Centre moves NCLT to take charge of Delhi Gymkhana Club

The Centre has moved a petition seeking a change of management of the Delhi Gymkhana Club and appoint its 15 nominees as administrators to run the affairs of the sprawling facility in Lutyens’ Delhi.

The petition was filed by the ministry of corporate affairs in the National Company Law Tribunal, seeking action under Section 241 and 242 of the Companies Act that allows a member of a company or the government to seek relief if the affairs of the entity are being run in a manner “prejudicial to public interest” or is “oppressive”, among other things. The Tribunal has issued notices and the case is to come up for hearing on Friday.

The government had used the same provisions of the Companies Act to get the NCLT approval to supersede the board of IL&FS.Sources said the move follows an investigation ordered by the ministry following complaints from members of the Delhi Gymkhana Club which is adjacent to the Prime Minister’s residence.

Apart from accusations of alleged mismanagement, there were allegations of the 107-year-old club accepting “deposits” in the form of application fee that was over Rs 1 lakh. The club does not pay any interest on the money during the waiting period, which can stretch from 15 years to 30-35 years.

On April 10, 2019, TOI had reported about the MCA investigation. The preliminary findings had referred to an increase in the application fee for the government category from Rs 5,000 in 2000 to Rs 1.5 lakh now. For non-government applicants, the fee has gone up from Rs 5,000 to Rs 7.5 lakh during this period.

The funds collected as application fee was invested in securities and deposits that would fetch returns. The Club’s president Lt-Gen DR Soni could not be reached over phone for comment.

A text message sent in the evening did not illicit a response. Government sources said that the issue was under investigation for a long time and action was being contemplated for a while.

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