Rashmi Development Pvt Ltd has moved the court against the decision of the Brihanmumbai Municipal Corporation (BMC) and a high court-appointed committee.
The project has got no-objection certificate from the Maharashtra Tourism Development Corporation (MTDC), Western Naval Command, Mumbai Metropolitan Region Development Authority (MMRDA) and the Coast Guard, the petition stated.
In May last year, the court-appointed a three-member panel comprising the Mumbai Police Commissioner, the municipal commissioner and the chairperson of the Mumbai Heritage Conservation Committee, which rejected the proposal.
The panel rejected the proposal and forwarded its decision to the BMC saying the hotel, meant to be a tourist attraction, will lead to much more vehicular movement in the area, adding to the existing traffic congestion.
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As the proposed site for the jetty -- the end of the Marine Drive promenade, near the National Centre for the Performing Arts -- comes under the jurisdiction of the Maharashtra Coastal Zone Management Authority, the latter's permission must also be taken, it had said.
"The committee anticipated problems related to crowd management and traffic near the Marine Drive promenade. Accordingly, we asked the MTDC to tell the petitioner to choose any other site," the BMC said in an affidavit.
The petitioner argued that the fear of increase in traffic congestion was baseless as the MMRDA, the planning body, has already given its no-objection certificate.
The project has a provision for adequate parking space, the plea stated.
Justice A S Oka observed that the issue of traffic congestion is crucial and the court will have to consider it before passing any order.