Centre’s panel takes over Delhi Gymkhana’s affairs

On Sunday, the Centre named a 6-member panel after the NCLT, on Friday, gave its nod to the government to take over the club.

The Union government on Sunday appointed a six-member panel to formally take charge of the Delhi Gymkhana Club, two days after the National Company Law Tribunal (NCLT) allowed the centre to take over the management of the club.

A file photo of the Delhi Gymkhana Club. (Mint)

“Yes, it is correct that after the government appointed six members pursuant to NCLT orders, the board has taken charge,” said lawyer and BJP spokesperson Nalin Kohli, who is among the members. The members have been appointed as directors of the general committee of the club.

The other members named in an order issued by the ministry of corporate affairs on Sunday are: former secretary of the ministry of electronics and information technology Ajay Sawhney, former intelligence bureau chief Malay Kumar Sinha, BJP member Kuljeet Singh Chahal, former director general of the Sashastra Seema Bal (SSB) Kumar Rajesh Chandra, and former Indian Revenue Officer Ashish Verma.

The tribunal on Friday ruled that there was sufficient evidence of mismanagement of club affairs. In a scathing judgment, it said that there were “irregularities of a grave nature of the conduct and affairs” of the club, contrary to the memorandum of association.

“For the period beginning from 2014-15 onwards, the club adopted the method of increasing the registration fee, additional registration fee, application processing fee, etc and invested this amount on the interest-bearing investment/mutual fund, and the amount of income generated then become part of the income of the club,” the order said.

The former board members had argued that the allegations were based on “irrelevant complaints” made by a few members.

In April 2020, the government through the corporate affairs ministry moved NCLT under sections 241 and 242 of the Companies Act, 2013, seeking to supersede the club’s general committee.

Sections 241 and 242 of the Companies Act deal with oppression and mismanagement and give wide powers to the tribunal, which include removal of the managing director, manager or any of the directors of the company and recovery of undue gains.

Delhi Gymkhana Club, initially registered as Section 8 company with specific objectives related to sports and pastimes, obtained land on lease from the government.

The government had alleged that over a period of time, it had slightly started drifting away from the permitted objectives which may also impact subsistence of lease.

In its petition, the Centre had alleged “parivarwaad” (nepotism), financial irregularities, misuse of the allocated land and issues related to membership.

The allegations have been upheld by the NCLT. It asked the central government to appoint 15 administrators, with six appointments already made on Sunday