We have considered optical beams with phase singularity and experimentally verified that these beams, although classical, have properties of two-mode entanglement in quantum states. We have observed the violation of Bell’s inequality for continuous variables using the Wigner distribution function (WDF) proposed by P. Chowdhury et al. [Phys. Rev. A 88, 013830 (2013)PLRAAN1050-294710.1103/PhysRevA.88.013830]. Our experiment establishes an alternate form of Bell’s inequality in terms of the WDF which can be used for classical as well as quantum systems.