Gymkhana President Accused Of Hiding PF Fraud!

In another huge scam against poor staff by Malay Sinha, President, Regional Provident Fund Commissioner Central, Mr MK Nayyer has ordered transfer and Audit of Delhi Gymkhana Employees Provident Fund as also Spot Inspection of records, in fraud over Rs 2 Crore

Gymkhana Club’s financial frauds, crimes endangering National Security, and corruption allegations have again put Club President Malay Sinha in dock. Regional Provident Fund Commissioner charged penalty of Rs 1.5 Crores and ordered Auditor Inquiry on scam that Malay Sinha is covering up to save Chartered Accountant Mandeep Kapur, JP Singh and PF clerks Nawazish Zaidi.

This is the PF fraud

Gymkhana Club’s financial frauds and corruption of over Rs 50 Crores public funds, was apprised to Finance Minister N Sitharaman by Mr Tarun Bajaj, then Revenue Secretary and Director Investigations R Kukreja in September 2022. They had informed that resignation of Mr KR Chandra, IPS from Board was concealed from Ministry and that a breach of National Security by flying drone to PM house had been committed. Even after this gross crime, Ashish Verma and Malay Sinha continued corruption. In March 2022 Manish Nayyer, Regional Provident Fund Commissioner cancelled exemption of Gymkhana Employees Provident Fund and ordered transfer of all securities in 30 days. At that time EOW FIR-103/21 accused JP Singh was Secretary, replaced by Ashish Verma on 03 April who was to transfer 18.7 Crores as per PF Commissioner order of 20 April 2022. But till December, Sinha and Verma retained most securities quietly taking 57 Lakh from Club into staff PF account to cover up fraudulent losses in the Fund. Transfer was done without informing Ministry that appointed them or club members. They hoped that like 8 Crore Davis Cup Fraud, this scam will also go unnoticed by Ministry and EOW.

RPF Commissioner cracked whip

Shockingly Malay Sinha concealed PF scam from EOW as well as Club members and Auditors in December 2022 AGM too. In AGM he also falsely claimed that 1.2 Crore bonus for Davis Cup held in March 2022, had been paid to staff. But he knew PF fraud is one of many crimes alleged by Col Khanna ex Secretary in June 2021 FIR-103, being investigated by EOW where Chair Finance Mandeep Kapur, Secretary JP Singh and President DR Soni are prime accused. Col Khanna had alleged in High Court that Sinha is taking bribes from accused to block CBI and EOW. High Court issued 4 week notice on 31 July on use of dead members cards for liquor that EOW has ignored. But taking strict notice of PF corruption cover up harming Gymkhana employees, Mr Manish Nayyer issued Notice on 7 July 2023 imposing penalty of Rs 1.5 Crore. Then he appointed AAAGCA LLP to do 3rd party Audit. Malay Sinha again deliberately did not inform NCLT, EOW or the Ministry of this.

Auditor Objects to refusal for information

On 31 August 2023 Mr Vishal Verma of AAAGCA wrote to club that they issued many request for information since 07 August to investigate Col Khanna and staff’s complaints of fraud. Giving last opportunity he insisted information be provided by 4 September that Malay Sinha refused. On learning of this PF Commissioner sent in his Squad for Inspection which has raised serious observations on 21 September.

Staff being blocked in Labour courts

Gymkhana Auditor BJ Singh on realising extent of scam has also now filed 55 objections. He again demanded 2022 Mazar Forensic Audit report that Bharat Express first reported on 28 March, was being tampered. Mandeep Kapur, JP Singh, DR Soni and lawyer G Liberhan are named in Forensic Audit which Malay Sinha and Verma had been tampering since November 2022. Importantly Auditor raised objections to huge bills being charged in gratuity and PF claim court cases filed by retired/ removed staff in Labour courts and NCLT. He questioned selection of Khaitan & Company by advocate Nalin Kohli and asked what diligence they have done while charging 2 Crores in 1 year?

Staff being denied bonus and PF claims

On 19 August in a meet when staff angry at their PF funds being cheated challenged Rajiv Hora new Secretary he told them that Ministry appointed Directors are responsible. But reality is that R Hora himself also signed AGM Balance Sheet claiming Rs 1.2 Crore was paid to staff for Davis Cup. Staff claim that apart from blocking EOW by burying all their complaints of crimes, Malay Sinha did nothing to stop the corruption, but are always in free parties or travel abroad. Members complaining of criminal frauds are blaming NCLT for cancelling their EGM demand. Club has become den for FIR accused where even Prime Minister’s security is repeatedly violated, but no action by EOW. Members say directors must pay for the defrauding.