Delhi Government Plans to Lease Former CM’s Residence to Hotel Operators for Revenue

The Delhi government is considering leasing the former Chief Minister's official residence at 6 Flagstaff Road to a luxury hotel or hospitality operator, officials said. The plan aims to generate revenue from the property while keeping it available for state events.

The sprawling residence in the Civil Lines area will remain accessible for government functions, meetings, and conferences. When not in use for official purposes, the private operator could rent it out or use it for commercial events.

Additionally, the Public Works Department (PWD) intends to complete the unfinished camp office adjacent to the residence. This building will be used for government meetings and state functions, with potential private use during vacant periods.

Under the initial proposal, an established hospitality company could be brought in to professionally manage the main residence. The government is also examining whether the property could be operated under Delhi's bed-and-breakfast policy.

Government requirements will take priority. The residence will be available whenever needed for official conferences, functions, or meetings. During vacant periods, it could be rented out for private programmes, allowing the government to earn revenue while reducing maintenance costs.

Delhi PWD Minister Parvesh Verma stated that the government is exploring partnerships with companies experienced in managing high-end hospitality properties. "We are thinking of tying up with established companies so that the property's maintenance can be managed professionally," he said. "At present, we spend a lot on its maintenance, which is an unnecessary expense. If the property can generate revenue, it would be a better option."

A senior official noted that the proposal would allow the government to retain control of the property without leaving it underused. The initial plan is to make it available for government functions and conferences, and when vacant, it could be rented out.

The proposal is at an early stage and requires necessary government approvals before implementation.

This move is the latest attempt by the current government to decide the future of the politically significant property. Previous options included converting the complex into a state guest house, a cultural centre, or transferring it to the central government in exchange for multiple residential properties. The current proposal retains the property with the Delhi government, reserves it for official use, and commercially operates it when vacant.

The government has also decided to complete the adjoining camp office, where construction stopped after an inquiry into alleged irregularities related to the renovation of the former Chief Minister's residence. The two-storey structure, built on nearly 1,500 square yards, was constructed during 2021-22 and intended as the Chief Minister's camp office. According to information shared in the Assembly, around Rs 25 crore had been spent before work halted, with the total cost estimated to rise to approximately Rs 60 crore upon completion.