The court was hearing a PIL, filed by Hindu Jan Jagaran Samiti, seeking a ban on plastic flags.
The petitioner's lawyer, advocate Anand Patil, argued that there was no mechanism to dispose of plastic flags after Independence Day or Republic Day.
The court also directed the state government to make proper arrangements for disposal of such flags, adding that the tehsildars and the collector offices would be the nodal agencies for this job.
It further directed the state government to allow NGOs to collect the flags and hand them to the collector's office or tehsildars.
The court also directed the state and the central government to file a compliance report.