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Freehold conversion in Delhi on hold: Here’s what property owners need to know

Interestingly, the halt comes on the heels of another land-owning agency under MoHUA —the Land and Development Office (L&DO) —deciding to adopt the Delhi government’s circle rates to determine its conversion charges.

PWD, dwarka residential complex, indian expressDDA halts leasehold to freehold property conversions after Union ministry directs rate revision review.(Source: File/ Representational)

With a revision in rates in the works, the Delhi Development Authority (DDA) has halted conversion of leasehold properties to freehold on the direction of the Union Ministry of Housing and Urban Affairs (MoHUA), sources in the DDA and the Ministry have confirmed.

When The Indian Express last checked on January 10, the DDA’s online portal for conversion of properties was not functioning.

In case of leasehold, the authority remains the owner of the land, while the allottee holds the property for a specified period — subject to conditions on transfer and use. Freehold denotes absolute ownership of the land and building, allowing transfer or mortgage without prior permission. Usually, the conversion of a property from leasehold to freehold is done before a sale or transfer.

Interestingly, the halt comes on the heels of another land-owning agency under MoHUA —the Land and Development Office (L&DO) —deciding to adopt the Delhi government’s circle rates to determine its conversion charges.

Conversion of L&DO properties from leasehold to freehold has been closed since December 2022, while the agency has been revising the rates and the standard operating procedure (SOP).

Sources told The Indian Express that now that the L&DO has adopted the circle rates, a new SOP would be drafted and conversion would be restarted soon.

The L&DO administers around 60,000 properties on the Centre’s land in Delhi, out of which about 35,000 were converted to freehold by 2021, according to a 2021 CAG report.

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The Delhi government is currently in the process of revising the circle rates, according to government sources.

The L&DO — which announced on January 1 that it would use the circle rates last notified by the Delhi government to determine rates for conversion charges — earlier had its own rates for conversion.

It is expected that conversion of DDA and L&DO properties will begin together when the Delhi government comes up with new circle rates.

Officials from DDA did not respond to requests for a comment.

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A K Jain, former DDA planning commissioner, meanwhile, said: “In the 1970s, when DDA started allotting flats and land, it only allotted them on a leasehold basis. It was only in the 1990s under the P V Narasimha Rao government, which urged for liberalisation, that DDA reviewed its policy and started giving freehold status.” Following this, it was slowly extended to older properties as well, he added.

The rates for conversion of residential properties were last updated in 2011 by the DDA. It had last year approved a 10% hike in land rates for conversion of commercial, industrial, and multilevel parking properties.

According to the DDA’s policy, leasehold plots can be converted to freehold by paying a one-time charge linked to the size of the plot and the officially notified land rate.

Rates depend on the size of a property — with the conversion fee calculated only based on the area beyond specified thresholds. Original allottees and lessees are eligible for rebates of 25%-33% on these charges.

Devansh Mittal is a Correspondent at The Indian Express, based in the New Delhi City bureau. He reports on urban policy, civic governance, and infrastructure in the National Capital Region, with a growing focus on housing, land policy, transport, and the disruption economy and its social implications. Professional Background Education: He studied Political Science at Ashoka University. Core Beats: His reporting focuses on policy and governance in the National Capital Region, one of the largest urban agglomerations in the world. He covers housing and land policy, municipal governance, urban transport, and the interface between infrastructure, regulation, and everyday life in the city. Recent Notable Work His recent reporting includes in-depth examinations of urban policy and its on-ground consequences: An investigation into subvention-linked home loans that documented how homebuyers were drawn into under-construction projects through a “builder–bank” nexus, often leaving them financially exposed when delivery stalled. A detailed report on why Delhi’s land-pooling policy has remained stalled since 2007, tracing how fragmented land ownership, policy design flaws, and mistrust among stakeholders have kept one of the capital’s flagship urban reforms in limbo. A reported piece examining the collapse of an electric mobility startup and what it meant for women drivers dependent on the platform for livelihoods. Reporting Approach Devansh’s work combines on-ground reporting with analysis of government data, court records, and academic research. He regularly reports from neighbourhoods, government offices, and courtrooms to explain how decisions on housing, transport, and the disruption economy shape everyday life in the city. Contact X (Twitter): @devanshmittal_ Email: devansh.mittal@expressindia.com ... Read More

Damini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. Expertise Key Coverage Areas: Damini Nath currently specializes in reporting on two crucial beats: Housing and Urban Affairs: Providing in-depth analysis and reporting on India's urban development, policy, and housing issues. Election Commission (EC): Offering authoritative coverage of electoral processes, policies, and the functioning of India's constitutional body responsible for conducting elections. Professional Background: Her extensive experience includes roles as a reporter and sub-editor, demonstrating a comprehensive understanding of the journalistic process from fieldwork to final production. Previous Role: Before joining The Indian Express in 2022, she served as a dedicated reporter with The Hindu’s national bureau, where her reporting portfolio included: Culture Social Justice Housing and Urban Affairs The Election Commission beat (a consistent area of focus). Trustworthiness Damini Nath's decade-plus career at two of India's most respected and authoritative news institutions, The Indian Express and The Hindu, underscores her commitment to factual, impartial, and high-quality reporting, establishing her as a trusted and credible source for news on urban governance and electoral matters. ... Read More

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