The bench comprising Chief Justice J S Khehar and Justice D Y Chandrachud also warned authorities that non-compliance of its order on removal of encroachments will invite "serious consequences" and asked the Deputy Collector of Colaba zone to remain present on the next date of hearing.
The bench made it clear that the encroachments have to be removed within two weeks from today from the 908 square metre area earmarked in the Bombay High Court order.
"You will be personally held accountable," the bench told the officer who was present in the courtroom.
The bench asked the government to remove encroachments as mentioned in the notice issued on March 22 of Deputy Collector Encroachment Removal in which it was said that the area under encroachment was 908 square metres and had noted that the dargah trust had no objection in removing the squatters.
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Senior advocate Raju Ramchandran, appearing for trust, said that out of total 908 square metres area, from where encroachments are to be removed, illegal occupants were still present in about 500 square metres.
The bench fixed the matter for hearing after four weeks.
The bench asked a shopkeeper, who is likely to be evicted from the shrine area in pursuance of its order, to vacate his premises "forthwith", saying "you could have shown that you have some right. We will not allow encroachments."
The trust's offer to remove and demolish the encroachments had come after the apex court made it clear that only the mosque, located on an area of around 171 sq metres, would remain protected while the rest of the area, measuring 908 sq metres, has to be cleared of squatters.
The court had lauded the efforts of the Dargah Trust in its attempts to remove encroachments.
The Haji Ali Dargah was constructed in 1431 in the memory of a wealthy Muslim merchant, Sayyed Peer Haji Ali Shah Bukhari, who gave up all his possessions before making a pilgrimage to Mecca.
The High Court was hearing a petition filed by Sahayak, a socio-legal and educational forum, seeking immediate removal of the encroachments on the approach road to the dargah which is located on the sea.
The Municipal Corporation of Greater Mumbai was of the view that the land on the approach road to Haji Ali fell in the Collector's jurisdiction and therefore the Collector should remove the encroachments.