An apex court Bench, headed by Justice Arun Mishra, asked the Chief Secretary to appear and answer certain queries, like under what provisions the government had framed the policy.
The Delhi Development Authority's counsel told the court the policy had been finalised but yet to be notified.
The government formulated the policy to solve lack of space for social events, including marriages. Earlier, the top court had directed formulation of a policy for holding social functions in motels, hotels and farmhouses.
The government said the policy provided "accountability and penalties" for non-compliance of its provisions. "This policy is in the larger public interest as there is scarcity of places to hold social functions, like marriages, and people are put to great inconvenience," the government said.
The policy would go a long way in mitigating the difficulties, and the people of Delhi would be the ultimate beneficiary, it said.
According to the policy, periodical inspections of places marked for social functions would be conducted appropriate agencies. The number of guests and parking space available will have to be displayed at the entrance and no parking be permitted on the roadside.
The policy restricts playing of loudspeakers after 10 p.m, stresses fire clearance, and sufficient arrangement for water supply during the functions.
The owner, organiser or caterer must have the necessary permission, including the Food Safety and Standards Authority of India (FSSAI) licence, to run kitchen. The place should also be registered with some NGO to manage leftover food and that should be distributed to underprivileged.
( With inputs from IANS )