Deputy Chief Minister Manish Sisodia, who announced the compensation for Ravinder's kin, said the amount will be provided from the LG-CM's relief fund.
A senior government official said the deputy chief minister spoke to Lt Governor Anil Baijal before approving the compensation amount.
Sisodia has expressed grief at the brutal incident in which the 32-year-old e-rickshaw driver was beaten to death allegedly by a dozen men after he objected to a few of them urinating outside the GTB Nagar Metro Station in North Delhi on Saturday.
The duo told Ravinder that they would get back at him later, and left the place in another e-rickshaw. They got off near Kirori Mal College.
Around 8 PM, the duo, along with 10 others, returned to the metro station and attacked Ravinder.
Another e-rickshaw driver, who tried to intervene, was also assaulted. Ravinder was rushed to a hospital where he died.