New Delhi, Sep 11 : The Delhi Gymkhana Club (DGC) members have written to the Ministry of Corporate Affairs (MCA) declaring that the famous club has begun to lose its luster due to inconsistencies in managing its day-today affairs as well with an avalanche of violations — ranging from Companies Act to the Articles of Association — that were committed by the management nominated by the Centre.The club came under the direction of the administrator nominated by the government on February 15, 2021 Since then, three administrators have attempted their hand on the management of the club, and, most recently in April, the government announced six directors on the general committee (GC) of the club following the National Company Law Tribunal (NCLT) granted it permission to assume the management of the club.
Violations of the Companies Act 2013, memorandum of association (MoA), Articles of Association (AoA) and the bye-laws of the club the nine members of the last general committee (GC) of the club have written to Rao Inderjit Singh, Minister of State, MCA, detailing a lengthy list of concerns that the government-appointed management is in violation of the Articles in making decisions and running the day-to-day operations of the club.
The email, which was that was sent out by the nine members of the previous GC to the MCA and MCA, reads: “Delhi Gymkhana Club has adhered to the policy of sharing minutes of meetings (MoM) of the General Committees (Board) and its Sub Committees, with the members.Since the transfer of the administration by an administrator, and then an appointed Board of Directors, information about policy decisions, or minutes of any meeting.are not accessible to the members (Shareholders).”
It further stated, “In spite of orders contrary to orders from NCLT/NCLAT, the administrator has been distributing usage cards, even to himself.It was in contravention of the Articles of Association and of the rulings of the Tribunal prohibiting the issuance of new membership cards.”
The email stated that due to the abrupt resignation of the previous chosen GC of DGC The MoM of the GC and its sub-committees has not been confirmed, and the minutes that were not confirmed have been remitted to the MCA to be recorded by the MCA.The members argued that this was an infraction of the integrity of the Companies Act and Rules requiring complete and precise minutes of Board meetings to be recorded in the minutes.”These Minutes containing disputed and not confirmed decisions, as they were recorded as a result of a misunderstanding by the administrator to take decisions that have had an adverse impacts on the running of the organization,” in the letter.
The report further said that the annual accounts statement for 2020-21 was rejected with the majority of 97 percent at the previous AGM which was held by Om Pathak, the administrator.Om Pathak.”The approval of corrected accounts in accordance with the Companies Act is still pending in spite of it being nine months since they were rejected.This is a breach of the Companies Act.The company was required to have the accounts rectified and approved by convening the meeting that was adjourned and then passing the accounts.The procedure has not been followed and the approval of the accounts for period 2020-21 is in the process of being completed,” it added.
In connection with violations of guest bye regulations, the email reads, “Pertaining to entry and use of the club by non-members and also irregularities in the issue of use cards despite the bar set by tribunal’s orders.
Bye-laws of the club require that all guests to sign in by members who have paid a fee for guests them.The administrator organized a variety of functions and also opened the club up for members of the general public without restrictions or the levy of guests’ fees.This led to a the loss of revenue from guest fees.”
The members demanded that the government permit the administration of the club to return to the shareholders who have made personal contributions to the club since 1913, and to allow it to maintain its status as one of the top clubs in India with an aspirational membership.
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