The lifting of the prohibitory orders, which were imposed on August 15 night after Hazare Team refused to give an undertaking that their protest would not exceed three days, came hours after Hazare and government agreed that he will sit on a protest at Ramlila Maidan without any restrictions.
"We have lifted the restrictions," a senior police official said.
Section 144 of CrPC was imposed in some areas of Daryaganj and IP police stations, which include Jai Prakash Narain Park and Shaheed Park.
The areas where prohibitory orders were imposed included Shantivan to Rajghat, Rajghat to Jawahar Lal Nehru Marg, Aruna Asaf Ali Marg to JLN Marg, Delhi Gate to Tilak Marg on Bahadurshah Zafar Marg.
Police had denied permission to Hazare to hold the protest at the park after organisers refused to give an undertaking restricting the number of protest days to three and protestors to 5,000.
Police had detained several people from near the JP Park after they held protests in the area in the past two days.