New Delhi, September 11 (IANS): Members of the Delhi Gymkhana Club (DGC) have written to the Ministry of Corporate Affairs (MCA) claiming that the prestigious club is losing its luster, due to irregularities in running its day-to-day affairs and a series of violations – from Companies Act to Articles of Association – which have been engaged by the direction designated by the Centre.
The club came under the control of the government appointed administrator on February 15, 2021, since then three administrators have tried their hand at running the club, and recently in April the government appointed six people as administrators of the general committee (GC) of the club after the National Company Law Tribunal (NCLT) allowed him to take over the management of the club.
Breaches of the Companies Act 2013, Memorandum of Association (MoA), Articles of Association (AoA) and also the Club’s Articles of Association – the nine members of the club’s last elected General Committee (GC) wrote to Rao Inderjit Singh, Minister of State, MCA, detailing a long list of issues where the government-appointed management violated the Articles in making decisions and running the day-to-day affairs of the club.
The email communication, sent by nine members of the last GC to MCA, said: “Delhi Gymkhana Club has followed a policy of sharing minutes of meetings (MoM) of General Committees (Council) and its sub-committees, with members Since the management was taken over by an administrator and later an appointed board, information regarding policy decisions or minutes of any meetings etc., has not been posted. available to members (shareholders).
He added: “Despite NCLT/NCLAT orders to the contrary, the administrator issued use cards, including to himself. This was in violation of the association’s bylaws and court orders prohibiting the issuance of a new membership cards.”
The email stated that due to the sudden dismissal of the last elected GC from the DGC, the MoM of the GC and its sub-committees were not confirmed and these unconfirmed minutes were forwarded to MCA for their records. Members said it was a breach of the sanctity of companies law and rules requiring that full and accurate minutes of board meetings be kept in the archives. “These minutes containing disputed and unconfirmed decisions, as recorded, were misused by the administrator to take action which negatively impacted the functioning of the club,” the email added.
He further added that the statement of annual accounts for 2020-21 was rejected by the general body by 97% of the votes at the last annual general meeting held by administrator Om Pathak. “Adoption of the accounts corrected in accordance with the Companies Act is still pending although nine months have passed since their rejection. This is a violation of the Companies Act. These needed to be corrected and adopted by convening the adjourned meeting and passing the accounts. This has not been done and the closing of the accounts for the year 2020-21 is still pending,” he added.
Regarding violation of guest enforcement laws, the email stated: “Regarding entry and use of the club by non-members as well as irregularities in card usage issues despite the prohibition imposed by court orders. The club’s implementing laws require that all guests be signed by members who pay guest fees for them. The administrator has organized several events and opened the club to members from the public without any restriction or levy of guest fees. This has resulted in loss of revenue from guest fees…”
Members urged the government to allow the management of the club to revert to the stakeholders whose personal contributions have supported the institution since 1913 and enable it to retain its pre-eminent position as one of the country’s premier clubs in India. with ambitious membership.