1. Non-functional IDLI portal since January 2026 delayed conversion of leasehold properties to freehold in Delhi. (Para 2 , 3 , 4 )
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2026 Supreme(Online)(Del) 20392
IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, Vikas Mahajan, JJ
Delhi Development Authority – Appellant
Versus
Mala Sahni Seth – Respondent
CONT.APP.(C) 15/2026|CM APPL. 40235/2026|W.P.(C) 9034/2025|CM APPL. 59809/2026|CM APPL. 60136/2026|W.P.(C) 17229/2025|W.P.(C) 2651/2026
Advocates:
For the Appellants/Petitioners: Mrinalini Sen, Gauri Rajput, Ashwini Kumar Singh, Shruti Singh, Saurabh Seth, Sukrit Seth, Neelampreet Kaur, Abhiroop Rathore, Kabir Dev, Sukhvir Singh
For the Respondents: Chetan Sharma, Ashish K Dixit, Umar Hashmi, Ayush Kumar, Amit Kumar, Naman, D. Thara, Rajveer Pandey, Manisha Agrawal Narain, Divyanshu, Ayush Srivastava, Urvi Mohan, Roshni Agarwal, C.M. Rao
For the Appellants/Petitioners: Mrinalini Sen, Gauri Rajput, Ashwini Kumar Singh, Shruti Singh, Saurabh Seth, Sukrit Seth, Neelampreet Kaur, Abhiroop Rathore, Kabir Dev, Sukhvir Singh
For the Respondents: Chetan Sharma, Ashish K Dixit, Umar Hashmi, Ayush Kumar, Amit Kumar, Naman, D. Thara, Rajveer Pandey, Manisha Agrawal Narain, Divyanshu, Ayush Srivastava, Urvi Mohan, Roshni Agarwal, C.M. Rao
Pending applications for conversion of property from leasehold to freehold, where conversion charges have already been collected, must be processed according to the policy prevalent at the time of filing the application.
Headnote:(A) Property Law - Conversion of Leasehold to Freehold - Non-functioning of online portal (IDLI) - Prolonged delay in processing conversion applications by DDA and MoHUA is unacceptable as it hampers the right of citizens to deal with and transfer their immovable properties. (Para 4, 23)
(B) Administrative Law - Policy Formulation - Retrospective vs Prospective application - Any new policy regarding conversion charges must be prospective; pending applications where charges were already collected must be processed as per the policy prevalent at the time of filing. (Para 13, 25)
Issues: Whether pending applications for conversion of property from leasehold to freehold should be processed based on the policy prevalent at the time of application or a new policy to be formulated.
Legal Category Hierarchy
- administrative law
- property law
- practice and procedure
- constitutional law
Table of Contents
2. DDA and MoHUA sought time for policy; property owners argued conversion charges at date of filing should apply. (Para 4 , 5 , 6 , 7 , 12 )
3. Delay in restoring conversion portal is unacceptable and adversely affects property owners' rights to deal with immovable properties. (Para 16 , 17 , 18 , 23 , 24 )
4. Conversion charges collected before policy change must be processed under the policy prevalent at the time of application. (Para 25 , 26 )
5. Directed DDA to process pending applications under prevalent policy within two months and finalise policy for future applications. (Para 25 , 26 , 27 , 28 , 29 )
6. Does depositing conversion charges create an indefeasible right to conversion at the rate prevalent on date of deposit?
No, mere deposit does not create an indefeasible right; conversion must be sanctioned and consideration must attain finality. (Para 22 )
7. Should pending conversion applications be processed under the policy prevalent at the time of filing?
Yes, pending applications where payments have been received must be processed as per the policy prevalent at the relevant point in time. (Para 10 , 11 , 25 )
8. Can a new conversion policy be made retrospective to apply to pending applications?
No, any new policy would have to be prospective; past applications with collected charges must be processed under the old policy. (Para 11 , 12 , 13 )
9. What is the impact of prolonged non-functioning of the conversion portal on property owners?
It severely hampers property owners' ability to sell, transfer, or settle their properties and impedes family settlements and bona fide transactions. (Para 24 , 25 , 26 , 27 , 28 )
10. What obligation does the DDA have regarding restoration of the conversion portal?
DDA must take immediate steps to restore the portal and process pending applications; prolonged delay without final decision is impermissible. (Para 24 , 25 , 26 , 27 , 28 )
$~1 to 4 (SDB)*
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
2. The present set of petitions are concerned with the difficulties being faced by the residents of Delhi due to applications for conversion of property from leasehold to freehold not being processed by the DDA.
3. In CONT.APP.(C) 15/2026 on 3rd July, 2026 the Court took judicial notice of the fact that in several cases pending before this Court in respect of flats in different Co-operative Societies, the Interactive Disposal of Land Information System (IDLI) portal operated by the Delhi Development Authority (DDA) for filing applications seeking conversion of properties has remained non-functional since 2nd January, 2026.
4. On the said date, submission of the ld. Senior Counsel for the DDA was that a policy decision was likely to be taken by the Ministry of Housing and Urban Affairs (MoHUA). Considering the said submission as also the severe situation in respect of non-processing of conversion applications, the Court had observed as under:
“24. The conversion of properties from leasehold to freehold in the city of Delhi is an important right available to citizens, enabling them to freely deal with, transfer and otherwise transact in respect of their immovable properties. The DDA cannot be permitted to keep this issue pending for such a prolonged period, particularly when nearly seven months have elapsed without any final decision being taken.
25. The matter would, no doubt, require consultation amongst the DDA, the Ministry of Housing and Urban Affairs and the Ministry of Finance, however, such consultation ought to have been undertaken and concluded at the highest level with due expedition.
26. The continued delay from January, 2026 till July, 2026 in restoring and facilitating the process of conversion of properties from leasehold to freehold in Delhi is a matter of serious concern, as it adversely affects property owners intending to enter into sale transactions in respect of their immovable properties or finalise title in respect of their properties.
27. In fact, such delay is also likely to impede family settlements and other bona fide transactions involving immovable properties. Accordingly, in the larger public interest, it is imperative that a final decision in the matter is taken at the earliest, without any further delay.
28. Accordingly, it is directed that a decision shall be taken in an expeditious manner and the Vice Chairman, DDA shall file a status report as directed in Writ Petition (C) No. 9034/2025. Copy of the said status report shall also be filed in the present matter.”
5. It is pertinent to note that this Court had earlier in Writ Petition (C) No. 9034/2025 titled Kanta Rani vs. Registrar of Cooperative Societies & Ors., in respect of a similar issue, directed the Vice Chairman, DDA to file a status report as to why the IDLI portal was non-functional, the steps taken by the DDA and the period by which the same would be functional. The relevant portion of order dated 22nd May, 2026 passed in Kanta Rani (supra) reads as under:
“4. Heard the ld. Counsels for the Parties. As is clear from the above order that the regularization of the Petitioner’s flat has been done and a recommendation has also been sent to the Delhi Development Authority (hereinafter “DDA”) by the Registrar Co-operative Societies (hereinafter “RCS”).
5. However, there is a delay in the conversion of the flat from lease hold to free hold, as the relevant portal of the DDA is not functional. As soon as the portal is functional, the Petitioner is free to apply afresh for conversion and the same shall be processed within a period of six weeks thereafter subject to all formalities as applicable being completed.
6. At this stage, the Ld. Counsel for the Petitioner has raised a serious objection that the portal of the DDA for regularization of property is not functional since 2 nd January, 2026.
7. This Court has also heard similar grievances
