The order comes ahead of Diwali festival later this week.
"Make a thorough check in all the ward areas and find out whether any licence holder has violated the rules of storing firecrackers and take action against the offenders," said a division bench headed by Justice V M Kanade while hearing a petition.
The petition raised issues concerning sale and storage of firecrackers in residential areas without following rules and regulations.
Earlier, the high court had observed that shops storing firecrackers should not be set up in residential areas and directed civic bodies in the state to ensure strict compliance with rules related to keeping of these small explosive devices to avoid any mishap.
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The court had also expressed concern over incidents of explosions in factories and shops where firecrackers are made and stored.
It had also observed that firecrackers are burst not only during Diwali but also in other festivals.
"Ideally, such shops should be located in open spaces so that damage in case of some untoward incident is minimal and it becomes easier for monitoring," the court had said.