents to ascertain the actual seller. We also want to assess the accounts through which the payments were made. The parties which received the payments have to be authenticated," he said.
( With inputs from IANS )