The Cabinet on Monday approved a proposal that would regularise about 895 unauthorised colonies that have come up till June 1, 2014, Finance Minister Arun Jaitley informed the media here on Monday.

The Cabinet approved the extension of cut-off date for regularisation from March 31, 2002 to June 1, 2014, a statement from the Ministry of Urban Development said.

The move would benefit around 60 lakh people, the Ministry said, adding that under the guidelines of 2007, the Delhi Government has received applications from 1,639 colonies for regularisation. In addition, another 300 unauthorised colonies have come up since March 31, 2002.

The move comes ahead of the Delhi Assembly elections, reportedly being held in February, and will benefit residents of these colonies, who will be able to avail infrastructure, including water, sanitation and electricity.

It will also be easier for an individual interested in buying a house in these colonies to access housing loan facility from banks.

“The Delhi Government also opined that regularisation of unauthorised colonies will bring planned constructions in these colonies under existing building bye-laws and other applicable rules, which in turn, will result in more orderly development of these colonies,” the Urban Development Ministry said.