Delhi’s elite and historic Gymkhana Club in Lutyens’ Delhi has been asked by the Centre to vacate its premises by June 5, with the government citing defence-linked infrastructure and public-interest projects as the reason behind the move.
The order was issued by the Land and Development Office (L&DO) under the Union Housing and Urban Affairs Ministry. According to the notice, the land is required for “urgent institutional needs, governance infrastructure and public-interest projects” in the national capital.
“The premises shall be taken over by the Land & Development Office on June 5,” the notice stated.
The communication further said the land was “critically required for the strengthening and securing of defence infrastructure and other vital public security purposes”.
The property was originally leased to the Imperial Delhi Gymkhana Club Ltd, now known as Delhi Gymkhana Club Ltd, for the purpose of operating a social and sporting club.
“The premises were leased to the Imperial Delhi Gymkhana Club Ltd (now known as Delhi Gymkhana Club Ltd) for the specific purpose of maintaining a social and sporting club,” the letter said.
Located at 2, Safdarjung Road, the club sits in one of the most high-security zones of the capital, close to the Prime Minister’s residence on Lok Kalyan Marg and several key government and defence establishments.
LEASE TERMINATED WITH IMMEDIATE EFFECT
Invoking Clause 4 of the lease deed, the Centre announced the immediate termination of the lease and ordered re-entry into the property.
“In exercise of the powers conferred under Clause 4 of the Lease Deed, the President of India, through the Land & Development Office, hereby determines the lease and orders re-entry of the aforesaid premises with immediate effect,” the order said.
“Upon such re-entry, the entire plot of land measuring 27.3 acres, along with all buildings, standing erections, structures, lawns, and fittings thereon, shall vest absolutely in the lessor, i.e., the President of India, through the Land & Development Office.”
The government has directed the club to hand over peaceful possession of the premises by June 5.
“You are directed to hand over peaceful possession of the premises to the representatives of this office on the aforesaid date. In the event of non-compliance, possession shall be taken in accordance with law,” the notice said.
LEGAL AND MANAGEMENT DISPUTE
The development comes amid an ongoing legal and administrative dispute over the management of the prestigious club, which has been facing allegations of financial irregularities.
Earlier, the National Company Law Appellate Tribunal upheld an order allowing a government-appointed committee to take over the club’s management. The tribunal had dismissed petitions filed by former management members against an April 2022 National Company Law Tribunal order replacing the club’s General Council with a 15-member committee appointed by the Centre.
The committee was tasked with completing remedial measures by March 31, 2025, and conducting elections for the President and General Council members within three months after that deadline. Following the elections, the newly elected General Council is expected to take charge.
PROBE INTO ALLEGED IRREGULARITIES
The Centre’s intervention in the club’s affairs began after an enquiry was ordered in March 2016.
A report submitted to the Ministry of Corporate Affairs in March 2020 allegedly pointed to several violations, following which the government approached the tribunal under Sections 241 and 242 of the Companies Act, 2013, related to oppression and mismanagement.
In June 2020, the tribunal allowed the government to appoint two members to monitor the functioning of the Delhi Gymkhana Club alongside the General Council and suggest corrective measures. The Centre was also permitted to investigate the club’s affairs.
That order was later upheld by the appellate tribunal.
In April 2022, the tribunal further allowed the government to nominate 15 individuals to the club’s General Committee to oversee its management.
Senior Advocate Krishnendu Dutta and Advocate Gaurav M Liberhan, appearing for the appellants challenging the takeover, had argued that the government needed to prove that the club’s affairs were being conducted in a manner prejudicial to public interest before intervening.
They had also challenged the findings related to the alleged financial irregularities.
A COLONIAL-ERA LANDMARK
Established during the British era, the club started functioning at the site in 1913 under the name Imperial Delhi Gymkhana Club. After Independence, it was renamed the Delhi Gymkhana Club, while most of the current structures on the property were built in the 1930s.
Today, the club occupies one of the most valuable land parcels in the high-security Lutyens’ Delhi zone.
