"Prima facie the blast seems to be part of a terrorist attack. In this connection a case has been registered with Vishrambaug police," a brief statement issued by the Anti-Terrorism Squad said.
A case has been registered under sections 307 (attempt to murder), 324 (voluntarily causing hurt by dangerous weapons or means), 120 (B) (criminal conspiracy), besides various sections of the Explosives Act and Unlawful Activities Prevention Act.
The statement said evidence collected from the blast site has been sent for chemical and forensic examination and reports are awaited.
Statements of eye-witnesses are being recorded, it added.
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A team of the National Security Guard(NSG) also inspected the scene of explosion which has been cordoned off.
There was, however, no official word on whether the investigators have been able to get clues about the perpetrators from CCTV footages being examined by the police or the kind of explosive used to trigger the blast.
Faraskhana police station is located close to Dagdusheth Halwai Ganesh temple, which has been on the terrorists' radar for quite some time.
In 2010, a suspected Indian Mujahideen(IM) operative Qateel Siddiqui had made a failed attempt to plant a bomb there. He was found strangled to death in Yerawada Central Jail in June 2012.