This is the second mishap since heavy rains started about 48 hours ago.
There is no confirmation of human casualties in the collapse of the MHADA building.
Fire trucks have been rushed to the building and the National Disaster Relief Force has been notified of the incident.
Earlier, a part of a building collapsed in Antop Hill area of Wadala.
Pydhonie forms the boundary between the eastern part of South Mumbai, populated largely by Muslims, from the western part, populated largely by Hindus.
It is also the location of a famous Mumbadevi Temple.
Details will be updated as they become available.