The decision by the Lokayukta came after Lt Governor Tejendra Khanna last month asked him to file a final report on the politically sensitive matter for taking appropriate action.
The Lokayukta had earlier sent an interim report to Khanna and recommended issuance of an advisory to the Urban Development department of Delhi government finding it guilty of "en-masse" grant of provisional regularisation certificates to the unauthorised colonies without proper verification.
Last year, a committee, headed by the then Divisional Commissioner Vijay Dev, had found serious wrongdoings in the process of issuance of provisional regularisation certificates (PRCs) and recommended criminal proceedings against those involved in the irregularities. The committee said certain non existent colonies were issued PRCs.
As per norms, unauthorised colonies, which had come up prior to March 31, 2002, and which had 50 per cent built-up area as on February 8, 2007, were eligible for PRCs.
In his interim report to the Lt Governor, Justice Sarin said PRCs were issued without any physical verification of the unauthorised colonies, some of which were "plain" fields. The government is in the process of providing basic infrastructure like roads, electricity and drainage in the colonies.