The parents unanimously rejected the move and appealed to President Bola Tinubu to reconsider the approval.
NiDCOM also announced various financial support packages for the returnees.
The state government noted that taking such responsibility would also enhance security and sustain property value.
The police said the suspects were allegedly involved in terrorising residents of the Apapa, Ijora and Badia areas of the state.
The residents said constant rainfall had triggered devastating flooding in the area.
The Accord chairman expressed disappointment with the judgment.
Mr Osiyemi said the initiative would simplify and speed up vehicle registration by eliminating cumbersome processes.
The LCDA chairman said the reconstruction aimed to reposition the Morogbo market into a modern commercial hub.
The EFCC amended the charge against the suspect and his company after he opted for a plea bargain midway through the trial.
Lagos residents count losses as rain floods homes across several communities in the state.
