Speaking to the media, Kejriwal said that in November 2015 the Delhi Cabinet approved a proposal to grant ownership rights for people living in the unauthorized colonies.
"In November 2015, we sent a proposal to the Centre. On Wednesday evening, the Centre gave a positive response," Kejriwal said.
He said the Centre had asked some technical questions, to which the Delhi government would respond in two to three days.
According to the government, there are 1,797 unauthorized colonies in the city.
Kejriwal said the people living in the unauthorized colonies would be allowed to register their houses after the final approval from the Centre.
"The reply from the Centre seemed to be very positive. I want to thank the Central government for the same," Kejriwal said.
The Chief Minister said that people in unauthorized colonies had been cheated repeatedly.
"Bus as soon as we came to power, we decided that we will provide their rights to them."
Kejriwal said he has directed the Registry Department to gear up for the "large number of people coming up for registry".
"I am happy that the dream of the poor are fulfilled. Their living standard was very bad. Our government has spent about Rs 6,000 crore for the development of these colonies," he said.
Asked if the step was taken as the Assembly elections were approaching, Kejriwal said the process was complex and so it consumed time.
He said he does not want to indulge in any blame game over the delay.
( With inputs from IANS )