NEW DELHI: Rationalising the process of conversion of land tenure in Delhi from leasehold to freehold, the Union Cabinet on Tuesday gave its approval to four proposals relating to modification in the existing scheme of conversion. The move is expected to benefit a large number of persons intending to convert their residential, commercial and industrial properties to freehold.

The decision will, on the other had, save huge financial losses to the public exchequer and also avoid giving undue financial benefits to private individuals who were handed over Government properties through the process of disinvestments.

The Cabinet has decided to permit conversion of properties sold through regular sale deed on payment of conversion fee and surcharge at the rate of 33-1/3 per cent. It has also decided to permit conversion of flats or floors as well as shops or spaces in multi-storey buildings developed on leasehold plots if the purchasers have valid registered sale deeds or registered general power of attorneys and agreement to sell after recovery of a proportionate share of dues payable by the lessee. The modification also permits conversion of institutional properties sold at commercial rates. However, under the new rule, conversion of hotels or other commercial properties of Central public sector enterprises acquired through the process of disinvestments or strategic sale is not permitted.

Printer friendly page  
Send this article to Friends by E-Mail