There were renewed clashes at Dagomba Line in the Asokore Mampong municipality of the Ashanti Region between two gun-toting and machete-wielding rival groups.
Several houses were torched while scores of people from both sides sustained serious injuries.
The victims of the burning of the houses fled the area to seek refuge elsewhere.
Nursing mothers carried their babies on their backs and wailed in the midst of the conflict.
Several properties were destroyed in the clashes.
A joint police and military team was deployed to the slum to restore peace.
The police command in the area arrested about 18 people.
The fresh conflict followed the burning of three rooms and three stalls in the slum by some squatters after they clashed with police officers who were supervising a demolishing exercise per a court order secured by the owner of the land on which the shacks have been built.
Some other properties were also destroyed in the melee.
A group of aggrieved squatters attacked the police officers with sticks, stones and other missiles.
In the heat of the attack, the police retreated and called for reinforcement as fire officers rushed to the area to douse the flames.
Several of the angry squatters were arrested and put in police custody in connection with the Tuesday clash.