The Delhi High Court has directed the Delhi Development Authority (DDA) to process all pending applications for conversion of properties from leasehold to freehold within two months, citing difficulties being faced by the residents of the national capital.

A Division Bench comprising Justice Prathiba M Singh and Justice Vikas Mahajan directed that all pending applications must be processed in accordance with the policy prevalent on the date of filing the applications.

The Court further directed the Ministry of Housing and Urban Affairs (MoHUA) and the DDA to formulate a policy for processing fresh applications and place it before the Court by the next date of hearing.

“This Court has repeatedly impressed upon the concerned authorities, including MoHUA and DDA, the importance of conversion of properties from leasehold to freehold as also the enormous difficulties being faced by the residents of Delhi. This situation is further compounded in respect of those property owners who have already filed the applications and paid the then prevalent conversion charges, and are now awaiting a decision from the DDA,” the Court said

The directions came after the Bench was informed that the authorities would require at least two more months, and possibly four months, to finalise the policy governing conversion of leasehold properties into freehold properties.

Expressing dissatisfaction with the delay, the Court observed that the said position would effectively bring the conversion process in Delhi to a standstill for an entire year.

“In the opinion of the Court this is completely unacceptable,” the Bench said.

The Court noted that despite repeated directions since July, the authorities had made no substantial progress in finalising the policy. It also expressed dissatisfaction with an affidavit filed by MoHUA, which failed to provide any concrete timeline for finalising the policy.

The matter concerns the non-functioning of the DDA's Interactive Disposal of Land Information System (IDLI) portal, which has remained unavailable since January 02, preventing property owners from submitting applications for conversion.

The Court noted that 1,373 applications for conversion filed between 2020 and 2026 were pending, with the DDA having already collected approximately Rs. 155.06 crore in conversion charges. Of these applications, 308 had received approval, but conveyance deeds had not been executed.

The Bench was not satisfied with the authorities' approach, observing that despite repeated opportunities, they had failed to finalise the policy.

“In the interest of justice, considering that the amounts have already been collected by the DDA amounting to Rs.155.06 crores, this Court deems it fit to direct that all pending applications for conversion of property from leasehold to freehold shall be processed by the DDA, in terms of the prevalent policy as on the date of filing the application,” it ordered.

The Court has now listed the matter for further hearing on December 11. The MoHUA Secretary and DDA Vice-Chairman have been directed to remain present during the next hearing.

The directions were passed in a batch of matters, including a contempt appeal filed by the DDA and petitions concerning delays in the conversion of properties from leasehold to freehold.