DDA puts leasehold-to-freehold conversions on hold: Which Delhi homes are covered under the policy?

The Delhi Development Authority (DDA) has put all pending requests for converting residential properties from leasehold to freehold on hold while the existing policy is reviewed, the Centre informed the Rajya Sabha. The government said the exercise is aimed at rationalising conversion rates and simplifying the process for property owners.

Pending applications suspended

Responding to a written question in the Rajya Sabha, Union Minister of State for Housing and Urban Affairs Tokhan Sahu said the policy governing conversion of DDA properties was currently under review.

“It is informed that the existing conversion policy in respect of residential properties of the Delhi Development Authority (DDA) is presently under review to rationalise and simplify it so as to make it more citizen-friendly. Pending such review, cases of conversion requests have been put on hold,” Sahu said in his reply.

The conversion process allows a leasehold property, where the owner holds the property from the DDA on a long-term lease, to be converted into freehold ownership. Freehold status gives the holder full and permanent ownership rights over the property.

The government’s review is expected to focus on making the policy more citizen-friendly. However, the information provided does not specify when the conversion process will resume or when a revised policy will be introduced.

READ ALSO: Planning to buy a home in Noida? Property prices have jumped 111% since 2019

Which properties are covered?

According to the DDA’s existing scheme, conversion is available for several categories of residential properties. These include built-up residential plots, except small plots measuring up to 50 square meters, and fixed-term residential properties for which no premium has been charged.

The scheme also covers DDA-allotted low-income group, middle-income group, high-income group, and self-financing scheme flats. Flats in the Asian Games Village complex and properties constructed by cooperative group housing societies on DDA-leased land are also included.

However, conversion is allowed only when the property has no title dispute and the land use mentioned in the lease or allotment documents is residential. Applicants must also submit no-objection certificates from all mortgagees involved.

Charges and payment rules

Conversion charges vary according to the locality and zone. Applicants can pay the amount in one installment or through annual instalments spread over a maximum period of five years, with 12 percent annual interest.

The conversion is finalised only after all instalments have been cleared, and the DDA does not grant extensions for missed instalment deadlines. Applicants must submit the prescribed documents along with a processing fee of Rs 200.

The DDA policy also makes clear that conversion is not compulsory. It remains an optional facility for eligible leasehold property holders, even as the government reviews the existing framework.

READ ALSO: Unsold premium homes surge 43%: Should homebuyers expect discounts now?