The British filmmaker flew out to Mumbai to help after the nine-year-old's family was forced to leave their shanty town when it was demolished.
Danny said he hoped a new home could also be found for Rubina Ali - who was also left homeless after authorities razed her house - before the monsoon rains in June. The £33,000 apartment bought for Azharuddin and his family is near to the boy's school.
"They were given access to a world, an extraordinary and glamorous world, and they understandably want their lives to be completely transformed," he said of the children, who attended the Oscars ceremony in LA in February.
Shortly after the film wrapped, Danny, 52, and producer Christian Colson set up the Jai Ho Trust, founded wtih the aim of helping the children financially until they turned 18.
"The homes are a concern. That is one of the reasons why we built the trust," explained the Lancashire-born director.
Both the children were reportedly promised new homes by the state housing association in February, but Rubina's father said they hadn't heard anything further from the organisation.