DIAL Moves Supreme Court Over Delhi HC Order to Vacate GMR Chief’s Luxury Farmhouse

Rao, who heads the GMR Group operating Delhi Airport, has been residing in a farmhouse spread over 2.45 acres with a 30,000 sq. ft. built-up area, for which a monthly rent of Rs. 45.6 lakh is paid.

Court filings revealed that DIAL had leased the property from Indus Sor Urja in 2020 and spent a “substantial amount” to make it suitable for Rao’s residence. However, in 2024, Indus Sor Urja sold the property to Onkar Infracon for Rs. 115 crore, paying Rs. 9 crore in stamp duty.

Following the purchase, the new owner terminated the lease and sought possession. When DIAL resisted, Onkar Infracon moved the Delhi High Court. On September 1, Justice Subramonium Prasad, in a detailed 59-page judgment, ruled that the lease deed relied upon by GMR entities was unregistered and therefore unenforceable. The Court had held that the arrangement amounted to a month-to-month tenancy, which had been validly terminated, and directed DIAL to vacate the farmhouse and hand over possession.

DIAL has now challenged the High Court judgment before the Supreme Court.

The case revolved around a luxury 2.45 acre farmhouse located in Bijwasan, New Delhi, spread over 30,000 square feet and equipped with lawns, a swimming pool and other facilities. In April 2020 Delhi International Airport Ltd, a GMR Group entity, entered into a lease agreement with the then owner M/s Indus Sor Urja Pvt Ltd at a rent of 39.6 lakh rupees per month, later revised to 45.6 lakh rupees. The property was used as the official residence of the group’s chairman. The lease deed however was never registered. The High Court emphasized that without registration, the document had no evidentiary value to establish the lease period.

The original lessees were three GMR companies. At a later stage a fourth GMR entity began paying rent and claimed to have substituted one of the earlier lessees, but no formal substitution deed was ever executed. On 20 May 2024 Onkar Infotech purchased the Pushpanjali property from Indus Sor Urja through a registered sale deed after paying 115 crore rupees along with nearly 9 crore rupees in stamp duty and registration charges. The sale deed was duly executed and registered. Following the sale, Indus Sor Urja informed the defendants about the transfer and Delhi International Airport Ltd acknowledged the change in ownership, even requesting bank details from Onkar to remit rent payments.

After taking possession as owner Onkar Infotech served a termination notice dated July 7, 2024 on the GMR companies. The notice stated that since the 2020 lease deed was unregistered, the arrangement was only a month to month tenancy under the Transfer of Property Act. The defendants were asked to vacate the farmhouse by July 2024. Onkar also stopped accepting rent after issuing the termination notice. When GMR entities refused to vacate, Onkar filed the present suit for possession.

The GMR Group opposed the suit claiming that the lease had been extended until 2028 and accusing the plaintiff of concealing material facts. They argued that the Delhi Land Reforms Act and the Delhi Land (Restriction on Transfer) Act applied and therefore the civil court lacked jurisdiction. They alleged that the plaintiff had projected facts in a distorted and incorrect manner.

The High Court rejected these defences. Justice Prasad ruled that an unregistered lease deed cannot be relied upon to establish the lease period. The court clarified that the Delhi Land Reforms Act did not apply since the land was being used for residential purposes of the GMR chairman and not for agricultural or horticultural purposes. The contention that the suit was barred under the DLR Act was therefore dismissed. The court observed that none of the ingredients of Order VII Rule 11 of the Civil Procedure Code were attracted to the case.

The judgment noted that in the absence of a valid written contract the tenancy was governed by Section 106 of the Transfer of Property Act which prescribes that a lease from month to month can be terminated by either party with fifteen days’ notice. The court observed that the notice served by Onkar Infotech complied with this requirement and the tenancy had therefore come to an end. The plea that the lease continued till 2028 was found to be unsustainable in law.

The High Court accordingly decreed possession in favour of Onkar Infotech and directed the defendants including Delhi International Airport Ltd and other GMR Group entities to vacate the farmhouse. With this order the luxurious Pushpanjali Farms residence will now revert to Onkar Infotech which had purchased the property through a registered sale deed in May 2024. The ruling reinforces the principle that unregistered lease deeds cannot be relied upon to extend tenancy rights and that such arrangements will be treated only as month to month tenancies terminable by proper notice.