A bench of justices Badar Durrez Ahmed and Ashutosh Kumar gave the Centre four weeks to take a decision in the matter.
The court did not agree with the Centre's stand that a total station method (TSM) survey of all unauthorised colonies in Delhi was required before a decision could be taken.
The bench said TSM survey was only required for demarcation and agreed with the Delhi government that such an exercise was time-consuming and it may not be possible to complete it for years to come.
Meanwhile, the South Delhi Municipal Corporation (SDMC) placed before the court in a sealed cover, a list of its officials who were on duty in Sainik Farms area from 2001 onwards and who have been prima facie found to be delinquent.
Additional Solicitor General (ASG) Sanjay Jain, appearing for SDMC, assured the court that within four weeks, a list of action taken against these "delinquent" officials and a status report would be placed before the bench.
During the hearing today, central government standing counsel Anurag Ahluwalia told the court that the Centre had in September last year made some queries to Delhi government with regard to the proposal for regularisation but has not yet received any information.
To this, senior standing counsel for Delhi government Rahul Mehra said the Centre has sought details of TSM survey of over 1000 unauthorised colonies in the city and sought directions from the court to expedite the process.
It also asked the Centre what was the requirement for a such a survey when the Union government only had to take an in-principle decision.
Ahluwalia said the detail was sought as the proposal was for regularisation of all unauthorised colonies in Delhi.
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