In Brief
The Delhi Development Authority sold a leasehold residential plot to Karamdeep Finance through public auction after government acquisition of the original lessee's interest. Karamdeep later sought conversion to freehold and challenged demands for unearned increase and conversion charges. The Supreme Court held that Karamdeep purchased only leasehold rights (as specified in auction notice), not absolute rights. The unearned increase was not payable because it had already been paid by the Income Tax Department during acquisition. Karamdeep was not entitled to refund of conversion charges, but DDA must process the conversion application in accordance with law.
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