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The Delhi Development Authority has paused the conversion of leasehold properties into freehold as part of an ongoing policy review. The move has affected new applications, while older cases are still being processed under existing rules. The review, led by the Ministry of Housing and Urban Affairs, aims to revise conversion charges and simplify procedures. The halt has also slowed hearings and support camps, creating delays for property owners and impacting transactions where freehold status is required.
The Delhi Development Authority has temporarily stopped accepting and processing new applications for conversion of leasehold properties into freehold. The decision is part of an ongoing review of the existing policy framework, which is being examined to improve clarity and bring consistency in charges and procedures. Advertisement
The review is being carried out in coordination with the Ministry of Housing and Urban Affairs. Officials indicated that the objective is to rationalise conversion charges and make the process simpler for applicants. They conveyed that a revised policy is expected to be introduced, but no clear timeline has been shared so far.
New applications submitted in recent months have been kept on hold until further directions are issued. However, applications where payments had already been completed before the pause are still being processed under the earlier norms. This has created a two-track situation, where some applicants are moving forward while others remain stuck waiting for clarity.
The delay is also linked to changes in how conversion charges are calculated. The authority has aligned its rates with the revised circle rates notified by the Delhi government. This shift is aimed at ensuring uniformity in land-related charges across categories, but the transition has slowed down approvals as the updated structure is still being finalised.
The halt has also affected on-ground initiatives introduced to speed up the process. Weekly hearings and special camps that were earlier organised to address pending cases and resolve documentation issues have been paused. These measures had helped clear a backlog of applications in the past, and their suspension has again slowed progress for many property owners.
Leasehold properties in Delhi were originally allotted with limited ownership rights for a fixed period, with the land retained by the authority. The option to convert these into freehold, giving full ownership rights including easier sale and transfer, has been available since the early 1990s and has seen steady demand over the years.
In earlier developments, the authority had increased land rates for conversion of commercial and industrial properties by around 10 per cent, while residential rates were kept unchanged. This was done to align charges more closely with market conditions and improve revenue collection.
The current pause has impacted property owners planning transactions, as freehold status is often required for smoother sale and financing. The lack of clarity on timelines has added to uncertainty, with many applicants waiting for official communication on when the revised policy will be implemented.
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