Delhi Development Authority vs Mala Sahni Seth & Anr.
- Court
- Delhi High Court
$~6, 30 & 31
* IN THE HIGH COURT OF DELHI AT NEW DELHI
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Date of Decision: 30 July, 2026
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Uploaded on: 31 July, 2026
+ CONT.APP.(C) 15/2026 and CM APPL. 40235/2026
DELHI DEVELOPMENT AUTHORITY .....Appellant
Through: Mr. CM Rao, Senior Advocate with
Mr. Rajeev Lochan Mahunta and Mr.
Sahil S. Panwar, Advocates.
versus
MALA SAHNI SETH & ANR. .....Respondents
Through: Mr. Saurabh Seth, Mr. Sukrit Seth, Ms.
Neelampreet Kaur, Mr. Abhiroop
Rathore, Mr. Kabir Devi and Mr.
Sukhvir Singh, Advs.
Mr. C. Mohan Rao, Sr. Adv. with Ms.
Mrinalini Sen, Standing Counsel for
DDA and Ms. Gauri Rajput, Adv.
Mr. Chetan Sharma, ASG with Mr.
Syed Abdul Haseeb, CGSC for UOI.
30
+ W.P.(C) 9034/2025
KANTA RANI .....Petitioner
Through: Mr. Ashwini Kumar Singh and Ms.
Shruti Singh, Advs.
versus
REGISTRAR OF COOPERATIVE SOCIETIES
& ORS. .....Respondents
Through: Mr. C. Mohan Rao, Sr. Adv. with Ms.
Mrinalini Sen, Standing Counsel for
DDA and Ms. Gauri Rajput, Adv.
Mr. Sameer Vashist Govt. Counsel.
Ms. Urvi Mohan, Adv., Ms. Mahika
Bisht Adv., for GNCTD.
31
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 1 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
+ W.P.(C) 17229/2025
MEENAKSHI AUPLISH .....Petitioner
Through: Mr. Arun Srivastava, Mr. Ashwini
Kumar, Ms. Shruti Singh, Advs.
versus
REGISTRAR OF CO OPERATIVE SOCIETIES
& ORS. .....Respondents
Through: Ms. Urvi Mohan, Adv., Ms. Mahika
Bisht Adv., for GNCTD.
Ms. Satya Jha and Ms. Adya Jha,
Advocates for R-2.
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE VIKAS MAHAJAN
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
2. The issue presently being examined in this matter is in respect of the
self-imposed freeze on conversion of properties from lease hold to free hold
by the Delhi Development Authority (hereinafter, ‘DDA’).
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3. As noted in the previous order dated 3 July, 2026, there are several
cases pending before this Court, wherein grievances have been raised in
respect of properties and flats where conversion applications are not being
accepted and the Interactive Disposal of Land Information System
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(hereinafter, ‘IDLI portal’) of the DDA remains non- functional since 2
January, 2016.
4. Even in respect of persons who have already deposited the conversion
fee on the said portal along with their application, their applications are also
not being processed for conversion.
5. The Court had, in Writ Petition (C) No. 9034/2025 titled ‘ Kanta Rani
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 2 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
vs. Registrar of Cooperative Societies & Ors. ’., directed the Vice Chairman,
DDA to take a decision in an expeditious manner and file a status report.
6. After hearing some submissions, on the last date of hearing, the Court,
in CONT.APP.(C) 15/2026 had observed that consultation between the DDA
and the Ministry of Housing and Urban Affairs (hereinafter, MoHUA’) and
Ministry of Finance (hereinafter, ‘MoF’) ought to be undertaken on an
expeditious basis. The Court observations in CONT.APP.(C) 15/2026 in
order dated 3rd July, 2026, were as under:-
“24. The conversion of properties from leasehold to
freehold in the city of Delhi is an important right
available to citizens, enabling them to freely deal with,
transfer and otherwise transact in respect of their
immovable properties. The DDA cannot be permitted to
keep this issue pending for such a prolonged period,
particularly when nearly seven months have elapsed
without any final decision being taken.
25. The matter would, no doubt, require
consultation amongst the DDA, the Ministry of Housing
and Urban Affairs and the Ministry of Finance,
however, such consultation ought to have been
undertaken and concluded at the highest level with due
expedition.
26. The continued delay from January, 2026 till
July, 2026 in restoring and facilitating the process of
conversion of properties from leasehold to freehold in
Delhi is a matter of serious concern, as it adversely
affects property owners intending to enter into sale
transactions in respect of their immovable properties or
finalise title in respect of their properties.
27. In fact, such delay is also likely to impede
family settlements and other bona fide transactions
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 3 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
involving immovable properties. Accordingly, in the
larger public interest, it is imperative that a final
decision in the matter is taken at the earliest, without
any further delay.
28. Accordingly, it is directed that a decision shall
be taken in an expeditious manner and the Vice
Chairman, DDA shall file a status report as directed in
Writ Petition (C) No. 9034/2025 . Copy of the said
status report shall also be filed in the present matter.
29. The Vice Chairman, DDA shall also remain
present in Court to assist the Court on the next date of
hearing.”
7. On the said date, the Court had directed the Vice-Chairman, DDA, to
file a status report and to also remain present to assist the Court.
8. Today, an affidavit has been filed by the Vice-Chairman DDA, Mr. N.
Saravana Kumar, IAS. He has joined the proceedings virtually. In his
affidavit, it is stated that the online IDLI portal has not been rendered non-
functional on account of any technical malfunction or administrative inaction.
According to him, it is due to a policy decision necessitated in view of
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communication dated 2 January 2026, issued by the MoHUA, (Delhi
Division).
9. As per the said communication, the MoHUA has directed the DDA that
circle rates shall be adopted for the purpose of determination of premium,
auction reserve price, rate for conversion charges, land use charges,
calculation of ground rent, license fee and other land related charges. The said
letter is extracted below:-
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 4 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 5 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
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10. Thereafter, the DDA responded to this letter on 9 January, 2026. In
the said letter, DDA took the following stand :-
“Overall impact on conversion:
17. Adoption of GNCTD circle rates w.e.f. 02.01.2026
for computation of premium and reserve price
introduces uniformity, transparency and automatic
alignment with future revisions. As per the instructions
contained in the policy for freehold conversion issued
by the Ministry vide order dated 14.02.1992 and
subsequent amendments to the said policy, freehold
conversion of residential, commercial and industrial
land is to be done on the basis of a prescribed formula.
The said formula in case of residential land prescribes
differential conversion charges on the basis of the size
of the plot and is contingent upon two variables -'R' and
'P' where 'P' is the plot area in sq mtrs. and R is the Land
rates for residential purposes in rupees per sq. mtr as
notified by the Ministry. The said formula in case of
freehold conversion of Commercial and Industrial land
as prescribed by Ministry's order dated 24.06.2003 is
"Area x Notified land rates on the date of application x
10/100".
18. The directions conveyed vide Ministry's letter dated
02.01.2026 conveying the approval of the competent
authority to the adoption of circle rates, notified by
GNCTD wide notification dated 22.09.2014 inter alia
for determination of the rate for conversion charges,
however, does not specifically state as to whether this
rate for conversion charges would be equal to the circle
rates notified by the GNCTD, or it would be some
factor/percentage of the said circle rates. This aspect
may therefore, require issuance of further instructions
by MoHUA. Therefore, in order to avoid any legal
complications on this count, receipt of fresh
applications for freehold conversion has been put on
hold by DDA w.e.f. 02.01.2026, till further orders on
account of administrative exigencies.
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 6 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
19. However, as per the para 1.18 of the Government
instructions regarding conversion of freehold conveyed
by the Ministry vide letter dated 14.02.1992,
applications for conversion shall be submitted on the
forms prescribed by the agencies administering the
lease and the one-time conversion fee based on a self-
assessment basis as per the formula given in para 1.4
and 1.8 above shall be deposited according to
procedure prescribed by the concerned agency
administering the lease. The date of depositing the
conversion fee of the first instalment thereof shall be
treated as the crucial date for purposes of calculating
the conversion fee. Therefore, the date of depositing the
conversion fee or part there-of is the crucial date from
which the application is reckoned for consideration for
freehold conversion.
20. In view of the foregoing it is submitted that:
a) Premium in respect of government institutional
allotments by DDA would continue to be charged on
existing norms, i.e. NPNL, ZVR or @ Re.1/-.
b) Since-DDA is already using the circle rate as a basis
of determination of auction reserve price in case of
auction of Institutional, Commercial, Residential and
Industrial Land, the present dispensation would
continue for all future auctions.
c) The reserve price for auction of institutional land for
socio-cultural and religious purposes is based on ZVR
as such uses are unique and different from health and
educational use and hence, as such the determination of
reserve price for such use would continue on ZVR.
d) The existing mechanism of fixation of premium on the
basis of PDR wherever applicable would continue.
e) As regards determination of the other land-related
charges wherever applicable, the exercise would
require a detailed and critical examination with respect
to the applicability as and when the need for
determination of such charges arise. 1
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 7 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
f) Receipt of fresh applications for freehold conversion
has been put on hold by DDA w.e.f. 02.01.2026, till
further orders on account of administrative exigencies.
All applications received upto 01.01.2026 in which the
conversion fee has been deposited, would continue to be
processed further for freehold conversion at the rates
applicable prior to 02.01.2026.
This issue with the approval of Vice Chairman, DDA”.
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11. Again, the DDA, on 19 January, 2026 issued an Office Order whereby
the directions of the MoHUA were adopted with effect from 2nd January,
2026. The same was communicated to the MoHUA in the following terms:-
“3. In view of the above, it is here by directed that the aforesaid
directions as conveyed by Ministry’s letter dated 02.01.2026
shall be adopted and come into force in DDA with effect from
02.01.2026.
4. Receipt of fresh applications for freehold conversion has
been put on hold by DDA w.e.f. 02.01.2026 till further orders, on
account of administrative exigencies.
5. Determination of premium of leases on the basis of Pre-
determined Rates (PDR) shall continue where ever applicable.
6. The existing mechanisms for disposal of institutional,
commercial, industrial and residential land/flats, whether by
auction or by allotment, on the basis of freehold, leasehold and
license, shall continue.
7. DDA’s earlier order no. F.1(Misc.)(Coord/2026/395
dated 09.01.2026 issued in this regard, stands hereby
superseded. ”
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12. After the above communication of 19 January, 2026, the stand of the
DDA is that it has been actively engaged with the MoHUA for finalization of
the conversion charges.
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13. The next letter has been sent by the DDA on 14 July 2026, wherein,
in effect, the DDA sought permission from the MoHUA for processing of
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applications received till 1 January, 2026 in the following terms:-
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 8 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
“5. Applying revised circle-rate-based conversion
charges to applications that were received prior to
02.01.2026, while similarly placed applicants whose
applications were filed earlier have already been
granted freehold rights on the prevailing/provisional
rates, would result in unequal treatment and disparity
among similarly situated applicants. Such differential
treatment may give rise to grievances and litigation, as
the applicants had applied under the policy framework
and rate structure prevailing on the date of their
applications.
6. Further, it is pertinent to mention here that DDA has
already apprised its similar view in detail vide Para 17-
19 of even letter no 396 dated 09.01.2026. (copy
enclosed)
7. In view of the above, applications for freehold
conversion received up to 01.01.2026 may be processed
on the basis of the rates/policy applicable on the date
of receipt of the application, consistent with the long-
standing practice followed under the 1992 Conversion
Policy and the principle of maintaining parity amongst
similarly placed applicants.
8. This is issued with the approval of Vice Chairman,
DDA.”
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14. This has been followed up with a letter dated 20 July 2026, wherein
further communication has been addressed for obtaining a decision from the
MoHUA.
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15. Finally, a letter dated 29 July 2026 has been placed on record, wherein
it has been communicated to the DDA by the MoHUA as under:-
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 9 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
16. The above correspondence would, show that after January, 2026, only
recently, correspondence has taken place between DDA and MoHUA in view
of the orders being passed by the Courts.
17. The data which has now been placed on record by the DDA would show
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 10 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
that there are a total of 1373 conversion applications filed between 2020-2026,
which were filed prior to the IDLI portal being pulled down. Out of the 1373
applications, in respect of 308 applications, the approval for conversion has
also been granted but conveyance deeds are not being executed.
18. The total conversion charges which have been collected by the DDA
from the applications filed from 2020-2026 are Rs.155.06 crores. The said
1373 applications which are pending, are substantial in nature for the last 6
years.
19. The IDLI portal, which enabled applications to be filed online and
payments to be accepted online has been pulled down by the DDA in view of
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the communication of the MoHUA dated 2 January, 2026. The DDA has,
on its own, written letters to the MoHUA. However, it appears that no decision
is forthcoming.
20. In view of this position, the Court has also interacted with Vice-
Chairman DDA, Mr. Saravanan Kumar, IAS, who has informed the Court that
there is active consultation going on between DDA and MoHUA and there is
a possibility of a decision in the near future.
21. It is a matter of which judicial notice can be taken that in the MoHUA,
a separate division has been carved out called the ‘Delhi Division’ which has
to exclusively deal with issues relating to development in Delhi.
22. Hundreds of immovable property owners in Delhi have applied for
conversion and have, in fact, paid the necessary conversion fee as per the
prevalent policy at the relevant time. Their applications have been put on hold
and there is no clarity as to when the decision in respect of the conversion
charges would be taken and as to when the DDA would be able to restart the
IDLI portal.
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 11 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
23. Vice-Chairman DDA, Mr. N. Saravana Kumar, IAS, who has joined
the proceedings virtually is unable to give any timeline in this respect.
24. Under these circumstances, this Court is of the view that when a
substantial amount of money of more than Rs.155 crores has been collected
by the DDA, putting on hold even existing conversion applications would be
completely unjustified.
25. As observed earlier, conversion of a property from lease hold to free
hold is an important aspect of ownership. There may be citizens who may be
requiring funds urgently by selling off their properties. There may also be
many senior citizens, who may be wanting to dispose of their properties and
many family settlements which may be held up because of such conversion.
These aspects cannot be ignored by the authorities.
26. Hence, both, the DDA and the MoHUA, as observed on the last
occasion, ought to sit together and arrive at a decision as to what are the
conversion charges to be paid and in any case, in respect of charges already
collected, there has to be clarity, since the citizens cannot be left in the lurch.
27. Accordingly, it is directed that Ms. D. Thara, Secretary, Department of
Capital Development, Ministry of Housing and Urban Affairs, New Delhi,
shall hold an urgent meeting with the officials of the DDA, as also any other
relevant officials including MoF in order to communicate the Ministry's
decision on conversion charges so that the DDA can expeditiously open the
IDLI Portal for conversion.
28. Considering the long pending nature of such an important issue, the
Court has requested the ld. Additional Solicitor General, Mr. Chetan Sharma
to assist the Court and communicate this order to the concerned Authorities.
29. The meeting shall be held between the Secretary, Department of Capital
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 12 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58
Development, MoHUA and DDA as also any other Ministries as may be
required by the Secretary, Department of Capital Development, MoHUA, on
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10 August, 2026 at 3 pm .
30. If any further meetings are required, the same shall be held on a day-
to-day basis and a comprehensive joint report shall be placed on record by
MoHUA, Delhi Division and the DDA as to the manner in which the
conversion applications would now be processed and the charges that would
be required to be paid.
31. Both Ms. D. Thara, the Secretary, Ministry of Housing and Urban
Affairs, Delhi Division and Vice-Chairman DDA, Mr. N. Saravana Kumar,
IAS shall join the proceedings on the next date of hearing, either physically
or virtually to assist the Court.
32. The documents filed on behalf of DDA are taken on record.
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33. List on 7 September, 2026 at 3.pm
PRATHIBA M. SINGH, J.
VIKAS MAHAJAN, J.
JULY 30, 2026/MR/SS
CONT.APP.(C) 15/2026, W.P.(C) 9034/2025 & W.P.(C) 17229/2025 Page 13 of 13
Signature Not Verified
Digitally Signed
By:DHIRENDER KUMAR
Signing Date:31.07.2026
18:02:58