New Delhi: The “silent majority” of Delhi Gymkhana Club members, who are being termed as “disgruntled”, wants the club to be compliant with the laws of the land. Hence, they are supporting the recent move by the Ministry of Corporate Affairs (MCA) to take over the functioning of the club. This is what several Gymkhana members claim. This feeling was evident earlier this week from the small team of club members who went to meet Minister of State for Corporate Affairs, Anurag Thakur seeking his intervention to stop the MCA’s moves at the National Company Law Tribunal (NCLT), where the case is in the final stage of being decided. A senior club member, who is a bureaucrat with a very distinguished career record, told The Sunday Guardian: “Most club members stayed away from the team, which comprised ‘influential members’ who went to meet the young minister. We did not go because we were not sure what we should tell him—that we want to stop the MCA from looking into the wrongdoings happening at the Gymkhana?”
Thakur, according to official sources, refused to intervene in this high-profile matter and told the members that “nothing was in his hands and things will move as per the law, as they have so far”.
With the names of high-profile politicians, including BJP leaders, coming up in this legal tussle—which is being attributed to media leaks allegedly done by Gymkhana Club officials—the whole matter is now being closely followed by the very top office of the government, a senior member of the club, who retired from the post of Secretary to the Government of India, told The Sunday Guardian.
On the other hand, those members who are opposing the government’s intervention in the functioning of the club, are ready to fight for their “rights” till the Supreme Court and have already, according to members, created a corpus of Rs 1.5 crore for the purpose. The club, in its earlier response to The Sunday Guardian through its lawyer had strongly refuted any incidents of wrongdoing in the working of the club. “The issue sought to be raised by Ministry of Corporate Affairs in its petition before the NCLT is not of public interest as canvassed,” the response stated.
Speaking to The Sunday Guardian, club members, who are in favour of the intervention by the government, gave multiple examples of the alleged “misconduct” that in their view was taking place in the club. This claim has been strongly refuted by the other side. “A majority of the club members are fed up of certain practices that are happening there. We have been raising these issues since the last 4-5 years. Hence not many agreed to go and meet the MCA minister. When someone says that the MCA’s move to look into the books of the club is inspired by the act of the club of not giving membership to a senior MCA official or because Prime Minister Narendra Modi wants to take over the club to add to the central vista plan, all these are factually inaccurate statements. Would you believe that a retired officer of the MCA has so much power that he could authorise a full-fledged inquiry into the working of the club just because he was not given a membership? And that is why the majority of the members are in favour of the intervention by the MCA so that the system becomes transparent and parivarvaad (nepotism) is disinfected from the club’s premises,” a senior club member, requesting anonymity to avoid “vindictive” attention by those who are in the position to, told The Sunday Guardian.
Another former member of the Governing Committee (GC) of the club, who has kept himself away from the present controversy, said that “parivarvaad” or “dynastic” entitlement is a problem, which has been plaguing the club for long.
“Many members who spoke against this have been banished. It is no surprise that the families that control the club are resenting the government inquiry as it will unravel their control and put at risk the privileges of hundreds of dependents and their children who were admitted to the club, wrongly,” the former member, who comes from the defence establishment, told The Sunday Guardian.
“The Club has used all its sympathizers to put out favorable stories on the heritage of the club, externalizing the problems and blaming the Government’s ‘high handed’ manner and its meddling in what is seen as a ‘family matter’. Prominent Lutyen’s residents have publicly bemoaned this ‘attack’. Writers have been attacking the government and accusing it of ulterior motives ignoring the sad reality. This is actually a blessing in disguise—an act that may actually save the Club they are so fond of for its history, heritage and cuisine,” reads a letter shared by a club member with The Sunday Guardian which he wrote on the present issues that are happening in the club.
However, those who are against the government’s interference into the functioning of the club, believe that the “disgruntled’ members of the club are spreading canards to suit their agenda and that everything was being done in the club as per the rules of the land.
According to the senior club member quoted above, “important officials” of the club would have acted more responsibly had they realised the value of the gift they were sitting on.
“They have forgotten that they are sitting on one of the costliest pieces of real estate in India, leased to the club on a nominal payment of around Rs 1,000 per annum. They are not serving any larger public purpose which can allow any democratic government to subsidize their existence. What is the public service that this ‘members-only’ club is doing to get this property worth around Rs 5,000 crore (as per estimates) for Rs 85 per month? The Ministry of Urban Affairs, which is also a party to the petition, if it manages to shows some courage and stand against those who are supporting the club, can change the holding pattern of the club from a perpetual lease to free hold and use the money that it gets in return for public good. In fact, the President of India is the club’s patron. Will the current President lend his name to such a club?” asked the member from the defence sector.
Those who support an MCA-mandated administration of the club have also raised their objections to a “cash-card” system which the club allegedly gives to non-members whom it wants to oblige for future use. This “cash card” allows them access to all facilities of the club despite not being a member.
“All these ‘privileges’ have been introduced illegally and cannot be allowed to go on,” said a member from the IAS community, adding that he cannot air his views publicly as he would be dubbed as a “traitor’ for committing the treason of speaking against the club in the tightly controlled WhatsApp groups run by some officials of the club.
According to him, the misgovernance issues in the club were present long before the present BJP government came to power, but it was after Modi came to power that they decided to move the MCA as they believe that the “club of the super influentials” will not be able to “manage” the inquiry undertaken by the MCA with PM Modi at the helm.
“Despite being aware of the decades-long waiting period, the club continued to lure fresh innocent applicants who were asked to shell out hefty sums of money just to enjoy the privilege of standing in a never moving queue. To add insult to injury, each time the club was short of funds, this hapless group was tapped into for more funds just to keep their place in the wait list. The options were stark—pay up or lose the wait list position,” reads the letter mentioned earlier.
FIRST TIME TO MCA
It was in 2017-2018 that for the first time some senior members of the club, having failed to obtain any reply from the club authorities, that they went to the MCA and SFIO (Serious Fraud Investigation Office), highlighting the issues of the club while demanding an inquiry.
Later, the MCA inquiry found that while 50% of the 5,600-strong membership was to be kept reserved for the higher civil service and defence forces, the actual user base has swollen to over 15,000, with a majority consisting of offspring of members and their progeny. To accommodate the growing number of such dependents, 50% of slots meant for new civilian applicants was then arbitrarily carved out and reserved for the “family”, resulting in a waiting period of over 35 years for any new applicant, and effectively denying them and their children any hope of ever availing of the club facilities in any meaningful manner.
The same year a majority of the GC, consisting of former government and defence officers, “revolted” against the president of the club. “The report on three inquiry reports (including one by Deloitte), despite lakhs of club rupees being spent on them, was junked as its findings were not favourable. Later, nine (out of a total of 16+1) GC members held an emergency meeting to distance themselves from patently wrong decisions, including passing of the annual accounts without adequate majority. The dissents were never recorded or acknowledged. However ‘the traitors’ were to be punished swiftly and severely. Several senior officials, including two former Secretaries to Government of India, were issued notice for suspension and eventual termination of membership. This started yet another expensive legal battle in which the club had to use the members’ money to defend the untenable decisions of the GC and President,” the former IAS officer recalled.
“Lt. General D.R. Soni, an upright officer who took over as the new president in September 2019, had to change the composition of the key sub-committees—membership, discipline and finance—three times in his first ten days to accommodate the nominees of vested interest groups in key areas of responsibility. He is aware of the violation of financial norms which are being done by giving club contracts to members or their relatives, but he is powerless. President Soni is trying to fight a legal battle with his hands tied behind him, and is destined to fail in any reforms. The club needs an administrator who has the stature and standing to bring in serious reforms,” the defence officer quoted earlier said.