New Delhi: The Land and Development Office (L&DO) notice last Friday to the Delhi Gymkhana Club (DGC)– a favourite with the capital’s elites–to handover the land on which the club stands by June 5 did not come out of the blue.
The issue, which has snowballed into a major controversy and kicked up a storm in social media, with many celebrities, former and serving bureaucrats, former army men, lawyers and politicians defending or questioning the government’s move to take over the over 100 year old club has a back story.
The L&DO, which comes under the Ministry of Housing and Urban Affairs (MoHUA), had written three letters to the club authorities in a span of nine months—in September 2025, March 2026 and again on 16 April—to clear the ground rent to the tune of Rs 47.58 crore that the DGC owed to the agency, ThePrint has learnt.
The DGC had failed to pay the dues.
The government nominated committee of the DGC — appointed in April 2022 after the National Company Law Tribunal (NCLT) allowed the government to take over the club’s administration — instead approached the Delhi High Court on 16 May and got a stay on the ground that “some endeavours are being made to amicably resolve the dispute.” The court has fixed 21 July as the next date of hearing in the case.
In its last letter, the L&DO clearly stated that “failure to comply with these directions and remit the outstanding amount of Rs 47,58,91317 crore within the stipulated 7-day period will constrain this office to initiate re-entry proceedings for the premises, in accordance with the terms and conditions of the lease deed.” ThePrint has reviewed the letter.
The 22 May notice to the DGC to hand over the 27.3 acres of prime land in Delhi’s Safdarjung Road by 5 June for violating the lease conditions. The DGC was given the land on a perpetual lease but L&DO, the land owner can take it back if it is required for public purpose.
In the notice, the L&DO had said that the club “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.”
Soon after this letter, the officiating secretary of the DGC’s government-appointed committee wrote to L&DO requesting time to meet ministry officials to get clarity on various aspects including the “future of all permanent and other employees and staff of the club” in the eventuality of the club getting dislocated.
The DGC has about 14,000 members and users and over 500 staff.
Some of the members of the previously elected DGC general committee are also planning to move the Delhi High Court challenging the L&DO’s notice to take over the land on which the DGC stands.
Rs 47.58 crore ground rent
The L&DO had first written to the DGC on 12 September 2025, where it raised the demand for revised ground rent with interest to the tune of Rs 32.88 crore.
This was followed up with a second letter on 27 March, where it asked the DGC to furnish copies of all rent deeds executed with the Punjab National Bank for “determination and finalization of charges.”
Failing to get a response, the L&DO wrote a third letter on 16 May, where it said, “The ground rent for the subsequent period including misuse and damage charges arising from inspection up to 10 October 2023 has now been assessed. Accordingly, a total amount of Rs 47.58 crore is payable. You are directed to remit this amount to the government account within seven days of the issuance of this letter.”
“Please note that subletting charges regarding the office space leased to the Punjab National Bank are yet to be calculated due to non-submission of the information requested on March 27, 2026. These charges will be communicated separately upon receipt and examination of the requisite documents,” it said
The L&DO added that failure to comply with these directions and remit the outstanding amount of Rs 47.58 crore within the stipulated 7-day period “will constrain this office to initiate re-entry proceedings for the premises, in accordance with the terms and conditions of the lease deed.”
A member of the last elected managing committee of DGC told ThePrint that the government-appointed committee had not informed the old members about the L&DO notice to clear ground rent dues totalling Rs 47 crore.
“The members of the previous management committee were kept in the dark. The matter was not discussed. Instead the government-appointed committee went to the court and got a stay. They are intentionally doing this to create the grounds for government takeover,” a member of the previous committee, who did not want to be named, told ThePrint
Advocate Gaurav M. Liberhan, who is represented the members of the last elected management body in NCLT told ThePrint, “We will be filing a petition in the Delhi High Court challenging the L&DO’s takeover notice.”
Charges & counter charges
In their letter to L&DO Saturday, the officiating secretary of the government-appointed committee said that they have been “tirelessly working for over 4 years, managing the affairs of the Club effectively and have turned the club around from its dire financial state of losses.”
The committee has requested the L&DO against “dislocation of the club and its operations until there is clarity” about whether the L&DO/MoHUA is considering the allocation of some other appropriately located alternate plot of land for
the club to relocate. It has also urged the ministry to protect the “future of all permanent and other employees and staff of the club.”
It has also told the L&DO about the commitments the club had made in relation to various sporting events, cultural events as well as other gatherings. It has said that any such “sudden action by the L&DO would severely disrupt the functioning of also impact multiple stakeholders like members, employees, sportsmen, etc.”
The members of the previous elected managing committee has, however, alleged that the government-appointed committee has not complied with its statutory obligations and are deliberately creating grounds for the government to take over the DGC land for violation of lease conditions.
(Edited by Tony Rai)
Also Read: Centre tells Delhi Gymkhana Club to hand over land by 5 June, needs it to ‘secure defence infra’
Very good article. Why do civl servants need two clubs in Delhi. In 1998 the Government used tax payer money to establsih the Civil Services Officer’s Institute in Lutyen’s Delhi which now has more than 10,000 members. Indian bureaucracy is too wedded to privilege, paid from tax payer’s money. For India to become Viksit Bharat, Indian officials have to learn to live within their salaries, like average Indian outside the Government, and not provide tax free cars, houses, servants etc. and “permanent” jobs.