Court expresses concern over delay caused by DDA’s offline portal and mandates processing of pending applications as per policy prevailing at application time
In a significant judgment on September 7, 2026, the Delhi High Court (Division Bench comprising Justices Prathiba M. Singh and Vikas Mahajan) addressed the prolonged delay in converting leasehold properties to freehold status by the Delhi Development Authority (DDA). The issue arose due to the DDA’s online portal for processing conversion applications being taken offline since February 2026, resulting in the stalling of over 1,300 pending applications with Rs. 155.06 crores already collected in conversion charges.
The Court took cognizance of the administrative inertia and lack of substantive policy decisions by the Ministry of Housing and Urban Affairs (MoHUA), DDA, and the Land and Development Office (L&DO), despite their meeting held on August 14, 2026. The minutes of this meeting revealed discussions on simplifying documentation requirements, rationalizing and streamlining the conversion process, and revising the structure of conversion charges, which had remained static for a considerable period.
Highlighting the citizens’ right to timely property conversion, the Court expressed dissatisfaction with the absence of clarity and finality in policy formulation. The Court emphasized that while a comprehensive policy overhaul is underway, all pending applications for conversion must be processed according to the policy that was in force at the time of filing the application. This approach was reinforced by reliance on the precedent set in Neera Sharma vs. Delhi Development Authority (W.P.(C) 5180/2012), which held that conversion charges applicable at the time of application should be honored, especially when charges have already been paid.
The Court granted the authorities time until December 31, 2026, to finalize a holistic policy encompassing simplification of documentation, procedural rationalization, and revision of conversion charges. The DDA, MoHUA, and L&DO were directed to collaborate closely, with the DDA and L&DO actively consulting to submit their recommendations within two weeks from the hearing date. The Court also ordered the final policy to be placed on record at least three days prior to the next hearing scheduled on September 28, 2026.
Additionally, the Court noted with concern the absence of a clear mechanism for leaseholders to transfer, gift, inherit, or mortgage their properties during this period of policy ambiguity, directing the authorities to clarify these procedural details expeditiously.
This judgment underlines the judiciary’s intervention to uphold the rights of property owners amidst bureaucratic delays and ensures that administrative processes are citizen-friendly, transparent, and efficient.
Bottom Line:
Delhi Development Authority's (DDA) delay in processing conversion of properties from leasehold to freehold due to portal unavailability - Court directs DDA, MoHUA, and L&DO to finalize a comprehensive policy for simplification of documentation, rationalization of the conversion process, and revision of conversion charges. Pending applications must be processed per the policy in effect at the time of application filing.
Statutory provision(s):
Delhi Development Act and associated property conversion regulations.
Delhi Development Authority v. Mala Sahni Seth, (Delhi)(DB) : Law Finder Doc Id # 2976006
