The Supreme Court on Wednesday stayed a Delhi High Court order that had directed Delhi International Airport Ltd (DIAL) and other GMR Group entities to vacate a sprawling farmhouse in southwest Delhi, currently serving as the residence of GMR Group Chairman Grandhi Mallikarjuna Rao.
A bench of Justices Aravind Kumar and N.V. Anjaria passed the interim order while issuing notice on DIAL’s appeal, making it clear that the high court’s September 1 ruling will remain on hold for now. The matter will be heard next on October 29.
The farmhouse, located in Pushpanjali Farms, spans 3.81 acres and includes a 30,000 sq. ft. residence, landscaped lawns, an outhouse, and a swimming pool. In April 2020, 2.45 acres of the estate, including the main house, were leased to DIAL and GMR affiliates at a monthly rent of ₹39.6 lakh, later increased to ₹45.6 lakh. The farmhouse has since been used as the official residence of GMR’s chairman.
In May 2024, the property’s then-owner, Indus Sor Urja, sold it to Onkar Infotech for ₹115 crore. Following the sale, Onkar issued a termination notice in July, refused further rent, and demanded possession.
Senior advocate Abhishek Manu Singhvi, appearing for DIAL, contended that the Delhi High Court had passed a “summary judgment” without a full trial. He argued that disputes over agricultural land are barred from civil courts under the Delhi Land Reforms Act (DLR Act) and that the high court had short-circuited due process under the Commercial Courts Act.
Countering him, senior advocates C.A. Sundaram and P.S. Patwalia, representing Onkar Infotech, argued that the land’s use as a luxury residence was decisive, regardless of its classification as agricultural. They submitted that the lease had expired in March 2024, reducing DIAL’s occupation to unlawful possession. Patwalia further informed the court that Rao had unsuccessfully attempted to purchase the farmhouse before Onkar acquired it.
When pressed by the bench on whether GMR was prepared to vacate, Singhvi said the lease was extendable until 2028 and that DIAL had been paying an enhanced rent of ₹60 lakh per month.
In its September 1 order, the Delhi High Court had declared the 2020 lease deed void for want of registration, holding that GMR’s tenancy was month-to-month and lawfully terminated by Onkar. The court reasoned that the property was used as a luxury residence, making the DLR Act inapplicable, and directed DIAL and GMR entities to vacate the farmhouse.
Staying the high court’s ruling, the Supreme Court allowed four weeks for Onkar to file a counter-affidavit and two weeks thereafter for rejoinder. “Meanwhile, there will be an interim stay on the impugned order,” the bench said, listing the matter for October 29.
