The PIL filed by Churchgate Residents' Federation alleged that construction of the 14-storey 'Vasant Sagar' was carried out without necessary sanctions from the Ministry of Environment and Forests (MoEF) and the Mumbai Heritage Conservation Committee (MHCC).
According to petitioners, the old five-storey building was razed to construct the highrise allegedly in violation of several provisions in law.
Five storeys of the residential tower had already been built before the high court stayed its further construction in July.
While MoEF claimed that the building was being constructed in Coastal Regulatory Zone (CRZ) and hence its permission was required, the developers claimed that necessary permission was taken from the Maharashtra Coastal Zonal Management Authority (MCZMA).
The Brihanmumbai Municipal Corporation (BMC) had told the high court in its affidavit earlier that the permissions given to the building for redevelopment were in accordance with the law.
A division bench of Chief Justice Mohit Shah and Justice N M Jamdar directed the government to clarify its stand by December 10 after which the court will hear and decide the PIL.