The conversion policy takes precedence over the terms of the perpetual lease, and the authority cannot charge unearned increase from the petitioner.

VIPIN SANGHI, J.

1. The property bearing No.A-68, Shivalik, New Delhi admeasuring 218 sq.yds i.e. about 180.27 sq. mtr. (the said property) was perpetually leased out in favour of Shri S.K.Bajaj, son of Shri Devi Das vide perpetual lease deed dated 20.11.1990 executed by the Rehabilitation Division. Shri S.K.Bajaj executed a General Power of Attorney in favour of the petitioner on 13.01.1992. He also executed his last will in respect of the said property in favour of the petitioner. The possession of the property was handed over to the petitioner by Shri S.K. Bajaj. Thereafter, the petitioner raised construction of a residential house and since then she has been living therein with her family.

2. The respondent came out with a policy for conversion from leasehold rights into freehold rights in respect of residential plots admeasuring upto 500 sq.mt. In the “Introduction” of the said policy, the Govt. stated as follows:-

“Considering the long pending demand from the public for converting the lease hold system of land tenure into freehold, the Govt. have decided to sanction the conversion to freehold in respect of purely residential leases of all flats/tenements and built up plots upto 500 sq. meters of area and the orders conveying the sanction of the President of India for such conversion were issued on 14.2.1992 by the Ministry of Urban Development. To enable maximum number of lessees to take advantage of this offer of conversion to free hold, the Govt. have also decided to charge conversion fee on the basis of notified land rates effective from 1.4.1987, though the present notified land rates are much higher. However, these concessional rates will be available upto 31.3.1993. All applications received along with the necessary payments upto 31.3.1993 will be eligible for these concessional rates. The applications received from 1.4.1993 will be considered with reference to the new land rates to be notified for the relevant period. Further the Govt. have also decided to offer the convenience of the payment of these amounts in a maximum of five equal annual instalments to ease the burden on the public. Therefore, it is hoped that maximum number of lessees will take advantage of this offer at the earliest opportunity”.

3. The property which were eligible for conversion were described as follows:-

“1.1 All plots of land upto 500 sq. mts. of area for which the allotment/perpetual lease is issued by the Department of Rehabilitation or L & DO for purely residential purpose and the building there-on is constructed and where completion certificate or at least D-form in respect of such construction is obtained from the Local body.

1.2 In addition to above criteria the land use of the area where the property is situated should also be residential under current Master/Zonal plan”.

4. The property in question is admeasuring less than 500 sq.mtrs., and falling in residential colony is therefore, eligible for conversion. Under the heading, “Who can apply?”, it was stated that, apart from the recorded lessees, General Power of Attorney holders could also apply for conversion. Clause 3.2 is relevant in this regard and read as follows:-

“If there was already a transaction regarding the property and the original lessee had given General Power of Attorney to another person for execution of sale deed, the GPA holder himself can apply for conversion. However, in such cases, it should also be specified in the application as to in whose name the conversion is to be granted. If there are a series of GPAs, attested copies of all such GPAs must be furnished to establish the link with the lessees on record and the applicant”. (emphasis supplied)

5. The amount payable under the said policy for getting the properties converted from leasehold to freehold were set out in clause 17 of the policy, which reads as follows:-

“What are the amounts payable for getting the conversion from lease hold to free hold?

1. Conversion fee

2. Arrears of ground rent, if