Delhi Gymkhana to get govt administrator, rules NCLAT

The NCLAT had also said that the Delhi Gymkhana club, which is in the midst of a takeover battle with the Centre, will not be allowed to make any “new policy decisions, appoint new members and/or begin new constructions”

In a major relief to the government, the National Company Law Appellate Tribunal (NCLAT) has acceded to its demand to appoint an administrator to oversee the “mismanagement at the Delhi Gymkhana”.

The Delhi Gymkhana Club. (HT archive)

“Prima facie evidence of mismanagement has been found,” said a senior ministry of corporate affairs official. “The court has found that it is prejudicial to public interest and has asked for a government administrator to be appointed,” the official added.

HT reached out to officials at the Delhi Gymkhana but did not receive a response immediately.

On June 26 last year, HT had reported that the tribunal had asked the government to appoint two nominees to the governing body of Delhi Gymkhana Club and also set up a five-member committee to look into the alleged irregularities.

The NCLAT had also said that the Delhi Gymkhana club, which is in the midst of a takeover battle with the Centre, will not be allowed to make any “new policy decisions, appoint new members and/or begin new constructions”.

The Delhi Gymkhana, which shares a wall with the Prime Minister’s residence, has been under investigation for around three years. The Central cited “parivarwaad” (nepotism), financial irregularities, misuse of allocated land and issues related to membership as the primary reasons behind its move to acquire the club.