Delhi Gymkhana Club, a prestigious not-for-profit entity, has reported a remarkable tenfold increase in its surplus to Rs 9.5 crore for the financial year 2023-24, up from Rs 93 lakh in the previous year. The club's auditor, AVA & Associates, noted that the club had a net worth of nearly Rs 129 crore and ample liquid funds to address potential risks such as the non-renewal of the land lease by the central government or legal challenges from the Ministry of Corporate Affairs.
Revenue and Investments
The primary revenue driver for the club was its restaurants, bar, and banquet services, which generated Rs 43 crore during the year. As of March 2024, the club held investments worth Rs 162 crore, with mutual funds valued at Rs 217 crore. The investment strategy remained conservative, with significant holdings in corporate bond funds, including Aditya Birla Sun Life Corporate Bond Fund (Rs 18.7 crore face value), Kotak Corporate Bond Fund (Rs 14.2 crore), ICICI Pru Corporate Bond Fund (Rs 13.5 crore), and ICICI Pru Banking and PSU Debt Fund (Rs 11 crore). Additionally, over Rs 24 crore was parked in bank fixed deposits with maturities exceeding 12 months, while the bank balance stood at over Rs 2 crore.
Liabilities and Membership Structure
On the liability side, the club had Rs 11.2 crore as security deposits from members and Rs 24.5 crore as application money. The auditor highlighted that the Land & Development Office (L&DO) under the urban development ministry had demanded an enhanced ground rent of Rs 24.7 crore, effective from April 2018.
The club's membership base comprised 5,018 permanent members, 27 life members, nearly 3,000 UCP (user of club premises) members, and over 5,000 green card holders. The latter two categories have been a source of contention among those waiting in long queues for membership, which can extend up to four decades for private individuals. The grievance stems from the practice where children of permanent members, who were below a prescribed age when their parents obtained membership, could become dependents and later acquire green cards and UCP status.
Other membership categories included 93 eminent members, 80 corporate members, 1,323 lady subscribers, one diplomat, and one temporary member, bringing the total to 14,547 as of March 2024.
Audit and Governance Issues
The auditor, AVA & Associates, pointed out that audited accounts for 2020-21 to 2022-23 could not be approved by members, although they were filed with the registrar of companies. The elite club has faced internal factionalism, particularly between defence services and civil servant members, which has surfaced during elections. Allegations of fund embezzlement and mismanagement have also plagued the club. Government agencies have accused the club of deviating from its original objective of promoting sports and pastimes. The central government had previously criticized the club's general committee in an appeal before the National Company Law Appellate Tribunal (NCLAT), describing the transformation of DGC from a 'vyayamshaala' (gymnasium) to a 'madhushaala' (tavern) and sought the appointment of a government-nominated committee.
