The decision was taken today at a meeting of the state government officials, NGOs and church leaders.
The meeting, chaired by state home minister R Lalzirliana, emphasised on the need to maintain strict security, uninterrupted education for students of the hamlet and health care for the villagers, an official statement said.
Lalzirliana denied charges that the government was late in providing relief for the victims of the arson, claiming that food and clothes were immediately sent to the area soon after the incident.
He said three platoons of armed police were deployed and free ration would be provided for the victims for two months.
Over 40 houses in Saikhumphai were burnt down by Vaphai villagers alleging that the settlement was illegal.
The incident took place close on the heels of the Gauhati High Court declaring that the settlement was legal on April 26.
Following complaints from Vaphai villagers, the state government had issued an order asking Saikhumphai inhabitants to leave the hamlet by October 31, 2012.
The Aizawl bench stayed the order on November 22 last year and announced its final order on April 26.