The tribunal's order came after Public Work Department (PWD) informed the green bench that it has obtained requisite permission from the Forest Department.
A bench headed by Justice U D Salvi, however, directed PWD to deposit Rs 2 lakh as ad-hoc compensation for illegal cutting of the trees.
"Interim order against widening of road from Andheria Mod to Fortis Hospital and for felling of trees along it stands vacated on deposit of Rs 2,00,000 with the registry towards the ad-hoc compensation for illegal cutting of the trees before grant of the requisite permission under law.
The matter is now listed for next hearing on September 24.
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During the proceedings, the counsel for the PWD informed the tribunal that 810 trees are required to be removed in the first phase of the work and the permission for the same has been granted on the condition of compensatory plantation of 10,000 trees.
Earlier, in March 2013 NGT had restrained PWD from cutting of trees and ordered an interim stay on road-widening project at the site without prior permission.
The petition had alleged that despite the injunction orders of the tribunal being in force, trees continued to be cut down at the site.
In her petition, Ghosh had sought initiation of action as well as imposition of penalty against the PWD for alleged violation of the NGT's orders.