Delhi Gymkhana Club followed an illegal way of giving permanent membership

New Delhi, April 26 (IANS) The Ministry of Corporate Affairs has found that the Delhi Gymkhana Club has been adopting an illegal way of inducting people for permanent membership of the club.

“The violations are of extremely serious and grave nature, which indicate the GC members have been acting autocratically to the benefit of a few chosen members of Delhi Gymkhana Club in a hereditary manner, at the expense of the general public,” the MCA said.

The Centre has moved a petition in National Company Law Tribunal (NCLT) seeking a change of management of the Delhi Gymkhana Club by immediate appointment of government’s 15 nominees as administrators in the General Committee and transfer of absolute power to run the affairs of the posh club located adjacent to the PM’s residence.

Citing the reason for seeking a change of management by bringing to light several irregularities, the Ministry of Corporate Affairs in its investigation found that the Delhi Gymkhana practice of culling out the proportion from the non-government category and giving it to a new category of waiting i.e UCP is an illegal way of inducting people for permanent membership.

Article 12 read with Article 8 (1) of the Articles of Association (AoA), states that UCPs are those members whose names should appear for election of membership and such waiting period for UCPs to permanent members should be the difference of two successive general committees only.

On examination of records and the statement of Ashish Khanna, Club Secretary, it is found UCPs holders are given non voting membership culling out 25 per cent of the non government permanent members (voting rights), which is 50 per cent total active members as per AoA.

These UCPs are in queue for permanent membership through their UCP membership may take 6-7 years to become a permanent membership.

“The GC is well aware that there is a waiting list for the non-government category for a period of almost 37 years. Culling out the proportion from the non-government category and giving it to a new category of waiting i.e UCP is an illegal way of inducting people for permanent membership,” the report said.

The inspection report dated March 30, 2020, has detailed the numerous violations and the rampant mismanagement of the affairs by the General Committee wherein the GC has been acting ultra vires the Articles of Association to the detriment of considerable public interest.

Further to say UCPs include those members coming from another self created category i.e Green card Holders who are dependents of the permanent members.

The company maintains different lists of Green Card Holders, different waiting list of UCPs, eminent, government and non-government categories, for permanent membership.

The investigation also found that the total expenditure during the said period 2014-15 to 2018-19 of the company is Rs 272.31 crore, of which only 2.77 per cent, less than 3 per cent of expenditure is towards sports and towards employee benefit is 38.78 per cent and towards consumables is 30.11 per cent.

Thus the admitted picture of income and expenditure accounts indicates that the company has a minimal income and expenditure of sports activities which is not in tune with the object clause of the moa of the company.

Further, 30.34 per cent of the company’s expenditure is in the form of catering consumables, wine and beverages and cigarettes.