Analysis

Davis Cup Scam: Clean Chit To Former Congress And BJP Leaders

Davis Cup Scam: The government directors of Gymkhana have given a clean chit to a former Congressman and a BJP leader in the alleged Davis Cup scam in the club. This information has been given in the annual report presented before the 2022 general body meeting. To avoid ruckus in the meeting, an order has been issued to include only 20% of the members. Due to this, there is a lot of anger among the club members.

The government director appointed to probe the scams and irregularities in the gymkhana himself seems to be embroiled in allegations of a cover-up on corruption cases. In March this year, a clean chit has been given to a former Congressman and a BJP leader.

They both were accused in the alleged scam in the name of Davis Cup, despite objections from the auditor. Due to which questions are also being raised on the role of government management of Gymkhana.

The members allege that the government management is working under a conspiracy to suppress their voice. Therefore, it has been deliberately decided to hold the general body meeting in a virtual manner. Not only this, only 20 percent of the members will be included in this.

The Tainted Government Director’s

In the annual report of 2022, the auditor has raised questions about the agreement and conditions made in the context of the Davis Cup held in March.

Keep in mind that after this tournament, the NCLT had ordered the removal of the then administrator Om Pathak and secretary Jatinder Pal Singh and appointment of 15 directors. According to the auditor, this has not been mentioned anywhere in the club records.

The club had asked the All India Tennis Association, the organizing body for this, for about three and a half crore rupees spent by the club. But the association has given back only twenty six lakhs only. Significantly, in the name of this tournament, an amount of more than ten crores was raised in the name of sponsorship.

In this case, questions were also raised on the role of the then administrator Om Pathak. Because it was he who had written to various departments asking for money for sponsorship. But the government directors of Gymkhana, in their reply, did not say anything about compensation for the loss caused to the club. but only said that there is no dispute regarding this matter and the matter is being discussed with the Ministry of Corporate Affairs.

It is alleged that a former bureaucrat nominated by the central government is trying to cover up the alleged scam of former administrator Om Pathak and secretary Jatinder Pal Singh. Due to which there is a lot of resentment among the members.

Special people will be able to take part in the general meeting

Talking about the members of the club, at present the club has 15091 members under various categories. Out of these, only 5206 members have the right to vote.

The members allege that some lenient directors appointed as directors in the club after retirement do not want any questions to be raised about their activities. This is the reason why they have decided to conduct the general body meeting in a virtual manner. That is to be held on 30th December, 2022. In this also only one thousand members can take part and vote. It is clear from this that there is a flaw in the intentions of the government directors.

Objection on payment by legal firm’s

Since the Corona period, the club management was facing allegations.  some of which were that it had spent more than one crore rupees of the club by appointing several members of the club for legal battles. Now the same allegation is being leveled against the government directors as well.

The auditor has questioned the amount recovered by the law firm in legal disputes related to the club. It states that the law firm charged on an hourly basis. The club did not even try to set a cap on hours or monitor the matter. Equally, in lieu of internal meetings, the law firm has collected money.

In this case, instead of giving a detailed answer, the Government Directors have only replied. They said that the payment has been made with the permission of the concerned authority. Members allege that one of the directors of the club is paying several times more than before to benefit his special law firms.

Management bewildered by the initiative of the members

Significantly, the decision to call the general body meeting has been taken by the government directors. This was done following the initiative of the club members. 30 senior members of the club had sent an email to the club demanding to call an emergency general meeting.

Under the Companies Act, it is mandatory to call such a meeting after a written demand of 30 members. But instead of holding an emergency general meeting on the basis of agenda of 30 members, the government management got angry with the allegations against itself. They decided to call the general meeting in just 24 hours.

For which the requirement of minimum 21 days notice has also not been followed. In protest against this, 30 members have demanded to call an emergency general meeting again on Monday. It is alleged that a bureaucrat appointed as director is trying to suppress the auditor’s objections. And also  members’ allegations that surfaced during the tenure of former administrator Om Pathak and secretary JP Singh.

Subodh Jain

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