UD Ministry gives major relief to Delhi Nazul land lease holders whose term leases have expired

venkaiahnaiduBy Accommodation Times News Services

Shri M.Venkaiah Naidu approves ‘conversion to freehold’ of such leases of all 23 Nazul Estates Attractive payment terms for freehold conversion.

On the New Year Day today, a large number of residents of Delhi living on Nazul lands (Government lands) and whose term leases have expired over the years have got a major relief from the Ministry of Urban Development. The Minister of Urban Development Shri M.Venkaiah Naidu has approved after extensive discussions with all the concerned, conversion of such properties from ‘leasehold’ to ‘freehold’ at affordable cost. As per the Minister’s decision, Delhi Development Authority would now facilitate such conversion to freehold against payment in the range of about  Rs.2.00  lakhs per 100 sq.mt plot depending on the number of years since the term leases have expired.

This issue has remained unresolved causing anxiety among such lease holders since an appropriate scheme could not be formulated since 2005, as required. A way forward has now been finalized under the instructions of Shri M.Venkaiah Naidu to all the concerned agencies to resolve the same. This decision will benefit the people of Delhi living for several years on all the 23 Nazul Estates with expired term leases.

As per this scheme, the charges  to be paid by the applicants for conversion to freehold include : Prevalent conversion charges, One time renewal of lease charge @ Rs.1,000 per sq.mt, Ground rent payable for each year beyond expiry of lease @ five times the rate as applicable at the time of expiry of lease (in the range of Rs.90 to Rs.270 per 100 sq.mt) and any other outstanding dues against the property.

As an illustration, the conversion charges in respect of a 100 sq.mt plot would be:

-Conversion charges                :      Rs. 97,455/-

-Renewable                                 :         1,00,000/-

-Ground rent payable

(for 5 years beyond expiry of  :               2,250/-

Lease-5 x Rs.90 x5)

Total                               :    Rs.1,99,705/-

            This scheme applicable to residential properties for conversion from leasehold to freehold will be operational till 31.12.2015 with a view to facilitate conversion of leases already expired. Lesses, Power of Attorney Holders, Mutatees and Purchasers of properties on Nazul lands can apply for conversion to freehold. A separate schedule of rates for conversion of properties where the use has been changed to commercial or industrial or any other purpose will be worked out.


Details of 23 Nazul Estates in Delhi are : Karol Bagh, Jhandewalan, Paharganj, Darya Ganj South, Darya Ganj North, Sadar Bazar South, Sadar Bazar North, Aliganj, Chirag North, Chirag South, Naiwala, Basti Reghar, Bagh Raoji, Shidupura, Qadam Sharif, Burn Bastion Road, Gestin Baston Road, Jhilmil Tahirpur, Interpat, Arakpur Bagh Mochi, Southern Ridge, Inside City Wall and The Bela.

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