After collecting ₹155 crore, DDA told to urgently resolve freeze on 1,373 Delhi property conversion applications

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.

The 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.

The 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.

Despite the Court’s earlier direction dated 3 July 2026 for an expeditious decision and a status report, the issue remained unresolved.

The 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.

The DDA had collected approximately ₹155.06 crores in conversion charges.

The DDA and MoHUA had exchanged correspondence, but no final decision had been communicated regarding the applicable conversion charges or reopening of the IDLI portal.

The Court applied the administrative-law principles of fairness, reasonableness, expeditious decision-making and protection against arbitrary administrative delay.

It recognised conversion from leasehold to freehold as an important incident of property ownership, enabling owners to transfer, sell and otherwise deal with their properties.

The 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.

The 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.

No specific statutory provision or judicial precedent was cited in the order.

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.

The DDA had already accepted substantial sums from applicants and had pending applications extending over several years.

Keeping 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”.

The 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.

Since 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.

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.

Any 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.

The Secretary, MoHUA, Delhi Division, and the Vice-Chairman, DDA, were directed to join the next hearing to assist the Court.

The matters were listed for 7 September 2026.