The state government refused to entertain the Railway Board's plea to part with 2.5 acres at Basanti colony on the grounds that the land belonged to the state government. After the fire incident, Mamata visited the area and claimed that the land on which the slum grew belonged to the Railways. She declared that the Railways would build a housing complex for the homeless on the site.

On January 25, senior railway official A K Harit wrote to the state government requesting it to vacate 2.5 acres at Basanti colony on which the Railways wanted to build the complex.

Ashok Bhattacharya, Minister for Urban Development, said: "The Railways can build housing complexes for its own employees but they cannot do so for the general people as such." He also alleged that Mamata was trying to violate the federal spirit.

"In a federal structure, the role of the state and the Central government is well carved out by the Constitution and the law. It is the state government and not the Railways which will build the housing complex for the victims at Basanti colony," said Bhattacharya.