MLA Indranil Rajyaguru and 50 party workers have been arrested, said M N Solanki, police sub-inspector of Raiya Dhar area.
The Congress has been opposing the project alleging that the civic body is constructing the housing colony only to "benefit" a few real estate developers and the work on the project would be "weak".
"Nearly 50 Congress workers including Rajkot East MLA Indranil Rajyaguru along with senior city unit leaders rushed to Raiya Dhar area and pulled down the wall constructed at the RMC housing project site," Solanki said.
However, the BJP which rules the RMC denied the Congress MLA's allegations that the housing project would be constructed as a "weak" structure.
RMC standing committee chairman Nitin Bhardwaj termed the Congress' allegations as "baseless".
"The civic body is keen to provide quality housing to slumdwellers," Bhardwaj said.
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