TMC official Santosh Kadam said the Savera Apartments in the old market area was found to be in a dangerous condition.
The ground-plus-five building was tilting towards the nullah on one of its sides and had developed cracks.
Chief fire officer Shashikant Kale said the building would be sealed and water and power supply would be stopped immediately.
Anti-encroachment department officials would decide when to pull down the building, he added.
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