Pre-conceived design to take over Gymkhana Club property: Civil suit in Delhi HC


The Gujarat government on Saturday announced new guidelines for compensation of land in Right of Way (RoW) corridors and towers for transmission lines to “balance the financial burden on the power transmission companies and the possible increase in tariff to the end consumer”.

Challenging the Union government’s June 29 eviction notice to the Delhi Gymkhana Club, a civil suit filed by a club member in the Delhi High Court has said that the notice relies on a clause of the imperial-era lease that is “unworkable” and that behind the move lies a “pre-conceived design” to take over the property.The suit filed by Urmila Gupta, a permanent voting member and a part of the last-elected government body of the Club – moved by advocate Gaurav M Liberhan on Friday – argued that the Land & Development Office’s (L&DO) eviction notice to the Club and its May 22 letter ending the perpetual lease of the land is illegal. The civil suit is listed for hearing on Monday.Since 2022, the Club has been managed by government-appointed directors on orders of the National Company Law Tribunal (NCLT). This was after the Ministry of Corporate Affairs moved the NCLT alleging irregularities in the management of the Club.
On May 22, the L&DO wrote to the Club terminating the lease that was signed on February 28, 1928, saying it needed the 27.03 acre plot on Safdarjung Road for “strengthening and securing defence infrastructure and other vital public security purposes”. “The land is essential to fulfil urgent institutional needs, governance infrastructure, and public-interest projects, integrated with the resumption of adjoining government lands,” it said, referring to its recent taking over of the Jaipur Polo Ground and clearing of slums in the area near the Prime Minister’s residence. Under Clause 4 of the lease, the government could take back the land if it was needed for a public purpose. Then on June 29, the L&DO issued an eviction notice under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 asking the Club’s representative to appear before it on July 7 for a hearing.
The civil suit pointed to a contradiction in the May 22 letter.Story continues below this ad While Clause 4 of the lease, as cited in the L&DO letter, said the government can re-enter – that is take possession of – and then determine, which means end the lease and change the allotment, the letter said the government is determining and then re-entering the property. It added that this goes against Clause 4 of the lease and that this was done without issuing a show-cause notice to the Club. “…the impugned order/letter is ex-facie illegal, and contrary to legal principles based upon a pre-conceived design to appropriate the property of the Gymkhana Club,” the civil suit said. It added that Clause 4 of the lease, which was allotted by the Secretary of State for India in Council in 1928, itself was contrary to law. “…alternatively Clause 4 as existing is unworkable, grant extensive power and is however contrary to law being inconsistent with the grant of the suit property to the Gymkhana Club, therefore, Clause 4 is liable to be declared void and unenforceable being contrary to law and unconscionable,” the civil suit said.Story continues below this ad
The land was given to the Club – an incorporated company – on payment of Rs 5,460. As per the lease, it was to be used for “a club and purposes for which the same are customarily used, including the holding of banquets, concerts and dances and the lodging and boarding of the members resident in the premises…,” the civil suit further said. The L&DO has argued that it needs the land back for public purposes. In its eviction notice, it has said that the premises “constitute valuable public premises vested in the Union of India and the Government is under an obligation to regulate, protect and utilise such public property in accordance with public interest and public purpose”.
The Gujarat government on Saturday announced new guidelines for compensation of land in Right of Way (RoW) corridors and towers for transmission lines to “balance the financial burden on the power transmission companies and the possible increase in tariff to the end consumer”.Citing various queries and representations regarding compensation of land in Right of Way (RoW) corridors and tower based areas during laying of transmission lines, the resolution issued by the Department of Energy and Petroleum will supersede provisions of all other resolutions issued earlier by the state relating to compensation for damage to land/ crops/ fruit trees and other trees, during the erection of transmission lines and towers.The Indian Express reported Friday how farmers at Jetpar village of Morbi district who were facing loss of land were protesting against Adani Energy Solutions Ltd (ASEL) whose Special Purpose Vehicle, Halvad Transmission Ltd is installing high tension towers for transmission cables to evacuate power from the renewable energy park at Khavda in Kutch. They would wind up the agitation only after the state issues a fresh resolution, they had said.
On Friday, Agriculture Minister and Gujarat government spokesperson Jitu Vaghani agreed to key demands of the farmers including doubling the market price for calculating compensation, and the setting up of a Market Rate Committee (MRC). The final market price will be determined by the MRC based on the ‘reference market rate’ as well as a ‘lottery system’, according to the new guidelines.
The method for determining the Reference Market Rate (incorporated for the first time since the state adopted the setting of the MRC) states that if the difference in the market rates determined by two selected valuers is less than 20 per cent of the lower value, the average value of both the valuations will be considered as the reference market rate.
In the second case, if the difference between the two is more than 20 per cent, the reference market rate can be fixed at 10 per cent more than the lower valuation. “Only if this is not acceptable, the sealed report of the third valuer shall be opened and the reference market rate shall be finalised by taking the average of the two lowest valuations,” the guidelines says. The MRC will be formed at each district level to resolve the issues of compensation of affected land and to fix the market rate. For the valuation of the land, it will appoint land valuers who are empanelled by the Insolvency and Bankruptcy Board of India. Three valuers (one by the landowners’ representative, one by the TSP and one by the District Collector) will be appointed on the day of the committee meeting itself.Story continues below this ad
Farmers at the protest site, Upwas Chhavni, in Jetpar village in Morbi, Gujarat (File photo)The appointed evaluators will submit their independent reports in a sealed cover directly to the District Collector within 21 days of their appointment by the MRC. After receiving all three reports, two will be opened by the District Collector by randomly selecting them through a ‘lottery system’.
The District Collector can allow immediate commencement of physical works of transmission lines without any hindrance on condition of payment of compensation based on the market price as determined by the MRC. The provisions of the GR published with the ‘in-principle approval and approval received’ from the Finance Department, Revenue Department and Agriculture and Cooperation Department through letter on July 4, 2026 are equally applicable to all new transmission lines of 66 kV and above to be laid in the Gujarat and to all works of transmission lines of 66 kV and above which are currently in progress.
New Compensation Norms
Adani power infra: Gujarat government notifies new compensation policy for farmers The Indian Express
Gujarat revises compensation after farmers' protests over Adani project National Herald
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