Court mandates expeditious processing of 1373 pending applications; DDA collected over Rs. 155 crore in conversion fees.
In a significant ruling, the Delhi High Court has directed the Delhi Development Authority (DDA) to process all pending applications for the conversion of properties from leasehold to freehold within two months. This directive comes after the court noted that the DDA had already collected Rs. 155.06 crore in conversion fees from 1373 applications, which have been in limbo since the DDA's IDLI portal became non-functional in January 2026.
The bench, comprising Justices Prathiba M. Singh and Vikas Mahajan, expressed dissatisfaction with the delay in processing these applications, highlighting the severe prejudice faced by citizens who are unable to sell, settle, or otherwise deal with their immovable properties due to the prolonged suspension of conversion processes. The court emphasized that conversion from leasehold to freehold is a critical aspect of property ownership, allowing citizens to freely transact and manage their properties.
The court's judgment follows a series of hearings wherein the DDA and the Ministry of Housing and Urban Affairs (MoHUA) were criticized for failing to expedite the formulation of a new policy for the conversion process. Despite the MoHUA's request for additional time to finalize the policy, the court insisted that pending applications must be processed according to the policy existing at the time of the application's filing, ensuring no further delay for applicants who have already paid the requisite conversion charges.
Furthermore, the court underscored the necessity for the new policy to apply prospectively, thus safeguarding the interests of those who have submitted applications under the previous policy framework. It also instructed that a comprehensive policy be formulated for future applications and directed key officials from MoHUA and DDA to appear in the next hearing scheduled for December 11, 2026.
The ruling is expected to bring relief to numerous property owners in Delhi who have been waiting for clarity on the status of their conversion applications. The court's decision mandates that the concerned authorities act swiftly and decisively to address the backlog and ensure that property owners' rights are not indefinitely suspended due to administrative delays.
Bottom Line :
Property law - Conversion of properties from leasehold to freehold - DDA IDLI portal remaining non-functional since 2.1.2026 - Large number of pending applications for which conversion charges had already been received by DDA - Held, pending applications must be processed as per policy prevalent on date of filing of application - Authorities cannot keep citizens waiting indefinitely on ground of proposed future policy - Fresh policy for future applications may operate prospectively.
Statutory provision(s):
The judgment primarily revolves around property law concerning the conversion of properties from leasehold to freehold, with references to decisions in related cases and directives to government bodies such as the DDA and MoHUA.
Delhi Development Authority v. Mala Sahni Seth, (Delhi)(DB) : Law Finder Doc id # 2989269
