Supreme Court Stays Delhi HC Order Directing GMR Chief to Vacate Pushpanjali Farms
SC stays Delhi HC order, allowing GMR to temporarily retain Pushpanjali Farms amid lease and property dispute
The Supreme Court on Wednesday stayed the Delhi High Court’s September 1 order directing Delhi International Airport Ltd (DIAL) and other GMR Group entities to vacate Pushpanjali Farms, the southwest Delhi property currently serving as the residence of GMR Group Chairperson G. M. Rao.
The Bench of Justice Aravind Kumar and Justice N. V. Anjaria made the interim order absolute while issuing notice on DIAL’s appeal, scheduling the matter for further hearing on October 29.
The Bench clarified that the High Court’s order would remain on hold for the time being.
Pushpanjali Farms spans 3.81 acres, with a 30,000 sq. ft. residence, landscaped lawns, and an outhouse. In April 2020, 2.45 acres of the property, including the main house, were leased to DIAL and other GMR affiliates at Rs. 39.6 lakh per month, later revised to Rs. 45.6 lakh. The farmhouse was used as the official residence of G. M. Rao, with the company claiming substantial investment in amenities, including a swimming pool.
During the hearing, Senior Advocate Abhishek Manu Singhvi, representing DIAL, questioned the High Court’s summary judgment. “How can a summary order be passed in the impugned manner? The court has barred moving civil courts under the Delhi Land Reforms Act. The high court examined the matter summarily under the Commercial Courts Act, short-circuiting crucial issues. The land is still recorded as agricultural, and disputes over its use remain triable,” Singhvi argued.
On the contrary, Senior Advocates C. A. Sundaram and P. S. Patwalia, appearing for Onkar Infotech; the purchaser of the estate, stressed that land usage was decisive. “While the land may be agricultural, its use as a luxury residence is key. The lease expired in March, making the occupation unlawful,” Sundaram submitted. Patwalia noted that GMR attempted to buy the farmhouse, but when the deal failed, Onkar Infotech purchased it for ₹115 crore.
The Bench also queried whether DIAL would shift to another residence.
Singhvi contended that the lease was extendable until March 2028, with monthly rent being paid regularly at ₹60 lakh.
In its interim order, the Supreme Court directed notice to be issued on DIAL’s petition, allowed four weeks for filing a counter-affidavit, and two weeks thereafter for a rejoinder, with the next hearing fixed for October 29.
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 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.
Case Title: Delhi International Airport Ltd v. Onkar Infotech Pvt Ltd.
Hearing Date: September 10, 2025
Bench: Justice Aravind Kumar and Justice N V Anjaria