The Centre has decided to extend the moratorium on demolition of illegal constructions and sealing of unauthorised commercial establishments by a year.

An Ordinance, extending the moratorium provided by the Delhi Laws (Special Provisions) Act, 2006, is expected to be notified in the first week of June, official sources said.

The decision to extend the legal cover on demolitions and sealings was taken at a meeting on Tuesday chaired by Urban Development Minister S Jaipal Reddy. The meeting was attended by Minister of State for Urban Development Ajay Maken, Delhi Lt Governor Tejinder Khanna and Chief Minister Sheila Dikshit.

The Ordinance will also extend the legal cover provided by the law to slums, hawkers, and schools and hospitals in residential areas. The law, currently under the scrutiny of the Supreme Court, was notified on May 18 last year with the aim of stopping the court-ordered demolition and sealing drives.

It was hurriedly enacted in the wake of violent protests by traders in the capital against the sealing drive. Both the BJP-ruled Municipal Corporation of Delhi and the Congress government in the capital had urged the Centre to extend the moratorium.

Meanwhile, Maken said the policy guidelines for slums, hawkers and vendors, schools and hospitals, and religious institutions in rural areas are expected to be ready within a year.