A bench of Justices S Ravindra Bhat and Yogesh Khanna issued the direction while hearing a PIL initiated by the high court on the issue of air pollution and its causes.
The bench sought the details to ascertain how the government intends to restore the forests as well as create new ones to achieve the national policy of 33 per cent forest cover.
During the hearing, the bench said that grasslands and shrubs cannot be considered as green cover.
The court sought the details of the action plan by the next date of hearing on May 18.
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The high court on the last date had asked the Comptroller and Auditor General (CAG) to audit the forest department and various agencies on how much timber and money were generated from felling of trees in the city.
The direction was issued by the court as it wanted to know how the timber from felled trees and the money charged for permission to cut them, were being utilised.
The court, however, had not accepted the contention, saying bereaved families have to pay for wood at crematoriums.
It had requested the CAG to also carry out an audit of other agencies, including the three municipal corporations, the New Delhi Municipal Council, the Cantonment Board, Delhi Metro, Northern Railway and the Public Works Department, with regard to the amount of timber and money generated by these authorities on account of felling of trees.