These colonies include the ones that did not meet the basic criteria of 50% built-up area in 2007 or the colonies that have come up in the ridge area or near historical monuments.
Officials said the decision was likely to benefit lakhs of people living in these unauthorised colonies.
The decision, said government officials, was taken in a meeting between urban development minister Kamal Nath and chief minister Sheila Dikshit. Delhi urban development minister Arvinder Singh, chief secretary DM Spolia and union urban development secretary Sudhir Krishna were present.
While Delhi government had announced regularisation of 895 colonies in 2012 and had initiated the process for another 150, there were technical difficulties in the way of giving the legal tag to 203 unauthorised colonies.
With assembly elections just a few months away, it had written to the centre to relax regularisation norms to ensure that all colonies that were given provisional regularisation certificates ahead of the 2008 elections could be regularised.