A bench of Justices Naresh Patil and N W Sambre also asked the state transport department if it was possible to impose a condition that one must produce proof of having access to adequate parking space when buying a vehicle.
The Transport Department and the Brihanmumbai Municipal Corporation (BMC) should submit their suggestions within two weeks, the court said.
"A person who can't afford to buy a car can't even walk on the sidewalk because there are vehicles parked illegally. You (the state) are snatching his right by indiscriminately allowing so many vehicles on the road and permitting their owners to park illegally," the bench said.
The high court was hearing a public interest litigation claiming that the increasing number of private vehicles on the city's roads and the lack of adequate parking space were inconveniencing the public at large.
During an earlier hearing, the bench had cautioned the BMC that the city would soon run out of open space if a solution wasn't found to the problem of burgeoning number of private vehicles and illegal parking.
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