Delhi: L&DO stalls conversion of leasehold properties to freehold
NEW
DELHI
: Thousands of Delhiites are facing a precarious situation as the land and development office (L&DO) under the
housing and urban affairs ministry
has stalled the conversion of leasehold properties to freehold for two-and-half years. The department has missed earlier deadlines to come up with new
standard operating procedure
(SOP) and rates for freehold conversion even after committing to courts.
As per ministry's annual report for 2020-21, L&DO is responsible for the administration of about 60,526 leases of central govt land in Delhi, out of which 34,905 properties have been converted into freehold. Though the number of properties under L&DO are much less compared to Delhi Development Authority, the land parcels and properties administered by L&DO are prime ones, located in Lutyens', South and Central Delhi.
There was no official response from the housing ministry on the status, reasons and by when the process will resume. Sources said the issue may be resolved in the next three months by when a detailed SOP will be issued and there will be simplified video guides for both conversion of leasehold properties to freehold and for getting the no objection certificate (NOC), which is mandatory for sale and registration of both leasehold and freehold properties.
TOI has learnt that L&DO is flooded with complaints and requests for conversion of property status. Sources said the issue is likely to be resolved in the next three months with a new SOP and the revised rates for conversion.
Some of the land owners who have been stuck due to "informal" suspension of conversion of L&DO land alleged that this has led to corruption on ground and are lured to pay an extra amount to get NOC for sale of properties.
Earlier, even the Delhi High Court had taken cognisance of the delay and had sought personal appearance of L&DO to explain the factual position in one case where the petitioner has dragged the agency to court for failing to convert a property despite complying with all requirements. In some cases, people have even moved court, including in the Delhi HC.
The L&DO had earlier informed the HC in one case that properties "could not be converted from leasehold to freehold as the SoP is under process and as such since 2022 no property was allowed to be converted".
The L&DO had allotted most of these lands and properties to individuals and entities in the 1950s at a very nominal rate and the conversion charge for these properties from leasehold to freehold is in the range of 6-10% of the land value depending on their size. Sources said as the prevailing market rate of these properties is very high, there is more demand from leaseholders to get them freehold so that they can sell them off.
They added that the middlemen involved in these sale-purchase transactions get the most out of this and the govt needs to consider how to go for better discovery of price to protect its interest and also carry out conversion of land deeds.
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