Last updated:
The MCA inspected the gymkhana and found financial irregularities, record mismanagement, violation of the Companies Act and alleged collection of public deposits amounting to about ₹50 crore.
The Ministry of Corporate Affairs (MCA) inspected Delhi Gymkhana Club in 2022.
Allegations of corruption worth Rs 50 crore, ranging from financial irregularities to illegal appointments and national security violations, the Ministry of Corporate Affairs (MCA) had pointed out several illegal practices at the Delhi Gymkhana Club after its inspection in 2022.
The Center has ordered the club to vacate its 27.3-acre prime land by June 5, citing critical national security and defense infrastructure needs. The club has moved the Delhi High Court and urged the Center to grant relief.
Key comments from the document
- Corruption of Rs 50 crore in DGC’s public deposits
- National security violation and new FIR dated August 13, 2022 against Rajesh Bhatnagar and others
- Illegal, void actions of five nominated directors
- Illegal appointment of former Bhatnagar head Rajiv Hora to the post of secretary.
- CBI visit
- EOW FIR-103/21 notice
- Complaint of members and employees to the government against five directors
- Refusal to comply with NCLAT, NCLT and government orders.
irregularities
Rs 50 crore deposited: “The supplementary inspection report pointed out serious financial irregularities, malpractice of records and operation of the club in violation of the Companies Act, 1956 and the Companies Act, 2013 and the articles of the club and collection of public deposits amounting to Rs 50 crore. The erstwhile members were suspended following a legal hearing in the NCLT,” the ministry said.
hiring: Club members were also appointed illegally. “The general committee There is a violation of the provisions of the Companies Act as it cannot hold a valid board meeting to be held by the company every month. This is a very serious issue and a major mistake on the part of the remaining members of the GC.”
Drone activity and subsequent FIR: The Ministry noted that in connection with the violation of national security by the Club by flying drones during a rally close to the house of the Hon’ble Prime Minister on 13.8.2022, an FIR was being lodged by the DCP of New Delhi District against a GC member and others. Since the police are investigating the matter, no further action is proposed.
Expense: The Ministry of Corporate Affairs also noted that the DGC has fraudulently spent over Rs 4 crore of public money to defend some corrupt board members by making false allegations on the affidavit of the Ministry of Corporate Affairs.
Violation of Prime Minister’s security: What is said in the complaint?
A complaint filed by Ashish Khanna, SM (Retd), was mentioned in a letter signed by then Additional DCP Hemant Tiwari and addressed to the Deputy Director of the Ministry of Corporate Affairs. Delhi Gymkhana Club Limited.
“As per the allegations, Shri A. Verma, the then Secretary of the Gymkhana, in connivance with R. Bhatnagar F&B Manager and some anti-social elements carried out drone activities in the prohibited area, endangering the safety of the Honorable Prime Minister of India. They took out unauthorized Tiranga Yatra in violation of the law of instructions. A. Verma was warned by the DGC staff not to carry out drone activity, but he ignored it… During interrogation, it has come to light that An unauthorized Tiranga Yatra was organized on 13.08.2022 at a place where movement of VVIPs was expected, accordingly, a case under section 186/188/34 of IPC will be registered against the organizer of the Tiranga Yatra.
The complaint is against the then secretary of Delhi Gymkhana Club who went against security protocols during the VVIP movement. As per the complaint, an FIR was registered and investigation was conducted.
After inspection 2022
Ministry of Corporate Affairs (MCA) inspected Delhi Gymkhana Club And alleged financial irregularities, record mismanagement, violation of the Companies Act and alleged collection of public deposits amounting to about ₹50 crore were found. MCA moved NCLT under Sections 241-242 of the Companies Act, seeking suspension of the club’s General Committee (GC).
In April 2022, the 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); KR Chandra, IPS (Retd); A. Verma (IRS); A. Sahni (IAS); Nalin Kohli; And K. Chahal – was initially appointed. Chandra later resigned, reducing the quorum to less than the required 6 members.
MCA officials have repeatedly said that as the GC lacks legal quorum, decisions taken by it, including the appointment of a new secretary, may be “invalid ab initio”. Colonel Ashish Khanna supported the government’s case before the NCLT and alleged that he was removed for doing so. He repeatedly demanded reinstatement/payment of dues.
“Since, as per the Articles of Association of the Company, minimum quorum is not present, no valid meeting of the GC can be held and all actions taken by the GC are void ab initio. Col Khanna has also informed regarding the violation of national security by the Club by flying a drone during a rally close to the house of the Hon’ble Prime Minister on 13.8.2022, resulting in FIR lodged against a GC member by the DCP, New Delhi District Col. Khanna has also informed that in this scenario, the GC appointed a new Secretary on 22.08.2022. It is important to note that in the absence of proper GC, no valid appointment of the Secretary is possible.
Member and retired Colonel Manchanda says, not elite
Retired Colonel Manchanda told New18: “The Prime Minister’s house has changed so the security implications have changed…It is difficult to understand. We stay in two hotels, what impact does this not have on security?…Also, a major security breach was reported last year at the PM’s house. I have been a member for almost half a century. This is just an excuse to evict the club…At the moment, the club is run by the government…We are fighting each other. Government-appointed committee decision Takes it.” Without communicating with the members.”
“There are outstanding complaints in the Ministry of Corporate Affairs and the National Company Law Board and in the High Courts and the Supreme Court. These are corruption complaints which have not been resolved. Whistleblowers have been punished. I was suspended for a year. Another woman’s membership was suspended and terminated.”
“The Employee They have been sacked and replaced with more flexible people… Security is more than enough… They seem to be hiding financial irregularities… The club’s accounts have not been passed for the last 7 years. Membership balance sheet is not shown. The auditors have resigned,” he said.
“There is no transparency in the way the club is being handled Government…We have written to the General Committee, which has signatures of 500 members. Not a single response was received…these documents are in the public domain.”
“It is part of our history and culture…It is not elitist. I am an army man. I am a soldier, my job is to protect the country…No one can inherit…The club is divided into two parts – one interested in membership and the other interested in exposing corruption.”
Some people turned Gymkhana into elite mafia ecosystem: Former board member and complainant Private Sapra
Complainant Niji Sapra, former board member of Gymkhana, said she was a whistleblower against the previous board which was operating in violation of MCA guidelines. As a result, he was suspended for one year. He said that DGC associates have committed financial fraud in a planned manner. She is against the expulsion, she has been a legally elected previous board member, but since she exposed the irregularities, she has lost the membership and subsequently, no authority or institution has heard her complaint. He said that they got membership after waiting for 30 years, whereas there are still many groups in DGC who do not have to wait even a day to get membership there for their future generations. “The government notice is a big blow to those who have misused the club’s reputation and turned it into a typical mafia ecosystem to earn crores,” he said.
read more
