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

Dek: The government says DDA is reviewing its residential conversion policy to simplify the process, while pending conversion requests remain on hold.

The Delhi Development Authority (DDA) has put pending requests to convert residential properties from leasehold to freehold on hold while the government reviews the existing policy.

Union minister of state for housing and urban affairs Tokhan Sahu informed the Rajya Sabha about the decision in a written reply. The government said the policy is being reviewed to rationalise the conversion process and make it more citizen-friendly, according to the Times of India. (timesofindia.indiatimes.com)

No specific timeline for completing the review was provided in the parliamentary response cited by the report.

What is leasehold-to-freehold conversion?

Leasehold ownership means a property is held under a long-term lease from the DDA. Conversion to freehold changes the nature of that ownership, according to the Times of India.

For eligible DDA residential properties, conversion is an optional process. It is not mandatory under the existing policy. (timesofindia.indiatimes.com)

Which residential properties are eligible?

The existing DDA scheme covers several categories of residential properties.

These include built-up residential plots, with the exception of plots measuring up to 50 square metres; certain fixed-term residential properties where no premium has been charged; and DDA-allotted LIG, MIG, HIG and SFS flats.

The scheme also covers flats in the Asian Games Village complex and flats constructed by cooperative group housing societies on DDA-leased land, according to the Times of India report. (timesofindia.indiatimes.com)

There are conditions attached to eligibility. The property must not have a title dispute, while the land use specified in the lease or allotment documents must be residential. Applicants must also submit No Objection Certificates from all mortgagees involved. (timesofindia.indiatimes.com)

How much does conversion cost?

Conversion charges under the existing policy vary according to the locality and zone.

Applicants can pay the charges as a lump sum or through annual instalments over a maximum of five years. Instalment payments attract 12% annual interest, and conversion is finalised after all instalments have been paid, according to the Times of India. The report also says the policy does not provide an extension of the instalment deadline. (timesofindia.indiatimes.com)

The application also carries a processing fee of Rs 200.

What does the hold mean for homeowners?

For people with pending conversion requests, the immediate consequence is that their applications are on hold while the policy review continues.

The government has said the review is intended to rationalise and simplify the conversion process. But the parliamentary response cited by the Times of India does not specify when the review will end or what changes will ultimately be made to conversion eligibility, charges or procedures. (timesofindia.indiatimes.com)

That leaves existing applicants waiting for further clarity from the DDA and the housing ministry.

For Delhi homeowners considering leasehold-to-freehold conversion, the key point is that the government is reviewing the policy and pending requests are currently on hold. Any changes to the rules, charges or application process will depend on the outcome of that review.