Facts
The proceedings concerned the DDA’s suspension of conversion of properties from leasehold to freehold and the consequent non-functioning of its Interactive Disposal of Land Information System (IDLI) portal since 2 January 2026.
Source reference: paras. 2–4The DDA stated that the suspension followed a Ministry of Housing and Urban Affairs (MoHUA) communication directing adoption of circle rates for determining conversion premiums and other land-related charges.
Source reference: paras. 8–11The DDA claimed that uncertainty regarding the applicable conversion formula justified placing fresh applications on hold, although applications filed up to 1 January 2026, with conversion fees deposited, were to be processed at the pre-existing rates.
Source reference: para. 10Despite the Court’s earlier direction dated 3 July 2026 for an expeditious decision and a status report, the issue remained unresolved.
Source reference: paras. 5–7The record showed 1,373 pending conversion applications filed between 2020 and 2026, including 308 cases where conversion approval had been granted but conveyance deeds remained unexecuted.
Source reference: paras. 17–18The DDA had collected approximately ₹155.06 crores in conversion charges.
Source reference: paras. 17–18The DDA and MoHUA had exchanged correspondence, but no final decision had been communicated regarding the applicable conversion charges or reopening of the IDLI portal.
Source reference: paras. 12–16, 19–23Issues
Whether the DDA was justified in keeping the IDLI portal non-functional and suspending the processing of leasehold-to-freehold conversion applications because of the unresolved issue concerning the applicable conversion charges?
Source reference: paras. 2–4, 8–11, 24–26Whether applications for conversion in which fees had already been deposited, and approved applications awaiting execution of conveyance deeds, could be kept indefinitely pending without a final administrative decision?
Source reference: paras. 17–18, 22–26Whether MoHUA and the DDA were required to urgently determine the applicable conversion charges and the manner of processing pending applications in the public interest?
Source reference: paras. 26–30Law Applied
The Court applied the administrative-law principles of fairness, reasonableness, expeditious decision-making and protection against arbitrary administrative delay.
Source reference: paras. 24–26It recognised conversion from leasehold to freehold as an important incident of property ownership, enabling owners to transfer, sell and otherwise deal with their properties.
Source reference: paras. 24–27 of the order dated 3 July 2026; paras. 24–26The Court also relied on the applicable 1992 freehold-conversion policy, under which the date of deposit of the conversion fee or its first instalment is the crucial date for calculating the conversion fee.
Source reference: para. 10The principle of parity among similarly situated applicants was relevant, particularly where applications had been submitted under the policy and rates prevailing on the date of application.
Source reference: para. 13No specific statutory provision or judicial precedent was cited in the order.
Source reference: no citationReasoning
The Court found that the DDA’s concern regarding ambiguity in the circle-rate-based formula could not justify an indefinite suspension of the conversion process.
Source reference: paras. 24–26The DDA had already accepted substantial sums from applicants and had pending applications extending over several years.
Source reference: paras. 17–18Keeping even existing applications on hold, particularly after collecting approximately ₹155.06 crores and granting conversion approval in 308 cases, was held to be “completely unjustified”.
Source reference: para. 24The Court emphasised that the delay adversely affected property transactions, urgent financial needs, senior citizens, family settlements and the ability of owners to establish or deal with title.
Source reference: para. 25Since the DDA and MoHUA had not produced any definite timeline or final decision, the Court directed institutional coordination at the appropriate administrative level rather than permitting continued uncertainty.
Source reference: paras. 26–30Holding
The Court held that the continued suspension of the leasehold-to-freehold conversion process and the indefinite withholding of pending applications were unjustified in the circumstances.
It directed Ms. D. Thara, Secretary, Department of Capital Development, MoHUA, to convene an urgent meeting with DDA and other relevant officials, including the Ministry of Finance, on 10 August 2026 at 3:00 p.m. to finalise the conversion charges and enable the DDA to reopen the IDLI portal.
Source reference: paras. 27–29Any further meetings were to be held on a day-to-day basis, followed by a comprehensive joint report explaining the processing mechanism for pending applications and the charges payable.
Source reference: para. 30The Secretary, MoHUA, Delhi Division, and the Vice-Chairman, DDA, were directed to join the next hearing to assist the Court.
Source reference: para. 31The matters were listed for 7 September 2026.
Source reference: para. 33Original Court PDF
Delhi Development AuthorityvsMala Sahni Seth & Anr.
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