The Delhi High Court has expressed strong displeasure over the continued delay in processing applications seeking conversion of commercial properties from leasehold to freehold, observing that property owners cannot be left waiting indefinitely for a decision from government authorities.
A Division Bench of Justice Prathiba M Singh and Justice Vikas Mahajan made the remarks while hearing a dispute involving the Delhi Development Authority (DDA) and property owners, in the case of Delhi Development Authority v. Mala Sahni Seth & Anr.
The Court noted that a large number of citizens were affected by the prolonged inaction.
“Scores of citizens cannot be made to wait for conversion of their properties from leasehold to freehold in this manner,” the Bench observed.
The proceedings arose after several owners of commercial units at DLF South Court Mall in Saket approached the Court over applications submitted to the DDA in 2023 for conversion of their properties.
According to the property owners, they had already deposited the conversion charges sought by the DDA. Despite this, the conversion process was not completed. The dispute was further complicated by the imposition of GST retrospectively.
In December 2025, the High Court directed the DDA to process the applications after the property owners undertook to comply with the GST demand if their challenge ultimately failed.
When the directions were not acted upon, the owners returned to the High Court. The Court subsequently issued further directions in February and March this year requiring the DDA to move forward with the applications.
The DDA challenged those directions.
During an earlier hearing in July, the High Court had directed the Centre and Delhi government to urgently meet and work out a mechanism for clearing the backlog of conversion applications. The Court had also sought a plan that would enable the DDA’s conversion portal, which had remained suspended since February, to resume operations.
However, when the matter came up again, the Bench found little progress.
After examining the minutes of the meeting held pursuant to its earlier directions, the Court observed that no concrete decision had emerged. There was also no clear position on whether documentation requirements would be simplified or whether existing conversion charges would be revised.
“Despite sufficient time having elapsed, there is no positive outcome that the Court has seen even today,” the Bench said.
The Court has now given the Ministry of Housing and Urban Affairs, DDA and Land and Development Office a final opportunity to place a comprehensive policy before it at the next hearing.
The Bench also made it clear that any fresh policy would operate prospectively.
As for conversion charges that have already been collected by the DDA, the Court clarified that pending applications would have to be dealt with under the policy applicable at the relevant time.
The matter has been listed for further hearing on September 28.
