DDA puts leasehold-to-freehold conversions on hold: What Delhi homeowners need to know

The existing conversion policy for residential properties of the Delhi Development Authority (DDA) is currently under review, with the government aiming to rationalise and simplify the process to make it more citizen-friendly, the Centre informed the Rajya Sabha on Monday.Responding to a written question, union minister of state for housing and urban affairs, Tokhan Sahu, said that all pending conversion requests have been put on hold while the review is underway."It is informed that the existing conversion policy in respect of residential properties of 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," the minister said in his reply.Conversion refers to the process by which a leasehold property, where the owner holds the property on a long-term lease from DDA rather than owning it, is converted to freehold status, giving the holder full and permanent ownership rights.What the existing conversion policy saysAccording to DDA, the scheme currently covers a range of properties, including built-up residential plots (barring small plots up to 50 sqm), fixed-term residential properties where no premium has been charged, LIG, MIG, HIG and SFS flats allotted by DDA, including those in the Asian Games Village complex, and flats built by Co-operative Group Housing Societies on DDA-leased land.Conversion applies only to properties that do not have a title dispute, and where the land use specified in the lease or allotment documents is residential. It is allowed only after submission of No Objection Certificates from all mortgagees involved.Conversion charges can be paid either as a lump sum or in annual instalments over a maximum of five years, with 12 per cent annual interest. Conversion is finalised only after all instalments are cleared, and no extensions are granted on instalment deadlines.Applicants are required to submit prescribed documents along with a processing fee of Rs 200, with charges payable via cheque, pay order, bank draft, or cash for amounts under Rs 20,000. Land rates for conversion charges vary by locality and zone.The policy, currently on hold, clarifies that conversion is not mandatory. It remains an optional scheme for eligible property holders.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.