New Delhi, October 2024 — The National Company Law Appellate Tribunal (NCLAT) has upheld the Central government’s decision to take over the management of the prestigious Delhi Gymkhana Club. The ruling comes in the wake of governance and financial concerns surrounding the historic club, with allegations of mismanagement leading to government intervention.
In its decision, the NCLAT affirmed that the government’s takeover was in the public interest, citing issues of improper administration and non-compliance with the club’s articles of association. The Ministry of Corporate Affairs had moved to take control of the club’s functioning in 2022, appointing an administrator to replace the elected management.
The Delhi Gymkhana Club, founded in 1913 and known for its elite membership, has been at the center of a legal and administrative battle, with the former club management contesting the government’s actions as overreach. However, the tribunal maintained that the takeover was necessary to safeguard the club’s heritage and ensure transparency in its operations.
The NCLAT’s ruling marks a significant turning point in the long-running dispute, allowing the government to continue with its reforms aimed at addressing the alleged irregularities within the club. It also paves the way for new elections and the establishment of a fresh management body.
The Central government welcomed the decision, stating that its objective is to restore proper governance and preserve the institution’s legacy. On the other hand, members of the ousted management expressed disappointment and hinted at the possibility of approaching the Supreme Court for further relief.
The Delhi Gymkhana Club, long associated with the country’s political and social elite, now enters a new phase, with its future leadership and direction to be shaped by the ongoing reforms initiated by the government-appointed administration.