DDA ‘s conversion of leashold properties to freehold halted for review

Vibha SharmaNew Delhi: Delhi Development Authority (DDA) for the last three months has put on hold the process for conversion of properties from leasehold to freehold, leaving applicants in uncertainty.DDA officials said that the current policy is under review by the ministry of housing and urban affairs (MoHUA), with the aim of rationalising rates and simplifying procedures. However, on being questioned, no update came from the ministry on the status of the review.The decision — intended to make the conversion process more transparent and citizen-friendly — has instead led to inconvenience and confusion among applicants, many of whom are awaiting clarity on the revised policy and timeline for resumption.“The existing policy is under comprehensive review at the ministry to rationalise rates and simplify procedures. A more transparent, citizen-friendly policy will be notified shortly. The changes are expected to come into force soon. Citizens are requested to bear with us in the interim,” a DDA official said.DDA originally alotted flats on a leasehold basis. The conversion from leasehold to freehold was introduced in 1992.

Properties on lease from before 1992 were also made eligible for conversion later.The authority was giving properties including flats and land for group housing societies, commercial purposes on lease till 2017. While newer allotments are generally freehold, DDA still facilitates the conversion of older leasehold properties to freehold upon payment of charges.Once converted to freehold, property owners gain full ownership rights.

To expedite disposal of pending cases, the authority had, in Oct last year, begun organising camps for on-the-spot assistance to allottees.The move came after the approval by former lieutenant governor VK Saxena, then the DDA chairman, for a 10% increase in rates for calculating conversion charges for commercial and industrial properties, as well as multi-level parking lots, to boost revenue collection. No changes were made to charges for residential properties.However, DDA stopped its weekly Thursday hearings this year, where leasehold-related cases were being addressed. “It is a setback to those people who were attending these camps or coordinating with officials on long-pending freehold conversion cases,” an applicant said.Among the factors contributing to the delay is the broader policy shift aimed at adopting new land rates and ensuring uniformity in conversion charges.According to an order by DDA’s land disposal department on Jan 9, the authority will adopt the new circle rates notified by Delhi govt for determining conversion charges and other land related fees.The order further stated that fresh applications for freehold conversion would remain on hold with effect from Jan 2 until further directions. But applications received up to Jan 1 — where conversion fees had already been deposited — are being processed at pre-Jan 2 rates.A subsequent order superseded the earlier directive, extending the freeze on fresh leasehold-to-freehold conversion applications, effective from Jan 2. DDA also ordered updates to its interactive disposal of land information (IDLI) portal to reflect the suspension.