Property owners in south Delhi lament pause on leasehold-to-freehold conversion

The Hindu

4 days ago

An undeclared pause on leasehold-to-freehold conversion for the past two and a half years by the Land and Development Office (L&DO) has put many owners in south Delhi in a fix over the legal status and future prospects of their properties.
A total of 264 such applications by owners in Chittaranjan Park, Lajpat Nagar and Defence Colony, among other areas, are pending with the L&DO, which comes under the Ministry of Housing and Urban Affairs, since the authority paused the issuance of fresh no-objection certificates (NOCs) in December 2022. The L&DO has cited an impending revision in land rates as the reason for not issuing the NOCs, which are mandatory for the sale and registration of leasehold and freehold properties.
The L&DO revised land rates for both residential and commercial areas last in 2017. A fresh rate revision is awaited.
A freehold property ownership also gives the owner complete rights without any restrictions over the property's construction, modification, and transfer.
When reached for comment, the L&DO did not respond.
Many of the applicants The Hindu reached out to said the NOCs are essential to carry out urgently needed infrastructural revamps.
'House needs repair'
A property owner in Chittaranjan Park, who spoke on condition of anonymity, said, 'Every year, rain causes a lot of waterlogging around my house, causing severe damage to the structure. I want to reconstruct it. Since 2023, I have visited L&DO's office more than 20 times, but I haven't yet got the NoC.'
A Defence Colony-based property agent, Pankaj Garg, said, 'I know several such families who are waiting to sell their properties. Many of them, who got these properties 30 to 40 years ago, are old now and can't manage without a lift.'
Another property agent, Himanshu Pahwa, said growing families find it difficult to adjust to the continually shrinking spaces. 'At least 15 families I know are waiting to sell these old properties and buy bigger spaces with more luxury in other parts of the NCR [National Capital Region].'
Meanwhile, some property dealers see a silver lining amid the long wait for NOCs. 'The delay is a good thing. It has slowed down new developments. This helps us crack deals quicker. Low inventory doesn't give buyers too many options,' said an agent on the condition of anonymity.
The L&DO has around 7% of the land in Delhi. The authority gave away these parcels on lease after Independence at nominal rates to establish residential areas. A total of 60,526 properties are under it, of which 34,905 have been converted to freehold.
An owner has to meet three conditions to get their property converted to freehold — there should be no unauthorised construction in the leased property, the property must not be put to any other use than the one specified in the lease deed, and it should be free 'from all kinds of encumbrances', including legal disputes and court injunctions.