Today was the first working day of the AAP government, which called its first Cabinet meeting which passed such directions to different agencies.
In the Assembly poll, the Aam Aadmi Party had promised that no demolition would be carried out in the city if it came to power.
"Government has decided to take a holistic view on the existing policy of carrying out demolitions of houses in residential areas and jhuggies," a senior government official said.
He also said that in case any demolition has already been planned or is in the pipeline, the agency concerned will have to seek prior approval of the urban development minister.
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However, the official clarified that this order will not apply to action taken in pursuance of courts orders.
He also said that the government has intended to complete this review at the earliest.
Two days ago, a group of people had protested outside Kejriwal's home against the demolition of slums in Shahdara in east Delhi.