Adly was sacked by toppled former President Hosni Mubarak at the end of January after a crackdown on protesters, which left more than 300 people dead.
Demonstrating police officers earlier this month blamed him for the order to attack demonstrators and for much of the corruption in the force and demanded that he be executed.
In an interview with an Egyptian newspaper, Adly has denied the accusations.
Cairo’s criminal court has temporaily suspended Adly and his family’s assets including real estate and investments.
Adly is under house arrest after being banned from leaving the country.
The announcement will please the many Egyptians who say Adly released convicted criminals and took the police off the streets.
He has also been accused of playing a role in the bombing of Alexandria's Two Saints' Church on New Year’s Eve.
Meanwhile, the pro-government newspaper Al-Ahram said this morning that the Ministry of Agriculture is drawing up a list of 28 businessmen and companies who misappropriated land for their own gain.
Agricultural land worth more than five billion euros located by the Cairo to Alexandria freeway was supposed to be used for growing crops, but instead used for commercial development.