Step-By-Step Guide To Converting Your Leasehold Delhi Property Into Freehold

The Delhi Development Authority (DDA) has joined the bandwagon of civic bodies across India going all out to make real estate transactions simpler for home buyers. The authority recently put in place a system under which flat owners will be able to convert their leasehold properties into freehold ones based on their self-assessment. This means DDA officials will not come to your doorstep for a site visit to define the “misuse charges”. The body has also reduced the number of documents required for completing the process.

"Conversion of properties from leasehold to freehold was a tedious process and the public was facing a number of problems, especially due to the requirement of a large number of documents, the conventional manual payment mechanism and non-reconciliation of payment details… DDA will simplify the process of conversion by reducing the required documents, facilitating the public for viewing their payment details online, providing them the facility of making online payments,” reads a note by Balvinder Kumar on the DDA website. Arun Goel is the current vice-chairman of the authority.

Four Nagrik Suvidha Kendras – at Dwarka, Rohini, Laxmi Nagar and INA – will guide you on the process and receive your application for online conversion of your property.

Before we go ahead, let's define the terms first.

Leasehold property: The terms freehold and leasehold refer to the ownership status of a property. Government agencies allot land parcels for real estate development on lease for a certain period. After this period is over, you have to apply to renew the contract. In a leasehold property, the absolute rights over the property lie with the authority, and not with the current owner.

Freehold property: In a freehold property, the ownership title lies with the home buyer and he has the absolute legal right over it.

Misuse charges: The use of a building for a purpose other than the permissible usage is known as misuse. In case there has been any misuse on your part, you have to pay misuse charges to the authority before your property is converted into freehold from leasehold. DDA now allows you to do a self-assessment of this.

The process

Here is how you can do it online on the DDA site:

1. Study the instructions and guidelines: Click on the first option under 'Online submission' tab that reads 'Instructions & Guidelines for Applicants'.

2. Download the brochure: Click on the second option under 'Online submission' tab that reads 'Download required document/application form/brochure' and choose your property type from among 'DDA flats', 'GH flats', and 'DDA plots'.

3. Calculate the conversion charges: Tables and formula for conversion of various types of DDA flats, group housing and DDA plots are given in the respective brochures under annexures A and B.

4. Generate challan: Click on the fourth option under 'Online submission' tab that reads 'Generate freehold challan, get user ID/password'

5. Prepare scanned copies of documents: Click here to know the documents required for conversion of DDA flats, DDA plots and group housing units from leasehold to freehold.

6. Upload a scanned copies of documents: Click on the sixth option under 'Online submission' tab that reads 'User login for make or upload payment/upload documents (scanned/saved copies)'. You will have to use the login ID and password generated at the time of generating challan.

7. Make payment: Click on the seventh option under 'Online submission' tab that reads 'Make other type of online payment'. You can make payment of conversion charges through Net banking/NEFT/RTGS. You will first be asked to enter the login and password generated at step 4. You will be asked to fill up payment details with challan number & UTR number.

8. Submission: Once you press the final submission button, your application for online conversion is received by DDA. An SMS and e-mail receipts are sent to you. You can now track the progress of your application through an online system by quoting your acknowledgement/receipt number.

 How will the process benefit?

No more queues: Most properties in Delhi remained leasehold, owing to the long process. To plug this, DDA will process your application on a first-come-first-served basis, in a time-bound manner.

All clear: The provision for site visits by officials left room for miscalculations and corruption.  The decision would encourage more and more people to convert their properties from leasehold to freehold, Goel told media.

Self-sufficient: DDA will do surprise checks to ensure that owners do not quote wrong misuse charges. This will also keep a tab on any unfair practices from home buyers' side.

Fund flow: While they struggle with a manpower crunch, civic bodies are often low on funds as well. The new move will enable DDA to generate more revenues, apart from feeing up its staff from manually facilitating the process. This manpower could be utilised better for other purposes.