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The situation is under control and there were no injuries or hospitalisations, said Yasin Tadvi, Chief of the Disaster Management Cell of the Thane Municipal Corporation (TMC).
Panic ensued after smog-like conditions prevailed in the Morivali MIDC area of Ambernath town, on the outskirts of Mumbai, around 11 pm on Thursday, the official said.
After receiving complaints about a burning sensation in the eyes and breathlessness, local firefighters investigated the source of the haze, which was traced to a chemical company. They also advised people to stay indoors as a precaution.
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The manufacturing activities at the company have been halted temporarily, the official added.