A division bench of Justices N H Patil and V L Achliya was hearing a PIL filed by Hindu Janjagriti Sangh, seeking implementation of a August 2007 circular banning the use, sale and purchase of such flags.
The PIL said that after Republic Day and Independence Day, flags are found on roads and gutters.
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The central government had earlier informed the court that there was a proposal pending to ban manufacture of national flags made of plastic. However, a decision has not been taken yet.
The High Court today asked the state government to create public awareness so that people do not buy such flags and then throw them away.
"The government should come up with a comprehensive policy. Create public awareness. Like the national anthem and pledge are printed in school textbooks, a message about national flags can also be printed," the bench said.
The court also said that an officer from every ward of the civic body should be given the task to ensure that flags that are thrown away after Independence Day and Republic Day celebrations are collected and arrangements are made for their disposal.
The bench has posted the matter for further hearing on April 27.