Leaders of different political parties and top officials from Delhi attended the funeral at Gevra Mor on Rohtak Road.
Former prime minister Atal Bihari Vajpayee, BJP leaders L K Advani, Rajnath Singh and others were among those who paid tributes to the party vice-president.
Verma's son Parivesh Singh Verma lit the funeral pyre.
Verma, 64, died when the car in which he was travelling in collided with a mini-truck near Khandura 'mode' in Alwar district of Rajasthan, nearly 165 kms from New Delhi.
Verma is survived by his wife, two sons and three daughters.
Meanwhile, the Delhi government declared a holiday on Monday for its offices as a mark of respect to the late former chief minister. But the schools run by the government will function, a Delhi government spokesman said.
The MCD has also declared a holiday for its offices and educational institutions.
Image: Former prime minister Atal Bihari Vajpayee and BJP president Rajnath Singh pay their respects to Verma