The nearly two decade old market, located on the Ambad-Link road, was established illegally on unauthorised land. Heavy police bandobast was made at the site.
"The market comprises more than 700 shops - both pucca and temporary constructions - and few shops have been pulled down today. The drive comes following a Bombay high court order. The drive would continue for next 2-3 days," NMC Deputy Commissioner (Encroachment), R M Bahiram said.
It has been postponed on several occasions in the recent past due to political pressures.
The scrap merchants' association had on Friday filed a plea with the Bombay high court, seeking stay on the demolition action, which was rejected by the court.