The panel's report will be presented by the HRD Ministry to the Supreme Court tomorrow, which would take a final call about the fate of these institutes.
The report was discussed at the UGC commission meeting here today.
The Supreme Court had earlier this year directed the UGC to examine all the reports of the 41 deemed to be universities and advise the central government.
After the Supreme Court's direction, UGC had set up a committee under vice chairperson of UGC H Devaraj, which heard all the 41 deemed universities separately.
Officials said the commission meeting today took into account the report of the panel and decided to issue showcause notice to the seven universities as to why they should not be denotified.
However, a few officials said the matter would be left to the Supreme Court to decide about the fate of these varsities.