NCP leader and Deputy Chief Minister Ajit Pawar and Minister of State for Housing Sachin Ahir today met Chavan over the issue.
Nearly a hundred flat owners in the Compound are set to lose their flats as they were constructed illegally.
Chavan told ministers that if any acceptable options were put forward, the state government was open to making representation in the Supreme Court.
Ahir later told reporters that the issue would now be handled at the state government level in consultation with the municipal corporation.
But the option of utilising the permissible FSI in the premises for the rehabilitation had not been studied so far, he said, adding that "the decision taken by the government would be uniform and applicable to all similar buildings. It would be in accordance with Development Control Rules. We will come out with a solution within a week.