According to Sub-Divisional Magistrate Rajnikanth, these families from Kinoni village here, which was not affected by riots, were living in the make-shift camps set up for the riot victims.
The families, who claim to be affected by communal riots that took place in September, were asked to leave the camps but they refused, he said.
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A case of encroaching on government land has been slapped against them, police said.
Over 60 people were killed and thousands displaced in the riots in Muzaffarnagar and adjoining areas.