The action has been initiated against the Rohini and the Peetampura branches of Maxfort School following several complaints against it including violation of rules in admission to candidates from economically weaker sections (EWS), false records and misappropriation of funds, among others.
The school, which has four branches in Delhi, is currently being run by Chadha Educational Society and S Jagat Singh Chadha Charitable Trust.
The Directorate of Education (DoE) had issued show cause notices to the two branches of the school in April this year asking the authorities to respond within days.
"The LG gave his nod last night to take over the school against which there were complaints of violation of the Delhi School Education (DSE) Act 1973 and Right to Education Act (RTE) 2009," a source said.
School authorities were not available for their comment on the issue.
Following complaints from the parents' association, DoE had written to the heads of the two schools in March, asking them to declare results of students whose parents were protesting against fee hike.
According to the report, the school had also failed to maintain the service records and personal files of teachers and did not furnish details relating to salary statements of the staff, attendance registers of the staff and other necessary documents.
The school was also found to have collected capitation fees and the management of the schools had violated section 24 of DSE Act, 1973 according to which every recognised school is supposed be inspected at least once in each financial year which could not be done, due to lack of co-operation from the schools' committees.
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