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Paid low price, but charged exorbitant fees: Delhi Gymkhana Club was granted a permanent land lease on Safdarjung Road to serve British administrators, royals & military officers
The ballroom and billiards room of the Delhi Gymkhana Club. (Website)
Even as the Centre’s eviction notice to the Delhi Gymkhana Club is making the news, did you know that the club was paying a nominal annual lease rent of just Rs 1,000 to the Union government for its sprawling 27.3-acre plot?
What makes the amount remarkable is the location — 2, Safdarjung Road, in the heart of Lutyens’ Delhi, one of the most expensive and high-security real estate zones in India.
The eviction order
The Land & Development Office (L&DO), functioning under the Ministry of Housing and Urban Affairs, issued an order on May 22, 2026, terminating the century-old lease. The government directed the club management to hand over peaceful possession of the entire property by June 5, 2026. The Club has sought urgent meetings with the Centre.
Why was the lease so low?
Established in 1913 as the Imperial Delhi Gymkhana Club, the institution was granted a permanent land lease on Safdarjung Road to serve British administrators, royals, and military officers.
Like many elite institutional leases from that era, the agreement featured a highly subsidised, fixed annual token amount (₹1,000) that completely lacked inflation adjustments or market-rate indexing.
The land was explicitly leased by the government for the specific public utility of maintaining a non-commercial social and sporting club.
Why the order?
The club is situated next to the Prime Minister’s residence on Lok Kalyan Marg. While the club operated as an exclusive social and sporting venue for elite members, the government invoked Clause 4 of the original lease deed. This clause permits the state to execute “re-entry and resumption” if the land is required for a public purpose.
The Government authorities stated that the high-security property is “critically required” to expand and strengthen defence infrastructure, governance facilities, and vital public security projects.
Upon the June 5 takeover, all structures, including colonial-era heritage buildings, swimming pools, tennis courts, and lawns, will vest absolutely with the President of India.
Government investigations previously revealed that despite holding heavily subsidised land meant for sports, the club spent less than 3% of its budget on sports between 2014 and 2019, heavily prioritizing luxury catering, alcohol, and elite recreational facilities instead.
The debate over the nominal rent
The nominal Rs 1,000 annual rent has fueled long-standing debates regarding public land usage in India. Critics and administrative authorities have often questioned why a private, highly exclusive club — where membership waiting lines stretch for up to 37 years — should enjoy vast tracts of highly prized government land for a negligible fee.
This eviction follows years of legal friction, including a previous Ministry of Corporate Affairs intervention over alleged financial irregularities and mismanagement, which resulted in a government-appointed administrator running the club’s daily affairs.
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