The Vadodara Municipal Corporation (VMC) is set to raze around 140 houses and 25 shops that came up on a plot owned by the civic body in the Sayajipura.
The corporation is planning to construct a housing scheme for the economically poor at the site.
VMC officials said that the plot in Sayajipura was reserved for housing purpose, but it has encroached for several years now.
The houses and shops were even sold by persons there through agreements on stamp papers despite the fact that they were not the rightful owners.
VMC officials said that a survey of the houses had been completed and video recording of the site was done on February 4.
The housing department of the civic body had also prepared a detailed project report for a housing scheme for the urban poor there under the Pradhan Mantri Aavas Yojana.
Officials said that the project had been cleared and 470 houses will be constructed at the site.
Sources said that the process of issuing notices to get the houses at the site vacated would begin soon. Following this, the VMC will be taking up a razing drive to clear the plot and begin construction of houses there.