The Mumbai homes will go to Rubina Ali and Azharuddin Ismail, who played the younger versions of the movie's central characters, Latika and Salim, in the rags-to-riches romance about a poor Indian boy competing for love and money on a TV game show.

"These two children have brought laurels to the country, and we have been told that they live in slums, which cannot even be classified as housing," said Gautam Chatterjee, head of the state-run Maharashtra Housing and Area Development Authority.

The movie, set in Mumbai, which is part of Maharashtra state, took home eight awards from the Oscars including best picture and best director for Britain's Danny Boyle.

But in the lead-up to Sunday's Oscars, the movie's success around the globe was overshadowed by objections in India to its name, which some Indians find offensive; its depiction of the lives of impoverished Indians; and the treatment of the cast.

There was an outcry after pictures emerged of the child stars living in squalor despite the $15 million movie earning about $100 million since its North American release in November.

But Boyle and producer Christian Colson have flatly rejected claims of exploiting children for the movie.

They said the children were paid above local Indian wages and enrolled in school for the first time with a fund set up to pay for their education, medical emergencies and "basic living costs."

Fox Searchlight Pictures, the specialty division of 20th Century Fox studios that is behind the film, paid for visas, travel and accommodations for nine children who were in the movie to fly to Los Angeles