Supreme Court Issues Notice To Gymkhana Club President In Contempt Case

The Supreme Court of India has issued a contempt notice to Malay Sinha, the government-nominated President of Delhi Gymkhana Club, in response to a petition filed by the club’s former CEO, Ashish Khanna.

The case highlights a series of allegations involving financial scams, fake memberships, destruction of evidence, and ongoing judicial violations by the club’s leadership.

Malay Sinha, a retired Special Director of the Intelligence Bureau (IB), was initially appointed as a board member of the Delhi Gymkhana Club to investigate alleged financial irregularities.

With the support of select bureaucrats, Sinha later assumed the role of president.

However, instead of initiating a probe into the existing scams, Sinha has allegedly engaged in corrupt practices himself, while government authorities have reportedly protected him from accountability.

The Supreme Court issued the notice after petitioners alleged that Sinha failed to carry out court-mandated investigations and took no action against the accused.

Instead, serious charges have emerged against the very officials appointed to clean up the system.

Violation of Court Orders

Senior advocate CA Sundaram, representing Ashish Khanna, argued that the club leadership had violated the National Company Law Appellate Tribunal’s (NCLAT) order dated 21 October 2024, which upheld earlier NCLT directives from 2022.

The club’s directors failed to file quarterly Action Taken Reports, present financial statements, and conduct elections by 30 June 2025, as instructed.

The NCLT had dismissed Khanna’s earlier contempt petition in August 2024, ignoring critical facts and prompting him to seek relief from the Supreme Court.

A bench comprising Justices JK Maheshwari and Vijay Bishnoi has now directed Malay Sinha and others to respond within six weeks.

In June 2021, an FIR was lodged against six former directors and four staff members for misappropriating ₹45 crore.

The court subsequently transferred the case to the Economic Offences Wing (EOW).

A 2022 forensic audit report uncovered ₹46 crore in unauthorised investments, some allegedly made through conflicted relationships.

For instance, an accused director appointed his tenant, Rahul Sharma, as an investment advisor.

Khanna further alleged that Sinha and other directors recommended a lawyer and authorised a ₹6 crore payment as legal fees without following due process.

EOW Investigation and Judicial Concerns

Magistrate Yashdeep Chahal of Patiala House Court raised concerns in May 2024 over the EOW’s conduct, particularly regarding witness protection and the superficial nature of their investigation.

He ordered senior police officials to ensure a fair probe.

Allegations suggest that Sinha interfered with the investigation, urging the EOW to disregard court directions.

NCLAT’s 2024 ruling referenced these concerns and underlined the role of the current leadership in obstructing justice.

Complainant Nidhi Sapra accused NCLT of shielding key accused Gaurav Liberan and Mandeep Kapoor, further complicating the case.

With the Supreme Court now intervening, the controversy surrounding the Delhi Gymkhana Club may finally see substantive legal scrutiny.

The case is shaping into a critical test of judicial oversight in curbing institutional corruption within elite government-backed establishments.

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