"We were badly disturbed by the development that is taking place at Campa Cola premises in Mumbai," the Supreme Court said.
"Apart from legal issues, there is also a human problem in the case," the apex court said in its order.
The court also agreed to consider a proposal to constrict a separate building in the premises for those whose apartments are to be demolished.
The attorney general said that the BMC will give a new plan to allow building of new homes in lieu of the illegal flats. AG also told the apex court that space was available inside Campa Cola premises to raise new structure for houses.
The SC has sought for fresh proposal from the AG by Tuesday.
Earlier today, there were scenes of euphoria and bursting of fire crackers in the Campa Cola compound as the apex court stayed the demolition of unauthorized flats in the complex for six months.
Shortly before the court order, the Brihanmumbai Municipal Corporation squad bulldozed its way inside the compound by breaking open the gate to gain access. They used an earthmover to topple the gate as residents tried to block the entrance.
Scuffles broke out between angry residents and police. Some residents alleged that police used force against women.
Shortly after the court order, the civic staff began to make a retreat, leaving the residents to celebrate the reprieve.
Fire crackers were burst to welcome the ruling, after the apex court took suo motu cognizance of media reports on demolition of the building and stayed the action and ordered the BMC to delay the demolition till May 31, 2014.
In the ruling on Wednesday, the court has also ordered the BMC to take action against the builders.
The apex court had earlier ordered BMC to demolish 96 flats across 35 illegal floors in seven buildings in the compound. The SC deadline to vacate the flats ended on Monday.
The flats were built without the permission of BMC and hence were declared illegal. Over 100 families have been residing in the complex for the past 25 years.
The residents of the Campa Cola compound have been waging a long legal battle since 2005 when they first went to court for water connection and regularization and the court ordered the then municipal commissioner to take time-bound action in the case.
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