The Delhi High Court has given the Centre, the Delhi Development Authority (DDA) and the Land and Development Office (L&DO) a final deadline to prepare and file a policy for converting leasehold properties into freehold, after expressing concern over prolonged delays affecting property owners.
A bench of Justices Prathiba M Singh and Vikas Mahajan directed the authorities to submit the final policy at least three days before the next hearing on September 28. The court also directed the Secretary of the Capital Development Department of the Union Ministry of Housing and Urban Affairs and the DDA Vice-Chairperson to participate in the proceedings on that date.
The directions were issued during the hearing of a petition concerning complaints linked to the DDA portal used for conversion of leasehold properties into freehold. According to the report placed before the court, the portal has been offline since February 2026, preventing the processing of applications submitted by property owners.
The court noted that earlier directions had not resulted in visible progress. It examined minutes of meetings held between officials of the ministry and various agencies and observed that they did not provide clarity on the proposed policy.
The bench said that citizens affected by the policy could not be required to wait indefinitely. It also made clear that any new policy would apply prospectively, or to future cases, rather than altering the basis on which earlier applications were submitted.
The court recorded that 1,373 applications remained pending and that the DDA had collected ₹155.1 crore as conversion charges. It directed that applications for which charges had already been paid should be processed under the policy applicable at the time of payment.
Leasehold-to-freehold conversion gives the property holder permanent and complete ownership of the property and the land on which it stands. The stalled process therefore affects both the administrative status of properties and the ability of applicants to complete transactions linked to ownership records.
The proceedings also place responsibility on multiple public bodies. The Union housing ministry, the DDA and the L&DO are involved in finalising the policy, while the DDA portal is the operational channel through which applications and related complaints are handled.
The authorities are required to file the final policy before the next hearing, with the court scheduled to review the matter on September 28.
