Prime Minister Narendra Modi's Hindu-nationalist government has frequently deployed bulldozers and earthmovers to flatten property owned by those facing trial, saying it targets illegal construction and is a firm response to criminal activity.
The Supreme Court, which is hearing a clutch of petitions challenging the campaign, has asked the government to stall the campaign, until the next hearing scheduled on October 1.
In a hearing last week, the court said the practice amounted to "running a bulldozer over the laws of the land".
"Alleged involvement in crime is no ground for the demolition of a property," the judges added.
Rights groups have condemned the tactic as an unlawful exercise in collective punishment, often targeting India's minority Muslim community.
"It can't be demolished even if he's a convict... the demolition can be carried out (only) as per the procedure in accordance with the law," said Justice Bhushan Ramkrishna Gavai, one of the trio of judges hearing the case.
The campaign first started in 2017 in Uttar Pradesh state, governed by Yogi Adityanath, a Hindu monk seen as a potential successor to Modi and a key figure in the ruling Bharatiya Janata Party (BJP).
It has since spread to several other states controlled by the BJP.
Officials say the demolitions are lawful as they only target buildings constructed without legal approval.
But victims of the campaign deny that their dwellings are illegal, and say they are not given the required notice period to dispute demolition orders.
Amnesty International has said that the demolitions were part of a selective and "vicious" crackdown on Indian Muslims who spoke out.