The decision was taken at a cabinet meeting presided over by Chief Minister Sheila Dikshit.
Dikshit said free hold rights will be granted to the original owners of the plots which were allotted by the government under 20-point programme in early 1980s.
"The government is committed to help allottees from weaker sections of the society under 20 Point Programme," she said. The allotment of land was made for agricultural purposes to weaker sections in Delhi.
The free hold rights will be given to those original allottees and their legal heirs where there has been no change of hands in sale, purchase and transfer of land.
In another decision, the Cabinet has given its nod to a proposal for an amendment in the Indian Stamp Act, 1899.
The draft amendment bill, which will be introduced in the budget session of the Assembly, will help the government collect stamp duty from certain share market transactions.
