The residents had said the goats would be slaughtered elsewhere.
The arrival of two goats at a private housing colony near Mumbai sparked tensions, prompted slogans of Jai Shri Ram and recitals of the Hanuman Chalisa on Tuesday before police intervention managed to bring matters under control.
A police case has now been filed against 11 individuals in connection with the incident, news agency ANI reported.
The incident took place in the Thane district's Mira Road, next to Mumbai, where resident Mohsin Sheikh had brought the animals into his home ahead of the Muslim festival of Bakrid, traditionally marked by the sacrifice of livestock.
The move sparked an uproar among many society members, who subsequently gathered to protest. Protesters chanted religious slogans and recited the Hanuman Chalisa, a Hindu devotional hymn.
"Our society had passed a rule that no livestock would be allowed inside the society, but they violated it and brought two goats inside," one resident told ANI. "We are opposing it and will not allow it."
Police were called to the scene to manage the escalating tensions and encountered a heated exchange with the residents. "We appeal to all to maintain communal harmony and follow the rules of the society," another resident said. Despite the police's intervention, there was a brief clash between the officers and some of the society's members.
Mr Sheikh stated that in previous years, the building's owner had provided space for Muslim families to keep livestock for the festival. This year, however, he was told that there was no space available. He also claimed that he had requested a place within the society to keep his goats but was denied.
With no other option, Mr Sheikh brought the two goats into his home early Tuesday morning. He maintained that the animals were not intended for sacrifice within the society, stating, "We always get the slaughter done elsewhere."
The police informed society members that according to the rules, no sacrifices were permitted within the society, and urged Mr Sheikh to remove the animals in consideration of the sentiments of other residents.
The incident has set off a fierce debate on social media, with a video of the event circulating on multiple platforms. The video shows residents shouting and preventing Mr Sheikh from taking the goats into his home.