'Financial fraud, fictitious purchases': 106 Delhi Gymkhana Club members write to Centre's panel

New Delhi, May 12

A total of 106 members of the Delhi Gymkhana Club have written to the government-appointed six-member committee, citing a large number of cases of financial fraud, misappropriation, inflated/fictitious purchases, and an overrun cost of over Rs 5 crore for a swimming pool, which has no either no clearance or sanction from the NDMC.

The letter said: "During the period from 2018-2020, there was a Bhide committee report which made scathing allegations on the Jamun Tree Banquet Hall and the new swimming pool built in 2017. The Swimming Pool alone had a cost overrun of over Rs 5 crore and till today has no sanction or clearance from NDMC."

It added that a recent inquiry, ordered by the club through RITES, a public sector company, also confirmed huge cost overruns and named several individuals responsible for decision making. The members say they had been protesting as it was their money which was misappropriated.

Citing a forensic audit by Mazar Committee, which submitted its report in 2018, the members alleged that illegal purchase of IT equipment was made from a fictitious vendor at prices nearly double the market price.

"Against an approval for purchase of Rs 2.50 lakh, the club spent Rs 4.26 lakh. At the same time inventory worth Rs 2.18 lakh, which included 4 computers and 6 mother boards was found missing. In addition, a fictitious GST number was used denying the club suitable credit of over 2 lakh," added the letter.

The members also alleged that during the lockdown period, the bar was surreptitiously opened, Rs 2 lakh worth of liquor was taken out and the enquiry was deliberately mishandled to protect the high and mighty.

"During this period, a raid was conducted by the Excise Department where serious discrepancies were found in liquor stock. A heavy fine was imposed on the club. The board can ascertain the facts and take stringent action against those responsible," said the letter.

The letter added: "Since the current board comprises of non-members with no vested interests/reason to protect the wrong doers we sincerely hope swift action would be taken to recover members money by reporting the matters to the police and also suspending the membership of the concerned individuals as per provisions of AoA for gross misconduct."

Speaking to IANS, lawyer and BJP spokesperson Nalin Kohli, who is among the members on the committee, said the inspection reports of the Ministry of Corporate Affairs were duly considered by the National Company Law Tribunal (NCLT) in its order passed on April 1.

He said the tribunal had directed government-nominated members to file a report before it, once three months or whenever required, on the issues identified in the order.

On April 1, the NCLT allowed the Centre to nominate 15 persons to be appointed as Directors on the general committee (GC) of the Delhi Gymkhana Club to manage its affairs. Few days later, the Centre appointed a six-member committee to take charge of the club.