The government’s investigation into corruption at Delhi Gymkhana Club, which began three and a half years ago, has failed. A recent order from the National Company Law Appellate Tribunal (NCLAT) has raised serious questions about the Ministry of Company Affairs and the efficiency of the Indian bureaucracy.
The issue of corruption at Delhi Gymkhana made headlines in 2020. The Government of India intervened and, on February 15, 2021, NCLAT dissolved the club’s working committee, handing control to the Ministry of Company Affairs (MCA). Former bureaucrat Vinod Yadav was appointed as the administrator. However, he too faced allegations, and was replaced by controversial officer Om Pathak. Pathak, however, soon became embroiled in his own set of corruption accusations. This led to his removal and the appointment of a new board of directors. NCLAT has now ordered that the board must vacate its position by March 31, 2025.
Allegations of nepotism, fake memberships, and financial mismanagement have long tarnished the club’s reputation. The government claims that financial irregularities amounting to Rs 40 crore have occurred at the club. Despite these claims, no significant steps have been taken by government representatives to investigate the matter. Meanwhile, the club’s legal fees have reached nearly Rs 9 crore. The club’s president, Malay Sinha, has also been accused of tampering with a forensic audit report, which has yet to be made public. Sinha is allegedly protecting key figures accused of corruption.
The case escalated when the issue of a drone being flown near the Prime Minister’s residence sparked controversy. The then DCP of New Delhi and local police officials were accused of mishandling the situation. Witnesses were reportedly threatened, and despite a court order on May 29 this year for a re-investigation, the police have failed to act. Further criticism has been directed at the National Company Law Tribunal (NCLT). Colonel Ashish Khanna, the club’s former secretary who supported the government investigation, became a target of bureaucratic action. NCLT even blocked his email account, triggering a legal response. The Delhi High Court has now issued notices to senior NCLT and Ministry of Corporate Affairs officials.
Ashish Verma, the former club director accused in the drone incident, was appointed to NCLT despite ongoing investigations into his role. The Delhi High Court has called on the Ministry of Corporate Affairs to justify this decision. Additionally, there have been serious allegations that club employees who testify as witnesses in corruption cases are being fired from their jobs. Following a complaint by whistleblower Niji Sapra, NCLAT has instructed these individuals to file complaints with the Witness Protection Cell.
The government’s failure to resolve any cases in the past three years has cast doubt on its ability to address these issues in the remaining five months. NCLAT has ordered that the election of a new working committee be completed by March 31, 2025. The newly elected committee will be responsible for the club’s management. The government-appointed board must also address all pending complaints by the same deadline.
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