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MCD Freehold Conversion

Freehold Conversion of Municipal Corporation of Delhi (MCD) shops and properties

The conversion would only be allowed with respect to the properties existing and transferred from Directorate of Estate (DOE)/ Land and Development Office (L&DO).

The person(s) whose name(s) is registered with DOA and L&DO records as lessee(s) can apply for the conversion. If there is more than one lessee, then all of them will have to sign the application for conversion. Although, the lessee can give Power of Attorney to someone else for signing the conversion on his/her behalf.

All the commercial unit  
All types of commercial units allotted by the Department of Rehabilitation or L&DO on leasehold basis for residential purpose, or upon building which has received constructed and completion certificate or D-Form from local governmental authority.

In case of mortgaged properties, a “No Objection Certificate” issued by the mortgagees will be required for allowing the conversion into freehold.

An interest of 18% per annum is applicable and required to be paid by the applicant along with the arrears of ground rent before the conversion. In cases where the ground rent is due, the lessee will be notified regarding the revised amount of ground rent for the deposition of amount before the execution of conveyance deed.

Those who have already applied before does not require to apply again. In cases, where the payment has been accepted by the L&DO, the date of initial application shall be the crucial date for calculating the conversion charges. In cases, where the payment has been returned by the way of cheque/demand due to application rejection by L&DO, the relief is not applicable. In cases, the payment has been returned or rejected on the account of transfer of properties to the local bodies, then the relief will be granted.

A freehold is a way of transferring the ownership of an immovable property from the governmental authority to the private owner, which eventually enhances the value of the property. A conveyance deed is provided as the final document to the owner which is the registry in common place.  

One need to applied to the concerned authorities in order to conversion of a leasehold property into freehold. We offer consultancy services in this regard. You will be guided throughout the process from our professionals. All you essential documents will be taken care of, and we are offering all these services at nominal and reasonable price.  

The photocopies of certain documents is required by the applicant for freehold conversion, which depend upon the type of property (residential, commercial etc) and concerned authorities (DDA and L&DO).

Documents required for MCD Freehold Conversion

Photocopies of documents required for conversion are:

  • Allotment/allocation letter
  • Letter of Possession and Possession Slip
  • Perpetual lease deed (if any)
  • Proof of Possession such as electricity bill or water bill
  • Photographs
  • Bank Challans regarding the payments of installments, rents or service charges.

Original documents required for the conversion into freehold includes affidavit, indemnity bond, and undertaking on non-judicial stamp paper, along with a duly filled application form. Besides these documents, other conversion charges and requisite stamp duty is required to be paid.