Milind - are you talking about Mumbai. Your logic seems to be apt for an older and more serious "Israel - Palestine" problem. I wonder why people can think of such issues only when their house is at stake.
Anycase, every person in this country has equal right to work & live anywhere he/she wishes. The very assumption that you consider Mumbai as your "exclusive" home is contentious. I can't believe few poor hawkers from other states as the cause of these problems.
As India is more urbanized, people have to invent themselves to survive. Scapegoating someone for your problems is not a healthy sign.