The Delhi High Court recently took exception to the inaction by Delhi and Central governments in deciding long-pending applications seeking conversion of commercial properties from leasehold to freehold [Delhi Development Authority Vs Mala Sahni Seth & Anr]
In an order passed on September 7, a division bench of Justice Prathiba M Singh and Justice Vikas Mahajan stated citizens cannot be made to wait in this manner.
“Scores of citizens cannot be made to wait for conversion of their properties from leasehold to freehold in this manner,” the Court stated.
The Bench made the observations while hearing a petition filed by the Delhi Development Authority challenging orders passed by the Court at the behest of the property owners to process the conversion applications.
The issue of non-processing of the applications was raised by a few property owners at DLF South Court Mall in Saket. They had applied to DDA in 2023 seeking conversion of their properties from leasehold to freehold.
It was stated that they paid the conversion charges demanded by DDA but the property transfer was not given effect though DDA levied GST on the petitioners retrospectively.
On December 5, 2025, the High Court directed DDA to process the applications based on an undertaking by the petitioners that they would honour the GST demand in the event they did not succeed in the petition.
Due to non-compliance, the property owners again moved the Court, and by orders passed on February 11 and March 18, DDA was again directed to process the applications.
The DDA then challenged these directions.
On the last date of hearing on July 30, the Court had directed the Central and Delhi government to urgently convene a meeting to a formulate a plan on processing pending applications so that DDA's portal which has been on hold since February, can be restarted.
However, on September 7, the Court expressed dissatisfaction after examining the minutes of meeting convened pursuant to previous order.
It stated that no substantive decision was taken in the meeting and there was still no clarity on any policy, simplification of documentation or revising of conversion charges.
“Despite sufficient time having elapsed, there is no positive outcome that the Court has seen even today,” it stated.
The Court eventually granted one last opportunity to the Ministry of Housing & Urban Affairs (MoHUA), DDA and Land and Development Office (L&DO) to place their final policy on record before the next date of hearing.
Further, the Court stated that the new policy would have to be prospective in nature.
With respect to the conversion charges already collected by DDA, the Court clarified that the pending applications will be processed as per the policy prevalent at the relevant point in time.
The matter will be heard next on September 28.
Senior Advocate CM Rao, standing counsel Mrinalini Sen and advocate Gauri Rajput appeared for DDA.
Advocate Urvi Mohan appeared for Registrar of Cooperative Societies.
Additional Solicitor General Chetan Sharma, standing counsel Ashish K Dixit with advocates Umar Hashmi, Ayush Kumar, Government Counsel Rajveer Pandey and Manisha Agrawal Narain appeared for Union of India.
Advocates Saurabh Seth, Sukrit Seth, Neelampreet Kaur, Abhiroop Rathore, Kabir Dev and Sukhvir Singh appeared for the property owners.
[Read order]