Summary of this article
DDA puts conversion applications on hold.
Policy review aims to simplify conversion.
Existing eligible properties remain covered.
The Delhi Development Authority (DDA) has put all pending requests for converting leasehold residential properties into freehold properties on hold while the existing policy undergoes review. The Centre informed the Rajya Sabha that the review is aimed at simplifying the process while making it friendly for the citizens. As per a report by the Times of India, Union Minister of State for Housing and Urban Affairs Tokhan Sahu has said in a written reply that the existing DDA conversion policy for residential properties is currently under review. Until this review is complete, cases seeking conversion have been kept on hold.
Leasehold to freehold conversions refer to changing the status of a property where the holder has rights to a property for a long period of time, instead of having complete owner rights.
Which properties are covered?
As per the existing DDA policy, the conversion scheme covers several categories of residential properties. These include built-up residential plots, except small plots measuring up to 50 square metres, as well as fixed-term residential units where no premium has been charged.
The policy also covers DDA-allocated LIG, MIG, HIG, and SFS flats, which include the Asian Games Village complex. The conversion is expected to be subject to certain conditions. The property must be residential, and applicants must also submit a No Objection Certificate in the lease or allotment documents.
How Does The Existing Conversion Process Work?
Under the policy, which is under review, conversion charges can be paid either as a lump sum or through annual instalments over a period of five years. Annual instalment payments carry an interest rate of 12 per cent. Conversion is finalised only after all instalments have been cleared. The policy also states that extensions are not granted for instalment payment deadlines. Applicants are also required to submit prescribed documents along with a processing fee of Rs 200. As per the total amount, the payments can be made through cheques, pay orders, bank drafts, or cash. Cash payments are allowed up to Rs 20,000. Conversion charges are also based on land rates that vary as per locality and zone.
For homeowners who have already submitted a conversion request, the immediate impact is that their applications will remain on hold until the policy review is completed and verified. The Centre has not cited in any way that the review is concluded or when the processing of pending applications will resume. More importantly, the existing policy makes it clear that conversion is not mandatory for all residents; it is an optional scheme for the eligible property holders. The pause to the plan is just a temporary review while the government examines the framework, with the aim of making it simpler and citizen-friendly.
