New Delhi: The Centre Friday began the process to take over possession of the 27.3 acre piece of prime land in Safdarjung Road, leased to the Delhi Gymkhana Club, on the ground that it is “critically required” for “strengthening and securing of defence infrastructure and other vital public security purposes.”
In a letter to the secretary of the over 100-year-old club, a favourite with Delhi’s elites, the Land and Development Office (L&DO) under the Ministry of Housing and Urban Affairs (MoHUA) has directed the club management to hand over the entire plot, along with all buildings, standing erections, structures, lawns, and fittings to the L&DO on 5 June.
“Whereas it has been determined that the said premises, located in a highly sensitive and strategic area of Delhi, is critically required for the strengthening and securing of defence infrastructure and other vital public security purposes. The land is essential to fulfill urgent institutional needs, governance infrastructure, and public interest projects, integrated with the resumption of adjoining government lands,” the L&DO letter, seen by ThePrint states.
“…. in exercise of the powers conferred under Clause 4 of the Lease Deed, the President of India, through the Land and Development Office, hereby determines the lease and orders re-entry of the aforesaid premises with immediate effect,” it states.
Previously known as the Imperial Gymkhana Club Limited, the Gymkhana Club was leased by the L&DO for the specific purpose of maintaining a social and sporting club.
However, inspections carried out by the government following complaints by 12 people, including two members in 2017, found various irregularities in the club’s management. Among other things, the government had said that even though the land was leased to the club by the MoHUA for sports activities, its total expenditure on sports was just 2.77 percent from 2014-15 to 2018-19. An extraordinarily higher sum was spent on catering, wine, beverages and cigarettes instead, it had said.
The club has been embroiled in a long drawn legal battle with the Centre since April 2020 when the Ministry of Corporate Affairs (MCA) approached the National Company Law Tribunal (NCLT) under Sections 241 and 242 of the Companies Act, 2013, which allows members of a company or the government to seek relief if the affairs of an entity are being run in a manner “prejudicial to public interest”, or are deemed “oppressive”, among other things.
ThePrint had earlier reported that the Gymkhana Club challenged the NCLT order in the National Company Law Appellate Tribunal (NCLAT). In February 2021, the NCLAT allowed the government to, in effect, take over the club, upholding the NCLT’s June 2020 decision to dissolve its general committee.
It also appointed an administrator to oversee and check “mismanagement” even as the case continued at the NCLT. The general committee members of the club then approached the Supreme Court challenging the suspension of the club’s general committee by the NCLAT.
In October 2024, the NCLAT had upheld the central government’s takeover of the Delhi Gymkhana Club, setting a 31 March 2025 deadline for a government-nominated committee to take remedial measures to restructure the club and bring it in line with the Companies Act, as well as its memorandum and articles of association.
(Edited by Tony Rai)