The legal and administrative battle surrounding the 113-year-old Delhi Gymkhana Club has intensified after the Union government issued an eviction notice directing the elite institution to vacate its 27.3-acre premises in Lutyens' Delhi by June 5.
The move has left nearly 14,000 members and more than 500 employees uncertain about the club's future, while triggering a fresh challenge before the Delhi High Court.
The eviction notice, issued on May 22 by the Ministry of Housing and Urban Affairs' Land and Development Office, stems from a prolonged dispute over revised ground rent and alleged unpaid dues amounting to Rs 47.58 crore. The club has argued that the government's demand is arbitrary and financially unsustainable.
The roots of the dispute date back to the club's original perpetual lease signed in 1927, under which it paid an annual ground rent of just Rs 15 per acre, totaling Rs 409.50 annually for the sprawling estate. However, in December 2023, the L&DO retrospectively revised the rent from April 1, 2018, recalculating it at commercial institutional land rates. This pushed the annual liability to over Rs 4 crore.
Following audits and inspections, including scrutiny of charges linked to a Punjab National Bank branch operating within the premises, the ministry issued a final demand notice on April 16, 2026, seeking Rs 47.58 crore in dues and accumulated interest. The club subsequently moved the High Court challenging the revised assessment and alleging a lack of due process.
After the payment deadline lapsed, the Centre escalated the matter by invoking Clause 4 of the 1928 lease deed, which permits the government to reclaim the land for "public purpose". The government has maintained that the property, located near high-security zones and the Prime Minister's residence at Safdarjung Road, is required for strengthening defence infrastructure and integrated public security facilities.
The Delhi High Court has since recorded the Centre's assurance that no forcible takeover will occur before June 5 and that any action will follow legal procedures. Founded in 1913, the Delhi Gymkhana Club remains one of India's most exclusive social and sporting institutions, historically associated with diplomats, bureaucrats, judges, politicians and military officers.
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