The project will be on a three acre area out of a total of 8 acres which has been released from the families.
Other projects by the UDA have come under fire for making slum dwellers, including poor ones who had been displaced involuntarily through state action to make a 50,000 rupee up front payment to get a 400 square feet house.
But the TATA project will not require the upfront payment.
UDA chairman Nimal Perera said all residents who had lost land and houses will get equal of bigger housing in the apartment block. He said all house owners' consent had been obtained.
A person who had dwelling from 200 to 400 square feet would get a 400 square feet house, those between 400 to 600 will get a 600 square feet house, going up to 1,200 square feet.
TATA Housing chief Brotin Banerjee said they would not get involved in such a project unless the residents were satisfied.
During the two and a half year construction period they are displaced, residents will get a monthly rent allowance ranging from 15,000 rupees to 52,000 rupees based on the floor area they were occupying.The residents collectively will also get 10,000 square feet of commercial space which can be rented to generate money to run condominium services including elevators.
Officials says about two million rupees could be generated by charging a rent of 200 rupees per square feet.
Banerjee said in the mixed development project that will come up in the balance 5 acres of land a high end development will come up.
It will have a 150 room city hotel, 1.1 million square feet of residential apartments, 530,000 square feet of commercial space and 115,000 square feet of retail space.