A bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar directed the DDA and the Delhi Police to maintain "strict status quo" in the West Delhi colony with regard to 53 slums.
It said the Delhi Development Authority (DDA) shall strictly ensure that these 53 structures are not demolished or damaged till further order of this court.
The bench directed the authorities to communicate their decision to the residents within one week.
It also made clear that so far as other 95 jhuggis are concerned, no person shall be permitted to occupy them.
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Spread over an area of around 14 acres, the Kathputli Colony is home to a large number of puppeteers, magicians, singers and musicians.
"It shall be open for the DDA to fix markings on such jhuggis and to seal the same," the bench said, adding that it would appoint an observer who will be present at the site during the demolition drive.
The counsel for the NGO even alleged that despite the order of the high court, the DDA was demolishing structures of the people who were yet to appeal and establish that they were eligible for relocation.
The counsel said that the developer of the site had deployed goons who were not allowing the residents to stay and forcefully evicting them. They are hand-in-gloves with the DDA and other agencies, so that the land is vacated at the earliest, he alleged.
This allegation was refused by DDA's counsel Ajay Varma, saying they have been "faithfully abiding" by the directions made by the court on October 31 and November 1.
The bench also objected to the allegations that DDA was hand-in-gloves with the developers in the demolition drive, saying "it is for us to satisfy that everything is in place. We will ensure that human rights are not violated".
"We will take a strong action against anybody who has breached our orders," it said, adding that "it was our concern over right to life, so we have taken up this issue."