The festivities were evident since morning as people were busy decorating their houses with earthen lamps and colourful 'rangolis'.
By afternoon, the celebrations went a notch higher and the houses and shops in the city were at their decorative best as rangolis welcomed guests at their entrances.
By evening, the city was illuminated by beautiful trails of light adorning apartment balconies and as canopies stretched in several residential colonies.
Enthusiastic children did not bother to wait till evening and started bursting crackers since morning.
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Youngsters mostly took to social networking sites to wish a 'Happy Diwali' to friends and some of them even used the platform advising their friends to follow safety norms while bursting crackers.
Police and Delhi Fire Service Department personnel were on their toes to ensure an "incident-free" Diwali, with fire tenders deployed at 20 vulnerable locations in the city including congested areas and key market places in addition to its 56 fire stations.
The top brass of Delhi Police took stock of the security arrangements in various parts of the city and instructed officials wherever and whenever necessary.
Diwali marks the return of Lord Ram to his kingdom, Ayodhya, after 14 years in exile.