The committee submitted its recommendation to Speaker Ramniwas Goel yesterday, after investigating the matter for nearly two-and-half months.
Goel had suspended Sharma in the middle of the winter session in November last year for rest of the session for using derogatory language against AAP MLA Alka Lamba inside the House. Goel had later referred the matter to the Ethics Committee for further probe.
Sources said the Speaker may give a final opportunity to the BJP legislator to apologise for his objectionable remarks.
Earlier this month, Sharma was arrested after he was caught on camera beating a CPI activist in Patiala House Court complex when JNUSU president Kanhaiya Kumar was brought for hearing of the sedition case against him.
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Last week, Sharma had called the move to sack him "an attack on democracy". He had said he had an inkling of such a possibility five months ago as the panel had only AAP MLAs.
"The committee in its several meetings had given Sharma an opportunity to apologise to Lamba, but he refused to do so. Since Sharma refused to apologise, the committee has concluded that his conduct is unbecoming of an MLA," a source said.
In December, the Delhi Assembly had passed a resolution to recover Rs 18,560 from Sharma's salary towards the cost incurred in replacing a mike he had damaged during the Budget Session and warned him not to repeat such action.