DDA suspends leasehold-to-freehold conversions pending review of charges

NEW DELHI: The Delhi Development Authority (DDA) has temporarily suspended the conversion of properties from leasehold to freehold following directions from the Union Ministry of Housing and Urban Affairs (MoHUA), officials said. The decision comes as the authority undertakes a review of conversion charges in line with recent policy developments.

According to sources, the move follows a decision by the Land and Development Office (L&DO) to adopt circle rates notified by the Delhi government as the basis for determining conversion charges. While L&DO has initiated revisions to its standard operating procedure, the DDA has put the conversion process on hold until revised rates are finalised.

The DDA administers nearly 60,000 properties in the national capital, of which around 35,000 have already been converted to freehold. Conversion of DDA-managed properties had resumed in December 2022 after a prolonged pause, while L&DO had continued to keep its conversion process suspended pending a policy overhaul.

Officials indicated that the DDA is examining the implications of adopting circle rates for fixing conversion charges. Under the existing policy, leasehold properties are eligible for conversion to freehold upon payment of a one-time charge linked to the notified land rates and the size of the property. Conversion charges are calculated primarily on the basis of area, with rebates of 25 per cent to 33 per cent available to original allottees and lessees.

A former senior DDA official noted that freehold status grants absolute ownership rights, enabling property owners to transfer or mortgage their assets without seeking prior approval from the authority. With the process currently suspended, applicants and prospective beneficiaries are awaiting further directions on the revised policy framework and the timeline for resumption of conversions.