Conversion to Free Hold of Expired Leases in Paharganj, Daryaganj, Karol Bagh etc.
Hindustan Times, New Delhi 06-01-2015
Go freehold if your house is on govt land
Bringing a big relief to a large number of people living in 23 Nazul estates (government land) across Delhi, the urban development ministry on Thursday approved the mechanism for conversion of such properties from leasehold to freehold, by paying certain charges.
This scheme will be applicable to residential properties for conversion to freehold where the leases have already expired. Lessees, power of attorney holders, mutatees and purchasers of properties on Nazul lands can apply for conversion to freehold.
The Nazul estates which fall under this scheme include Karol Bagh, Jhandewalan, Paharganj, Darya Ganj, Sadar Bazar, Aliganj, Chirag, Naiwala Basti Reghar, Jhilmil Tahirpur, Arakpur Bagh Mochi, Southern Ridge, a government release said.
Following directions from urban development minister M Venkaiah Naidu, DDA will facilitate the conversion against payment of about Rs 2 lakh per 100 square metre plot, depending on the number of years since the term leases have expired.
Times of India, New Delhi, 02-01-2015
UD Ministry gives major relief to Delhi Nazul land lease holders whose term leases have expired
Press Information Bureau Government of India Ministry of Urban Development
01-January-2015
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.