The Centre's decision to order the Delhi Gymkhana Club to vacate its prime Safdarjung Road premises was preceded by repeated criticism of the elite institution's functioning. The government accused the club of straying from its original purpose as a sporting and recreational venue.
Government's Allegations Before NCLAT
During hearings at the National Company Law Appellate Tribunal (NCLAT), the government remarked that the club had transformed from a 'vyayamshaala' to a 'madhushaala', implying a shift from physical activity to liquor, dining, and social gatherings. In a 2020 appeal, the Ministry of Corporate Affairs (MCA) alleged that the club's general committee treated the institution as its 'riyaasat' and ran its affairs in a manner 'prejudicial to public interest'.
Challenge to NCLT Order
The Centre challenged a National Company Law Tribunal (NCLT) order that allowed two government nominees to join the club's management instead of appointing a full administrator. Labeling the relief as 'cosmetic and ineffective', the MCA sought suspension of the general committee and reiterated the demand for an administrator.
Wider Investigation into Club Affairs
This criticism was part of a broader MCA probe into alleged financial irregularities, governance failures, factionalism, and membership controversies. Government agencies argued that the club, originally allotted public land for sports and recreation, had become an exclusive social hub dominated by restaurants, bars, and banquet activities.
Membership Controversies
The club faced controversies over its 'green card' policy, which gave preferential membership to adult dependents of existing members, making it extremely difficult for outsiders to join. The waiting period extended to 30-40 years even after paying hefty charges.
NCLT Observations
The NCLT observed that the club's affairs were prima facie conducted in a manner prejudicial to public interest. It directed the formation of a five-member committee to examine issues related to land use, governance, and membership practices.
Fresh Attention After Eviction Order
These remarks gained renewed attention after the Union government moved to reclaim the club's 27.3-acre property, citing national security and public purpose linked to the high-security zone around the Prime Minister's residence in Lutyens' Delhi.
Legal Challenge by Club Members
Delhi Gymkhana Club members have approached the Delhi High Court challenging the eviction order, with the matter scheduled for hearing on Tuesday.
