Delhi LG approves conversion of industrial plots to freehold

A leasehold property is given on lease by a landowning agency to a lessee for a fixed period of time

Lieutenant governor (LG) VK Saxena has approved the conversion of industrial plots allotted by the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) under the Relocation Scheme, 1998 from leasehold to freehold, officials aware of the matter said.

Lieutenant governor VK Saxena (PTI)

A leasehold property is given on lease by a landowning agency to a lessee for a fixed period of time. A freehold property is when the property title or ownership is transferred by the landowning agency to the owner.

The LG’s nod for the conversion of these plots to freehold, given on Friday, will affect around 22,000 small and medium industrial units across the Capital, lifting the prohibition on their sale or purchase, with an outward limit of March 31, 2025.

“It is surprising that the scheme was entrusted to DSIIDC in 1998 for implementation and allotments of plots started in 2000-2001, but this process has still not been completed, even after 23 years. Even the success of the scheme vis-à-vis its implementation on ground as ordered by the Supreme Court, cannot be ascertained, since no details are available on file of how many industries were to be relocated and how many have actually been relocated,” Saxena said.

The LG said that the conversion will be granted, subject to four conditions: where the plots are in the possession of the original allottee, where the construction of a building has been completed, where the original allottee has closed his industrial unit in non-conforming areas, and fourth, if the allottee has paid conversion charges, fees and all other pending dues.

He also directed to formulate a comprehensive policy for effective implementation of the relocation scheme within the overall framework of the scheme.

Separately, Saxena also expressed his displeasure over the alleged failure of DSIIDC to provide even basic amenities and infrastructure in these industrial areas. He further said that while there has been progress in the development of industrial plots at Bawana and Narela industrial areas, DSIIDC has “miserably failed” in providing adequate and basic infrastructure at Bhorgarh.

HT reached out to DSIIDC, but officials there did not respond to the development.