Kejriwal said although the proposal got a positive response, it is yet to be approved by the Central government.
Delhi Urban Development Minister Satyendar Jain said that the colonies which had applied for regularisation before January 1, 2015, will be eligible, as agreed by both the central and Delhi governments.
Speaking to the media, Kejriwal said that in November 2015 the Delhi Cabinet approved a proposal to grant ownership rights for people living in unauthorised 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 unauthorised colonies in the city.
Kejriwal said the people living in the unauthorised 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 unauthorised colonies had been cheated repeatedly.
"But as soon as we came to power, we decided that we will provide their rights to them."
Kejriwal said he has directed the revenue department to gear up for the same.
"l have directed the revenue department to begin the preparations for the facilitation of large scale registries for all homes in unauthorised colonies across the cities.
"We will set up camps to ensure smooth processing of all registries and whatever else that may be needed to be done. No person should face any trouble to complete their registry," 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.
"I am happy that the dreams 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.
( With inputs from IANS )