NEW DELHI: The Delhi Development Authority (DDA) has suspended the conversion of properties from leasehold to freehold for the past three months, causing uncertainty for applicants.
DDA officials confirmed that the ministry of housing and urban affairs (MoHUA) is currently reviewing the policy to rationalize rates and streamline procedures. However, no update on the review status has been communicated.
The decision, aimed at enhancing transparency and making the process more user-friendly, has instead resulted in confusion for many applicants who are waiting for clarity on the new policy and expected timelines.
A DDA official stated, “The current policy is undergoing comprehensive review to rationalize rates and simplify procedures. A more transparent and citizen-friendly policy will be issued shortly, with changes expected to take effect soon. We appreciate your patience during this period.”
The DDA initially allocated flats on a leasehold basis, and the conversion to freehold was introduced in 1992, later applying to properties leased before that year.
Until 2017, the authority leased properties, including flats and land for group housing societies and commercial use. While newer allotments are typically freehold, DDA continues to allow the conversion of older leasehold properties to freehold for a fee.
Once converted to freehold, property owners gain full ownership rights. In October, the DDA initiated camps for on-the-spot assistance to help expedite pending cases.
This initiative followed the approval by former lieutenant governor VK Saxena for a 10% increase in conversion charges for commercial and industrial properties, as well as multi-level parking lots, to enhance revenue. No changes were made for residential properties.
However, the DDA halted weekly Thursday hearings this year, affecting those who were attending these sessions for updates on their freehold conversion requests. An affected applicant remarked, “This is a setback for many who were engaging with officials regarding their pending cases.”
Factors contributing to the delay include a broader policy shift aimed at updating land rates and ensuring consistent conversion charges.
According to a directive from DDA’s land disposal department dated January 9, the authority will adopt new circle rates announced by the Delhi government for calculating conversion charges and related fees.
The directive noted that fresh applications for freehold conversion would remain on hold starting January 2 until further notice, but applications submitted before that date—where conversion fees had already been paid—will be processed at pre-January 2 rates.
A subsequent order extended the hold on new leasehold-to-freehold conversion applications from January 2. The DDA also mandated updates to its Interactive Disposal of Land Information (IDLI) portal to reflect this suspension.
