Justice Rajiv Shakdher also directed Delhi Metro Rail Corporation (DMRC) to provide all basic amenities, including public toilets, to the residents of the area and to build a wall around their ongoing construction site to prevent children from getting injured.
The court ordered that its directions be complied with in four weeks and listed the matter for hearing on July 9.
It also asked DMRC why it cannot engage the people of the area to work for them on daily wages on the construction being carried out there.
The court had on May 8 directed the authorities, including DMRC, not to evict the slum dwellers at Ghazipur Dairy Farm nor demolish their homes.
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The court was hearing a plea filed by one of the slum dwellers alleging that officials of DMRC have been threatening to evict them and demolish their homes and sought protection from any such move by the authorities.
The petition, filed through advocate Kamlesh Kumar Mishra, has submitted "there are immediate needs of public toilets and Anganwadi Kendra and other civic amenities for the welfare of the economically and socially deprived women and children of the above cluster".
It also claims that they have various proof of residence and identity including ration cards, election ID cards, Aadhar cards, BPL cards and electricity bills.
According to the slum dwellers, who primarily do the work of 'kabaadi', ownership of the land allegedly lies with DMRC.
Phase-IV of DRMC's metro line is expected to go through this area.