Lokayukta Justice Manmohan Sarin, in his order, said evidence pointed towards involvement of N Raja, the then councillor of the area, in digging of the pit without prior approval and putting in place any safety cover.
Two minor children Arshad (4) and Armaan (8), both residents of Shakurpur, had gone missing on November 25 and their bodies were found in the pit a week later.
Holding Raja guilty for the mishap, the Lokayukta has recommended to the Lt Governor to issue an advisory to him to be careful in discharge of his public duties in future.
In his deposition, Raja had rejected allegations that he was involved in digging of the pit.
The Lokayukta said evidences clearly suggested that the pit had been dug up at the instance of the then councillor and it remained uncovered which led to death of the two minor children.
To prevent recurrence of such incidents and to maintain accountability, Justice Sarin also suggested introduction of "Constituency Visit Instructions Book" in the wards with a view to ensure that proper records about oral instructions are kept.
The Lokayukta had taken suo motu cognisance of a media report on the incident.