The Delhi High Court has expressed significant concern over the delayed actions of the Delhi Development Authority (DDA) in processing applications for converting commercial properties from leasehold to freehold status. During a recent session, a division bench consisting of Justice Prathiba M Singh and Justice Vikas Mahajan emphasized that the DDA cannot indefinitely postpone these decisions, which are crucial for property owners.
The Court has instructed the DDA to engage in discussions with the Union Ministry of Housing and Urban Affairs (MoHUA) and the Delhi government to promptly address this issue. Additionally, the vice chairman of the DDA has been ordered to submit a status report and personally appear in court on the next scheduled hearing date, July 30.
This judicial direction emerged while the Court was examining a petition filed by the DDA. The petition challenges prior court orders that directed the DDA to process conversion applications, which were filed by property owners. The originating issue was brought to light by property owners at the DLF South Court Mall in Saket, who filed their conversion applications in 2023. Despite having paid the required conversion fees, these property owners have not seen their property status officially changed, even as the DDA has imposed Goods and Services Tax (GST) charges on them retroactively.
Previously, on December 5, 2025, the High Court had mandated the DDA to address these applications, based on assurances from the applicants that they would fulfill any GST obligations should their petition not succeed. However, due to continued non-compliance by the DDA, property owners had to return to court, leading to further directives on February 11 and March 18 for the DDA to act on the conversion requests. The DDA’s appeal against these instructions resulted in the current court order.
During the proceedings, the Court highlighted that the DDA had put a halt on all conversion applications for several months, describing it as a “serious matter.” This inaction, the Court noted, has significantly disrupted property transactions in Delhi, affecting family settlements, property sales, succession arrangements, and other private dealings. The Court also pointed out that numerous cooperative societies and citizen groups have been voicing their grievances over the DDA’s failure to process conversion applications.
The Court further criticized the DDA for using the non-functionality of its Interactive Disposal of Land Information System (IDLI portal) as a reason to hold back conversion applications. Legal representation for the property owners was provided by advocates Saurabh Seth, Sumer D Seth, Neelampreet Kaur, Abhiroop Rathore, Kabir Dev, and Sukhvir Singh.
