Police said the bomb-like object was noticed outside the Infinity Mall in a garbage dump after with the entire area has been cordoned off.
The object looks like gelatin sticks bunched together with adhesive tapes.
The mall has been evacuated and Bomb Detection and Disposal Squad has reached the spot. All traffic movement has been stopped.
Further details are awaited.
Photos: Shah Rukh Khan, Shweta Bachchan at Karan Johar's book launch
Photos: Sunny Deol with sons Karan and Rajvir at Mumbai airport
Photos: 10 beautiful moments that capture winter around the world
Photos: Karisma Kapoor, Preity Zinta, Shraddha Kapoor at Mumbai airport
Spotted: Anushka Sharma and Diljit Dosanjh at Mumbai studio