The Delhi cabinet had in January given in-principle approval for regularisation of the colonies to pave the way for their development on par with other areas in the city.
Out of the 205 colonies, officials said 157 colonies came up partly on forest land while 48 settlements have encroached the land belonging to Archaeological Survey of India.
The government decided to regularise the colonies after getting clearance from the Forest department and ASI.
The government had in September regularised 895 unauthorised colonies which are home to around 35 lakh people.
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They said Dikshit and Nath also deliberated on "political issues" including assembly polls scheduled for November this year.
Delhi government had issued provisional regularisation certificates to over 1,639 unauthorised colonies ahead of assembly polls in 2008. The then Dikshit government, while distributing the certificates, had promised to regularise the colonies if Congress came to power for a third term.
After Congress' defeat in municipal polls in April, Dikshit had asked all concerned departments to expedite the regularisation process.