Delhi Gymkhana Club Eviction Row: Rs 47.58 crore dues trigger High Court battle

The move has triggered a fierce confrontation between the club’s members and the government, with the matter now reaching the Delhi High Court.

Post Published By: Komal Pandey
Updated : 26 May 2026, 1:36 PM IST

New Delhi: One of the oldest and most prestigious private institutions in India, the Delhi Gymkhana Club has found itself in the eye of a massive legal and political storm after the Centre asked it to vacate its iconic 27.3 acre property in the heart of Lutyens’ Delhi by 5 June.

This has led to a bitter war between the members of the club and the government and the matter has now come to the Delhi High Court.

The controversy is over allegations of arbitrary government action, unpaid dues of Rs 47.58 crore, questions over governance and the future of nearly 14,000 members and over 600 employees.

What is Delhi Gymkhana Club?

The Delhi Gymkhana Club was established in 1913 during the British era and is one of the most prestigious sporting and social institutions in India.

The club is on Safdarjung Road in high security Lutyens’ Delhi zone on government land leased out on a perpetual lease decades ago.

Over the years, the club has evolved into a potent networking and recreational hub for India’s elite bureaucracy, military establishment, judiciary, diplomats and politicians. Membership at the club is said to be highly exclusive, with waiting periods reportedly lasting up to a decade.

The institution currently has some 14,000 users and members and more than 500 staff.

Who are the main people?

The club, which has a 113-year history, has had some of the nation’s most powerful people as its members, including former prime ministers, presidents, senior military chiefs and top bureaucrats.

One of the better known current members is Rahul Gandhi, who reportedly joined in 2006.

The institution is also associated with Congress MP and senior advocate Abhishek Manu Singhvi, who is representing the members of the club in court.

Retired military veteran P K Sehgal has also been closely associated with the club’s affairs.

After the government took over in 2022, a committee comprising senior lawyers, retired IAS and IPS officers and political figures was appointed to run the club.

Why Has the Government Asked the Club to Vacate?

On 22 May 2026, the Land and Development Office (L&DO) under the Union Ministry of Housing and Urban Affairs issued a formal eviction notice directing the club to hand over the land by 5 June.

The government invoked provisions of the original lease agreement, claiming the strategically located land was urgently required for “public purpose”, including strengthening defence and security infrastructure around the Prime Minister’s residence and adjoining high-security establishments.

The notice also stated that the entire land parcel, buildings, lawns and structures would revert to the President of India through the L&DO once possession is resumed.

The Rs 47.58 Crore Dues Controversy

The eviction order did not come suddenly.

According to reports, the L&DO had sent multiple notices to the club over the past several months regarding unpaid ground rent and alleged lease violations.

The first notice, issued in September 2025, reportedly demanded Rs 32.88 crore in revised ground rent along with interest.

Another communication in March 2026 sought documents related to office space occupied by Punjab National Bank within the club premises to calculate potential subletting charges.

Finally, on 16 May 2026, the government issued a final warning demanding payment of Rs 47.58 crore within seven days, warning that failure to comply could lead to “re-entry proceedings” under the lease agreement.

The issue became more controversial after allegations surfaced that ordinary club members were never informed about the accumulating dues and repeated government notices.

Delhi High Court Battle Begins

The legal fight has now shifted to the Delhi High Court.

The club challenged the eviction order, arguing that the government’s action is arbitrary, violates due process and is aimed at taking over the institution despite ongoing legal proceedings.

The plea was mentioned before Justice Avneesh Jhingan by senior advocate Abhishek Manu Singhvi on behalf of club member Vijay Khurana. The court agreed to urgently hear the matter on Tuesday, 26 May.

This is not the first case linked to the club currently before the High Court. Earlier this month, the government-appointed committee had separately secured interim relief in another matter concerning ground rent proceedings.

Why Is the Club Being Run by a Government Committee?

The club is currently not under its elected management.

In April 2022, the National Company Law Tribunal allowed the Centre to take administrative control of the club following a prolonged governance dispute and allegations of irregularities.

Since then, a government-appointed committee has been managing the institution.

The committee claims it helped revive the club financially, turning losses into projected profits and digitising records that were allegedly missing or incomplete.

However, members of the previous elected body have accused the committee of failing to fulfil statutory obligations and creating conditions that ultimately enabled the government to reclaim the land.

What Happens to Employees and Members Now?

The possible eviction has created uncertainty for thousands connected to the institution.

The club management has sought discussions with the government over the future of more than 600 permanent and contractual employees, ongoing sports and cultural events, and the possibility of being allotted alternate land for relocation.

The committee has warned that shifting the club would require enormous investment and could disrupt sporting, recreational and social activities linked to the institution.

Members have also described the proposed takeover as “illegal” and “selective”, arguing that the club serves a significant cultural and sporting purpose beyond the commercial value of the land.

Why This Case Matters

The Delhi Gymkhana Club dispute is no longer just about unpaid rent or land possession. It has become a larger battle involving governance, heritage, public land usage and government authority.

With the matter now before the Delhi High Court, the future of one of India’s most exclusive institutions — along with thousands of members and employees - hangs in the balance.

 

 

Location :  New Delhi

Published :  26 May 2026, 11:28 AM IST