The cabinet on Monday decided to allow existing higher educational institutions to operate from lal dora and other non-conforming areas for the academic year 2012-13.
Lal dora is village land where the building bye-laws and construction norms are not applicable.
Delhi chief minister Sheila Dikshit said a decision had been taken to ensure continuity of education. The institutions will have permission to increase the number of courses and the intake of students but no new construction would be allowed, officials said.