The Delhi High Court has directed the Delhi Development Authority (DDA) to process pending applications for conversion of properties from leasehold to freehold within two months. The direction comes after prolonged delays faced by property owners who had already submitted applications and paid the required conversion charges.
The court’s order covers 1,373 applications filed between 2020 and 2026. The DDA has already collected Rs 155.06 crore in conversion charges from residents. Of these applications, 308 had received approval, but the corresponding conveyance deeds had not yet been executed.
The case relates to difficulties faced by property owners in getting their leasehold properties converted into freehold properties. The court said applications already pending should be processed according to the prevailing policy. For future applications, the Ministry of Housing and Urban Affairs (MoHUA) and the DDA may formulate a policy governing property conversion.
The court expressed dissatisfaction with the continued delay and the absence of a defined timeline. It noted that property owners who had already submitted applications and paid conversion charges were still waiting for decisions from the DDA.
The issue has been further complicated by the non-functioning of the DDA’s IDLI portal. According to the court, the portal has remained unavailable since January 2, preventing property owners from submitting applications for conversion. This has added to the backlog of cases and increased difficulties for residents seeking to complete the conversion process.
During the proceedings, the secretary of MoHUA indicated that the ministry and DDA could require four months to finalise a policy for leasehold-to-freehold conversion, with two months being the minimum period required. The court, however, said such a delay was unacceptable as it could leave the issue unresolved until December 2026 or January 2027.
The bench also pointed out that the authorities had been given several opportunities to examine the issue and formulate a policy. It observed that orders passed since July 3, 2026 had not resulted in sufficient progress. The court also criticised an affidavit filed by MoHUA for failing to provide a concrete timeline for finalising the policy.
The High Court has now directed the DDA to process the pending conversion applications within two months. The direction is particularly relevant for property owners who have already paid conversion charges but are waiting for their applications or conveyance deeds to be processed.
The court has listed the matter for further hearing on December 11, 2026. The MoHUA secretary and DDA vice-chairman have been directed to join the proceedings on that date. The hearing is expected to provide further clarity on the conversion policy and the steps required to address the pending applications.
