Losing Confidence In MCA and NCLT, Gymkhana Club Members Preparing To Go To HC By Rejecting Balance Sheet

The club members have once again rejected the government directors appointed in the name of investigating corruption and financial irregularities in the Delhi Gymkhana Club. The effort to get the club’s annual accounts approved for the last three years has once again failed. The surprising thing is that the members are making serious allegations against the official directors of the club. But neither the ministry nor the officials of the Corporate Affairs Ministry are acting upon the situation. Therefore, a large group of members are not trusting NCLT. These people are now preparing to file a writ in the High Court against the government directors.

The Ministry of Corporate Affairs, which made its favorites government directors in the Delhi Gymkhana Club with claims of good governance, has not been able to take even a single step in the last two years that would lead to transparency or an impartial investigation into corruption. The situation has become such that the directors appointed in the club themselves seem to be implicated in corruption charges. This is why club members have canceled the club’s annual accounts for the third consecutive year. Despite adopting various tactics, the government director could garner the support of only 30 members out of 358.

No actions taken in the case of Gymkhana club

According to sources, in the year 2022, Finance Minister Nirmala Sitharaman herself was informed about the financial fraud of more than Rs 50 crore that took place in the club. Officials of the Ministry of Corporate Affairs had also informed him about illegal drone flying near the PM’s residence, but the president of the club appointed by the Ministry himself kept this information hidden. The allegation is also that the current president is not taking any action against those accused of fraud, on the basis of which the government had filed a case against Gymkhana in NCLT in 2020.

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Davis Cup scandal covered up

It is noteworthy that during the Davis Cup event at Gymkhana Lab, the then administrator Om Pathak and Secretary JP Singh were accused of fraud worth crores of rupees in the name of sponsorship. Since Pathak is the Secretary of BJP’s Disciplinary Committee, instead of taking action against him, the Government Director was busy whitewashing the matter. In the AGM of the club, every effort was made to approve the loss of about Rs 28 crores. During this, club president Malay Sinha claimed in writing that there is no dispute regarding Davis Cup. This was the reason why most of the members rejected the AGM and also demanded filing of FIR in CBI.

The legitimate demands of members not fulfilled

In May 2023, 570 senior members of the club demanded calling an emergency general meeting against the allegations of hiding corruption. The EGM was agreed upon and announced on 15th May. But Chairman Malay Sinha and a director, along with FIR accused Mandeep Kapoor, BS Randhawa and G Liberhan, accused in corruption cases, secretly got the EGM canceled on 01 June 2023 through NCLT by using emails against 570 members.

Forensic audit report hidden from auditors and members

The main excuse given by NCLT for canceling the EGM was that Deloitte and Mazars forensic audit was being conducted to verify scams and membership. But on 30.12.2023 Malay Sinha again held AGM for 2020-21, 2021-22 and 2022-23 through e-voting only. In such a situation, members questioned that when Sinha has not submitted the final Deloitte or Mazars forensic audit to the auditors, NCLT or NCLAT, then how is the AGM being called? In the AGM report, statutory auditor BJ Singh objected to spending Rs 25 lakh on Mazar forensic audit. Not only this, that report was also not being provided to them. The auditor also informed all the members that the GC had violated the Company Law in filing the AGM report and balance sheet.

Gymkhana Club members angry over resignation of statutory auditor

Among the 26 other objections raised by the auditor, the main issue was Davis Cup fraud worth crores of rupees and expenditure of about Rs 4 crore on legal matters in 2 years by the ministry-appointed GC. In many cases, the auditor wrote that he was not given information or verified bills. The auditor also alleged that the committee members, along with the women employees, had siphoned off more than Rs 7 lakh in taxi bills. Even after a fine of Rs 1.5 crore was imposed by Delhi Regional PF Commissioner Utkarsh Jeet Singh on 12 November 2023 for criminal intent, the big scam in the Provident Fund was hidden from the AGM. The surprising thing is that information about this fine was not given in the AGM balance sheet of 15.12.2023. In the AGM notice it was announced that the auditor had declined to continue. But no proposal to appoint a new auditor was announced.

Confidence in NCLT lost

Members are writing openly in the WhatsApp forum group on scams by persons accused by the government in NCLT and CBI probe by Malay Sinha in covering up Davis Cup, AGM frauds. Bharat Express had also reported in October that forensics had named the accused in the EOW FIR in connection with tampering and forgery in the club’s liquor license. Members say that since NCLT was already aware of the 2021 and 2022 AGM rejection, it did not do anything. Therefore, the members are now preparing to file a writ petition in the Delhi High Court.