The tugboat Sonika, with four on board had run aground on rocks in the waters off Raj Bhavan during low tide late on Monday night and had begun to flood.
The site is in vicinity of the area where a Shivaji statue is planned to be built.
A distress call was received at the Mumbai Main Police Control Room from the tugboat after which a police launch from Mahim reached the site around 9.15 p.m. on Monday.
But they could not approach the tugboat due to rocks and shallow waters.
The Indian Navy was then approached for assistance and the Joint Operations Centre was also contacted by the police.
“At about 11.20 p.m., a naval Seaking C helicopter, with divers onboard, was launched from Naval Air Station Shikra. The helicopter was able to extract all four stranded men and returned to base by 11.45 p.m.,” the Indian Navy said in a statement.
The rescued men were provided medical check up on arrival by doctor of INS Shikra. The crew was safe and no injury was reported