NCLT orders 5-member committee to look into Gymkhana Club affairs

New Delhi: With the Central government in the middle of a management takeover of the Delhi Gymkhana Club here, the National Company Law Tribunal (NCLT) has directed the government to appoint two nominees to the governing body of the club and also ordered for the formation of a five-member committee to look into the alleged "irregularities" in the club's process of granting membership.

In a verbal judgement, the NCLT also said that the Delhi Gymkhana Club will not be allowed to make any "new policy decisions, appoint new members and/or begin new constructions", while setting September 7 as the next date of hearing in the matter, when the five-member committee is expected to submit its report.

The Ministry of Corporate Affairs had started an investigation against the club, alleging that its admission procedure was tilted towards allowing only family members of members and partiality. However, the DGC had submitted before the NCLT that the government had no business interfering with a private club like itself.

Moreover, the DGC had argued that the investigation and application to take over management of the club had come from the MCA after a senior official in the Ministry was not selected for membership. The club had said the attempt to interfere and complaints of favouritism were coming from "disgruntled" members who had lost elections to the governing body of the club.