With the incident evoking sharp reactions from political parties, Rajshri Shirwadkar, the corporator with the Brihanmumbai Municipal Corporation, expressed "deep regret".
"One of my picture has gone viral at social media. It was taken on the occasion of Maharashtra Day celebration. I realised my mistake and expressing my deep regret as I have immense respect for the Chhatrapati Shivaji Maharaj," Shirwadkar said in a statement.
She said the opposition is unnecessarily politicising the incident.
Meanwhile, a Congress committee from Sion-Koliwada area organised a peace march in protest against the BJP leader near King Circle and demanded a police action against the "earring corporator".
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"I am very hurt and angry to brief you that Rajshree Shirwadkar has shown utter disrespect to Maharashtra's 'aradhya daivat' Shivaji Maharaj. We demand that she should be booked and criminal case be initiated against her," said Amit Shetty, a local Congress leader.
However, Amit said, "It's not an act of lack of judgement that could be explained and she can get away by simply tendering a apological statement (sic). Her deed is unforgivable and police action is the only remedy for such an act of disrespect to whom we love so much".
The said picture was taken during an event organised for children suffering from cancer, on May 1.