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Delhi HC seeks answers as L&DO stalls freehold property conversions

#Law & Policy#India#Delhi
Last Updated : 6th May, 2025
Synopsis

The Land and Development Office (L&DO) under the Ministry of Housing and Urban Affairs has suspended the conversion of leasehold properties to freehold in Delhi for over two years, affecting thousands of property owners in prime areas such as Lutyens', South, and Central Delhi. While 34,905 out of 60,526 leased properties have been converted, the process has stalled amid delays in finalizing a revised standard operating procedure (SOP) and updated rates. Property owners have raised concerns over corruption and prolonged uncertainty. The Delhi High Court has intervened, pressing for accountability, and sources indicate the new SOP and rates may be issued within three months to streamline and revive the conversion process.

In a significant development affecting property owners in Delhi, the Land and Development Office (L&DO), under the Ministry of Housing and Urban Affairs, has suspended the conversion of leasehold properties to freehold for over two years. This decision has left thousands of property owners in limbo, particularly in high-value areas such as Lutyens', South, and Central Delhi. A


ccording to the Ministry's annual report for 2020-21, the L&DO manages approximately 60,526 leases of central government land in Delhi, out of which 34,905 properties have been converted into freehold. However, the recent suspension has halted further conversions, causing significant distress among property owners.

The L&DO's decision to halt conversions has been attributed to the need for a revised standard operating procedure (SOP) and updated rates for freehold conversion. Despite earlier commitments to courts, the L&DO has missed several deadlines to implement these changes, leading to increased complaints from property owners. Some owners have alleged that the delay has resulted in corruption, with individuals being asked to pay additional amounts to obtain the mandatory no-objection certificate (NOC) required for property transactions.

In response to these concerns, sources indicate that the L&DO is working on a new SOP and revised rates, which are expected to be introduced within the next three months. The new procedures aim to simplify the conversion process and make it more transparent, addressing the issues that have led to widespread dissatisfaction among property owners.

In an effort to resolve the issue, the Delhi High Court had previously taken cognizance of the delays and sought a personal appearance from the L&DO to explain the situation. The court's intervention underscores the seriousness of the matter and the need for prompt action to address the concerns of property owners.

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