New Delhi: The National Company Law Tribunal (NCLT) on Monday (February 15) ordered the suspension of the Delhi Gymkhana Club's board. The tribunal has also asked the Ministry of Corporate Affairs to appoint an administrator to manage the affairs of the Club. 


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The order comes after several discrepancies in the operation of the club came to light.  


"We accordingly modify the interim relief by directing suspension of the GC and appointment of an Administrator to be nominated by the Union of India to manage the affairs of the Club,” said the tribunal's order. 


"We also direct that acceptance of new membership or fee or any enhancement thereof till disposal of wait list applications be kept on hold till disposal of the Company Petition,” the order added. 


Last year, the NCLT had held that the club was acting in a manner prejudicial to “public interest” and ordered a probe into the matter.  


It said that the club should have kept its door open for " many if not all” so they could avail the various services offered by the club such as the swimming pool, library and other sports facilities. 


A five-member central government-appointed panel was set up to look into the affairs of the club, including the land usage and various policies on member admissions it has had over the years. 


The MCA had alleged that the club had become a den of nepotism and gave preferential treatment in membership. It said that the club's membership was consistently denied to applicants even as the application fee they submitted was used by the club for its activities. 


The ministry had petitioned the NCLT that a 15-member body should replace the existing general committee of the club. It also sought that the new committee restructure the club so that it functions in accordance with the terms of its memorandum and articles of association.


Live TV