The Delhi Laws (Special Provisions) Act, 2006, was enacted against the backdrop of rapid urbanization and population growth in Delhi, which led to significant challenges in urban planning and governance. The Master Plan of Delhi 2001, which was the guiding framework for the city's development, had become outdated due to unplanned migration, unauthorized constructions, and encroachments. The pressure on land and infrastructure resulted in widespread violations of the Master Plan and building bylaws, creating a need for interim measures while a revised Master Plan (2021) was being finalized.
During this period, the Central Government recognized the necessity to address the issues of unauthorized developments, slum dwellings, and street vending in a structured manner. The Act was introduced as a temporary relief measure to halt punitive actions like demolitions and sealing of properties for one year, providing the government time to develop comprehensive policies and strategies for sustainable urban development.

Temporary Relief: The Act provided a breathing space for stakeholders, including residents, businesses, and slum dwellers, by halting immediate punitive actions.
Policy Formulation: It allowed the government time to revise the Master Plan, develop rehabilitation strategies for slums, and regulate street vending.
Legal Framework: The Act balanced the need for urban order with humanitarian considerations, recognizing the socio-economic realities of unauthorized developments.
The Act was initially intended for one year but was extended multiple times through subsequent legislation (e.g., Delhi Laws (Special Provisions) Act, 2007, and later versions), reflecting the prolonged challenges in urban governance. It laid the groundwork for policies like the Master Plan Delhi 2021, the Street Vendors Act, 2014, and slum rehabilitation programs.