Television visuals showed that while a protest meeting was being held in front of the office, some of the activists had climbed the building walls and rolled down the flag.
The Brihanmumbai Municipal Corporation (BMC) said the situation was well under control and advised citizens to step out of their homes only if necessary.
The maverick filmmaker says Shivaji's story is more heroic than Baahubali. "Shivaji's story has more heroism and drama than Baahubali and he was real unlike Baahubali which will make it a more thrilling experience (sic)," he adds. Ravi Jadhav will direct the film.
According to police, the two groups exchanged heated words around midnight, leading to tension in the town, located around 50 kms from Panaji in North Goa.