For defence infra: Govt orders British-era Delhi Gymkhana Club to vacate premises

One of India's most exclusive colonial-era clubs is staring at a major shake-up after the Centre ordered it to vacate its Lutyens' Delhi premises, citing defence infrastructure and urgent governance needs.

In Short

• Land to be used for defence and public infrastructure projects
• Legal dispute ongoing over club management and alleged irregularities
• NCLAT upheld government-appointed committee running the club

Delhi’s prestigious Gymkhana Club, one of the country’s oldest and most exclusive institutions, has been directed by the Centre to vacate and hand over its Lutyens’ Delhi premises by June 5 for defence-linked infrastructure and other public projects.

The order was issued by the Land and Development Office under the Union Housing and Urban Affairs Ministry, which said the land was required to meet “urgent institutional needs, governance infrastructure and public-interest projects” in the national capital, integrated with the resumption of adjoining government lands.

“The premises shall be taken over by the Land & Development Office on June 5,” the notice said.

The communication added that the land was “critically required for the strengthening and securing of defence infrastructure and other vital public security purposes”.

“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.

The club, located at 2, Safdarjung Road in one of Delhi’s most secure administrative zones, sits adjacent to the prime minister’s residence on Lok Kalyan Marg and close to several key government and defence establishments.

LEASE TERMINATED WITH IMMEDIATE EFFECT

Invoking powers under Clause 4 of the lease deed, the Centre announced the termination of the lease and ordered immediate 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 notice added that the premises would formally be taken over by the L&DO on 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,” it said.

CLUB AT CENTRE OF LEGAL ROW

The latest move comes amid an ongoing legal and administrative battle over the management of the elite club, which has faced allegations of financial irregularities.

The National Company Law Appellate Tribunal had earlier upheld an order allowing a committee appointed by the Central Government to take over the club’s management.

The appellate tribunal 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 government-appointed committee.

The committee was directed to complete remedial measures by March 31, 2025, and hold elections for the President and General Council members within three months after that deadline.

Once elections are completed, the newly elected General Council is expected to take charge of the club’s affairs.

PROBE INTO ALLEGED IRREGULARITIES

The Centre’s intervention began after an enquiry ordered in March 2016 into the affairs of the club.

A report submitted to the Ministry of Corporate Affairs in March 2020 allegedly pointed to multiple violations, following which the government approached the tribunal under Sections 241 and 242 of the Companies Act, 2013, dealing with oppression and mismanagement.

In June 2020, the tribunal permitted the government to appoint two members to monitor the functioning of the Delhi Gymkhana Club alongside the General Council and recommend corrective measures. The Centre was also allowed to investigate the club’s affairs.

That order was later upheld by the appellate tribunal.

In April 2022, the tribunal further permitted 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 Centre was required to establish that the club’s affairs were being conducted in a manner prejudicial to public interest before intervening.

They had also contested the findings related to the alleged financial irregularities.

A COLONIAL-ERA LANDMARK

Founded during the British era, the club began functioning at the site in 1913 under the name Imperial Delhi Gymkhana Club. It was renamed the Delhi Gymkhana Club after Independence, while the existing structures on the property were built in the 1930s.

The club today occupies one of the capital’s most valuable land parcels inside the high-security zone of Lutyens’ Delhi.

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