Center tells Delhi High Court it will not forcibly take over Delhi Gymkhana Club by June 5 | Today’s news

The Union government on Tuesday told the Delhi High Court that it will not forcibly take over the 113-year-old Delhi Gymkhana Club on June 5 and that the takeover of the premises will be done only in accordance with the procedure prescribed by law.

Justice Avneesh Jhingan recorded the government’s statement and observed that the assurance was satisfactory. The court issued an order stating that no further directions were required at this stage and granted interim protection to club members challenging the government’s eviction notice.

The order was passed during the hearing of petitions challenging the Centre’s eviction notice directing the club to hand over its 27.3-acre Safdarjung Road premises by June 5.

The Supreme Court issued summons to the Union government and other parties, directing them to submit their replies within eight weeks.

Appearing for the Union government, Solicitor General Tushar Mehta clarified that the June 5 date is only an option for voluntary surrender by the tenant and not a deadline for forcible takeover.

“It is not that the police will rush in and there will be a forcible takeover. It will have to be taken over in accordance with the procedure laid down by law,” Mehta said.

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He informed the court that clause 4 of the lease agreement contains a compensation mechanism.

“The compensation can either be in money or the government can even offer an alternative land where they can shift and continue the same activities,” Mehta said.

Derivative action

During the hearing, senior advocate Abhishek Manu Singhvi, appearing for the members, argued that their petition was filed as a derivative action supported by more than 500 members and argued that the management of the club itself was under considerable government influence following the intervention of the Ministry of Corporate Affairs and the appointment of nominee directors.

A derivative suit is a legal claim brought by a shareholder or partner on behalf of a company.

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Singhvi argued that Delhi Gymkhana The Club is a not-for-profit Section 8 corporation and its members are in a position similar to minority shareholders, allowing them to pursue a derivative action where management cannot independently challenge the takeover.

Senior advocate Kapil Sibal, appearing for member Major Atul Dev, argued that the tenancy clause relied on by the government predates the Constitution and cannot override constitutional guarantees. He further argued that the members were rightful residents and could not be dispossessed without due process.

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National security

The call stems from a May 22 order issued by the Lands and Development Authority under the Ministry of Housing and Urban Affairs, citing Article 4 of the 1928 lease to take over the club’s premises. for reasons including national security, defense infrastructure and public interest projects.

A petition which Mint reviewed earlier, argued that the government had not disclosed any specific project, urgency or material explaining why the entire property was needed. It argued that the notification contained only “vague and omnibus claims” without identifying any specific public purpose.

The plea claimed the move was “the latest in a series of acts by the government to gain control of the institution, including a recent attempt to take over the institution.”

Founded in 1913, the Delhi Gymkhana is among the oldest elite clubs in India. The club has been at the center of governance litigation since 2020, following an intervention by the Department for Corporate Affairs that led to a government-appointed administration and appointed directors taking over. Separately, it faced lease-related disputes, including notices of alleged violations and unpaid ground lease fees of approximately ₹47.58 crore, making the eviction order the latest chapter in the long-running dispute between the government and the club.