The Delhi High Court has expressed significant dissatisfaction regarding the slow progress made by the Delhi Development Authority (DDA), the Ministry of Housing and Urban Affairs (MoHUA), and the Land & Development Office (L&DO) in formulating a policy to convert properties from leasehold to freehold. The court highlighted that a considerable number of citizens are being left in limbo, unable to have their properties converted in a timely manner.

A division bench composed of Justices Prathiba M Singh and Vikas Mahajan stated they were “clearly not satisfied” with the advancements since a prior order and commented on the meeting minutes which indicated a lack of clarity regarding the policy’s documentation and conversion charges.

In light of these delays, the court provided MoHUA, DDA, and L&DO one final opportunity to present a definitive policy at least three days prior to the next hearing scheduled for September 28. The Secretary of the Department of Capital Development at MoHUA and the DDA Vice Chairman have been instructed to attend the next proceedings.

Pending Applications and Current Issues

The court addressed multiple concerning matters related to the DDA’s portal, which facilitates the conversion of immovable properties from leasehold to freehold. This portal has been inactive since February 2026, causing numerous applications to remain unprocessed.

The bench clarified that any new policy introduced by the authorities must take effect prospectively. It observed that a significant number of applications were still pending, with conversion charges already collected by DDA, yet no processing of these applications was occurring due to the portal’s deactivation.

Previously, the court noted that 1,373 applications remained pending, with DDA having collected Rs 155.06 crore in conversion charges. It ruled that all past applications, for which payments had already been received, must be processed according to the policy in force at the time of application submission.

Recommendations for Streamlining Procedures

The court’s remarks came after the submission of meeting minutes from a discussion held on August 14 among MoHUA, DDA, L&DO, and the Department of Revenue. The minutes revealed that the authorities were considering ways to simplify documentation, streamline procedures, and reassess conversion charges.

In the meeting, officials acknowledged that several required documents were redundant, some were outdated, and that certain information could be verified through online means. They agreed to review documentation requirements and implement online verification wherever possible.

Further discussions also highlighted the need to enhance the conversion process, making it more citizen-friendly by reducing processing times and alleviating compliance burdens on applicants. A comprehensive review of existing conversion charges, which had not been altered for a long time, was also suggested.

Although the authorities requested until December 31 to thoroughly assess documentation, procedures, and conversion charges to establish a comprehensive policy, the High Court expressed doubt about the adequacy of progress to date.

The court noted that while officials claimed the existing policy did not hinder leaseholders from transferring, gifting, inheriting, or mortgaging their properties, none of the lawyers present could elucidate the process for handling leasehold property transfers. Meanwhile, the DDA’s Vice Chairman communicated that consultations were ongoing and that recommendations would be submitted within two weeks. However, the court reiterated its dissatisfaction over the lack of transparency in the matter and demanded a final policy before the upcoming hearing.

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