This is because the residents of these koliwadas were unable to expand their houses due to the Coastal Regulation Zone (CRZ) rules
In a boost to the development of the koliwadas in Mumbai, the state government has green signalled the cluster redevelopment of these settlements in the city. The koliwadas are the settlements of the Koli or fishermen community, who are the original inhabitants of Mumbai along with indigenous groups like the Agaris, Bhandaris and Pathare Prabhus. They are spread across areas like Colaba, Worli, Sion, Dharavi and Versova.
https://www.hindustantimes.com/cities/mumbai-news/koliwadas-redevelopment-gets-green-signal-from-state-101661348972584.html
Source: Hindustan Times