The Delhi High Court has given the Delhi Development Authority (DDA), the Ministry of Housing and Urban Affairs (MoHUA), and the Land and Development Office (L&DO) a final opportunity to place a clear policy on record for converting properties from leasehold to freehold.
A Division Bench of Justice Prathiba M. Singh and Justice Vikas Mahajan was hearing a batch of connected matters concerning the DDA’s conversion portal, which has remained unavailable since February 2026. As a result, applications for conversion have remained pending.
Background Of The Case
The proceedings arose from difficulties faced by property owners seeking conversion of their properties from leasehold to freehold. At an earlier hearing, the Court had directed senior officials of MoHUA and DDA to meet and work towards resolving the issue.
A meeting was subsequently held on August 14, 2026. Its minutes recorded discussions about reducing duplicate documents, introducing online verification, simplifying the conversion procedure and reconsidering the existing conversion charges. However, no final policy decision had emerged.
The authorities sought time until December 31, 2026, stating that the various issues required a comprehensive examination.
Court's Observation
The Bench also considered what rates should apply to applications already filed if the authorities later introduce a revised policy.
The Court referred to an earlier decision in Neera Sharma v. Delhi Development Authority, where it was held that, particularly when charges had already been deposited with an application, an applicant could not ordinarily be subjected to subsequently revised rates because of administrative delay.
The Court therefore made it clear that any new policy would ordinarily operate prospectively. For pending applications where payment had already been received, processing would have to take place under the policy applicable at the relevant time.
"Scores of citizens cannot be made to wait for conversion of their properties from leasehold to freehold in this manner."
The Court noted that 1,373 applications were pending, with approximately Rs.155.06 crore already collected by the DDA.
The Bench further observed that even the mechanism for transferring leasehold properties was unclear to the parties appearing before it, despite the meeting minutes stating that such transfers, gifts, inheritance and mortgages were not restrained.
Court's Decision
Expressing dissatisfaction with the progress made since its previous order, the Court said the minutes showed that there was still no clarity regarding documentation requirements or conversion charges.
The Bench granted MoHUA, DDA and L&DO a last and final opportunity to place their final policy on record at least three days before the next hearing.
The matter has been listed for September 28, 2026, and has been directed to be treated as part-heard.
Case Title: Delhi Development Authority v. Mala Sahni Seth & Anr.
Case Number: CONT.APP.(C) 15/2026 & CM APPL. 40235/2026
Judge: Justice Prathiba M. Singh and Justice Vikas Mahajan
Decision Date: September 7, 2026
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