The Sri Divya Kankana Alankara Maha Ganapathi pandal in Sri Nagar, Gajuwaka, witnessed tension on Monday night.
The pandal has attracted attention for its 117-foot Ganesh idol decorated with around one crore glass bangles.
According to organisers, police asked them to remove stalls set up around the pandal and dismantle the ‘Yamalokam’ themed structure.
The organisers reportedly said they had obtained the necessary permissions for the arrangements around three months earlier.
The issue led to an argument between stall owners and police personnel deployed at the venue.
Police had not issued an official statement on the matter at the time of the report.
The pandal has been one of the major attractions of this year’s Ganesh celebrations in Visakhapatnam.