Delhi Gymkhana Club Scandal: Multiple Complaints Emerge Amid Security Breach and Alleged Rs 50-Crore Corruption Charges

Delhi Gymkhana Club Ordered to Vacate Land Parcel Amidst Corruption and Financial Irregularities

The Ministry of Corporate Affairs (MCA) has ordered the Delhi Gymkhana Club to vacate its 27.3-acre prime land parcel by June 5, citing critical national security and defence infrastructure needs. The club has moved the Delhi High Court and has urged the Centre for reprieve.

The MCA had pointed out several unlawful practices at the Delhi Gymkhana Club after its inspection in 2022. The key notings from the document include Rs 50-crore corruption in DGC public deposits, national security breach, and illegal appointments.

Financial Irregularities and Corruption

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The ministry noted that the supplementary inspection report pointed out grave financial irregularities, malfunctioning of records, and operation of the club in violation of the Companies Act, 1956 and Companies Act, 2013. The club collected public deposits to the tune of Rs 50 crore, which is a serious issue and a big lapse on the part of the remaining members of the General Committee (GC).

The Ministry of Corporate Affairs also noted that the DGC has fraudulently spent over Rs 4 crore of public funds, in defending few corrupt board members by false accusations on affidavit.

National Security Breach

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The ministry noted that with regard to the breach of national security by the club on August 13, 2022, by flying a drone during a rally in close proximity to the Hon'ble PM's house, an FIR was being registered by DCP, New Delhi district, against a GC member and others.

Appointments and Record Mismanagement

The ministry noted that the General Committee is in violation of the provisions of the Companies Act, as it cannot hold a valid board meeting required by the Company to be held every month. This is a very serious issue and a big lapse on the part of the remaining members of the GC.

The MCA officials repeatedly noted that the GC lacked legal quorum, decisions taken by it could be "void ab initio," including appointment of a new Secretary. Col. Ashish Khanna supported the Government's case before NCLT, and alleged he was removed for doing so.

Government Intervention

In April 2022, NCLT suspended the old GC and directed the Central Government to appoint 15 members to run the Club. Only 6 members — M. Sinha, IPS (Retd.); K.R. Chandra, IPS (Retd.); A. Verma (IRS); A. Sawhney (IAS); Nalin Kohli; and K. Chahal — were initially appointed. Chandra later resigned, reducing the quorum below the required 6 members.

Member's Reaction

Retired Colonel Manchanda told the media, "The PM's house has shifted so the security connotations have changed...It is difficult to understand. We stay across two hotels, how does that not affect security?...Also, a major security breach was reported at PM's house last year. I have been a member for nearly half a century. This is just an excuse to have the club evicted."

Ex-board member and complainant Niji Sapra said that she was suspended for a year as a whistleblower against the previous board, which was running in violation of the MCA guidelines. She said that the cronies of the DGC have systematically committed financial fraud.