"The Attorney General is asked to sort out the matter. It is better to try to sort out the issue within four weeks," a bench of justices S J Mukhopadhya and Kurian Joseph said.
The court's remarks came when senior advocate Mukul Rohatgi, appearing for the residents body, said the proposal, which may include a plea for either regularisation of illegal construction or relocating flat owners, was being finalised and would be submitted to Attorney General G E Vahanvati within two weeks.
It said the AG would consider the proposal and decide within four weeks.
Referring to earlier proceedings, the bench said the main matter had already been decided and moreover, "the review petition against the judgement has also been dismissed".
"So far as the government is concerned, it can do anything. We do not want to say anything." it said.
Earlier, the apex court had asked the unauthorised flats owners to vacate the premises by May 31 as no specific proposal could be worked out to provide them space in the compound for new construction.
The order was passed after Vahanvati said, "After considering all aspects we are not in a position to work out any specific proposal."
The bench, which stayed the demolition of the unauthorised flats by taking cognisance of media reports, had said that it took the humanitarian ground into consideration to extend the date of demolition from November 11, 2013 to May 31, 2014 as the Attorney General had sought time to come out with a specific proposal for permanent solution.
It had asked the municipal corporation to take action in accordance with its February 27, 2013 order after the May 31, 2014 deadline ends.
The court on February 27 had ordered the Brihanmumbai Municipal Corporation to demolish the illegally constructed flats and on October 1 refused to re-consider its earlier order and had set November 11 deadline to vacate 102 flats which were declared as illegal.
The bench took note of the submission of the Attorney General that there was a need for permanent solution and he will come out with some specific proposal.
Vahanvati had said unauthorised construction has to go but the flat owners should be given opportunity to build up building available in the campus without affecting the apex court order.
He had said since there is space in the compound, the residents should be allowed to get approval of the building plan as originally it was planned to have nine towers and the builders came out with seven by accommodating all buyers in them.
Seven high-rise buildings of Campa Cola Housing society were constructed between 1981 and 1989. The builders had permission for only six floors. One of the compound buildings, Midtown, has 20 floors and another building, Orchid, has got 17 floors.