In 2020, proceedings under the Companies Act began against the club for alleged mismanagement
Questions were also raised around appointments and allegedly failing to comply with directives from the National Company Law Appellate Tribunal.
Reports also mention complaints from members and employees against certain directors
Delhi Gymkhana Row: Club Allegedly Owes Rs 47 Cr Unpaid Rent Dues
Over the past nine months, the Land and Development Office under the Ministry of Housing and Urban Affair has reportedly issued three notices to the club
Summary
With the recent notice to Gymkhana Club in Lutyens Delhi to vacate its premises by June 5 making headlines, the elite club now finds itself under the scanner for alleged rent dues of more than Rs 47 crore.
Over the past nine months, the Land and Development Office (L&DO) under the Union Ministry of Housing and Urban Affair has reportedly issued three notices to the club directing it to clear dues amounting to Rs 47,58,91,317.
According to a CNN-News18 report, one of the notices said “failure to comply with these directions and remit the outstanding amount of Rs 47,58,91317 crore within the stipulated seven-day period will constrain this office to initiate re-entry proceedings for the premises, in accordance with the terms and conditions of the lease deed."
Apart from the outstanding dues, in 2022, the club was also caught in regulatory crosshairs with an inspection by the Ministry of Corporate Affairs, alleging financial mismanagement concerning public deposits of around Rs 50 crore.
Questions were also raised around appointments in the club and allegedly failing to comply with directives from National Company Law Appellate Tribunal. Reports also mention complaints from members and certain employees against certain directors.
Notably, in 2020, proceedings-under Companies Act- began against the club for alleged mismanagement. Thereupon, the National Company Law Appellate Tribunal placed the management and control of the club under governmental regulations.
About the recent eviction notice to the club, the Land and Development Office mentioned clause 4 of lease deed from 1928 says that the premises can be taken back, partially or fully, if so required for ‘public purpose’. The notice cited defence infrastructural needs.
A suit filed in the Delhi High Court by Vimal Khurana with ‘support of more than 500 members’, according to the Indian Express, highlighted “continued and concerted course of conduct to progressively assume control” over the assets of the club and even the club itself while opposing the recent notice.
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