Residents of Kampung Bunga Raya, Kuala Lumpur, have claimed that they were misled.
They were told to move out of their homes after they signed a compensation deal in 1994, Malaysia Nanban reported.
They claimed that they had not received the new houses promised to them when they were given eviction notices on Aug 23.
About 50 of them have lodged police reports alleging that they were duped into vacating their homes to make way for a re-development project by a developer.
The paper said that the residents had been living in longhouses for the past 19 years and were promised that they could move to their new houses by 1995.