The order effectively revives the long-standing tussle between the Centre and the club over the status and control of the property, which has historically been linked to the government through lease arrangements. 

The National Company Law Tribunal (NCLT) observed in June 2020 that the ‘mentality’ of the club continued to be ‘imperial’ and upheld the allegations of corruption in construction projects, out-of-turn membership, exorbitant fees, and favouritism. The Narendra Modi government’s decision to appoint an administrator to oversee the Delhi Gymkhana Club was the move towards getting the “imperial mentality” out of the posh club, in the words of the NCLT. The appointment of Manmohan Juneja, OSD with the Ministry of Corporate Affairs, came after the NCLAT allowed the government to, in effect, take over the club, upholding the NCLT’s 2020 decision to dissolve its general committee.

The club is spread in over 27 acres on Safdarjung Road adjoining the Prime Minister’s residence, having moved to this location 108 years ago. It was initially called the Imperial Delhi Gymkhana Club, but post-Independence, the word ‘imperial’ was dropped. The club’s members include Rahul Gandhi, Smriti Irani and Suresh Prabhu, along with civil servants, armed forces officers and industrialists.