Gymkhana Club
The Board appointed by Ministry of Corporate Affairs into Gymkhana Club have once again embarrassed the Central government. The Gymkhana members rejected the annual report and balance sheet of the current financial year. It is alleged that the club secretary had committed fraud in issuing AGM notice. Surprisingly, club chairman since April, Malay Sinha was absent in Annual general body meeting. This was the reason that Madan Lal Meena, appointed as director only in October, presided over the meeting. Questions are being raised about that too.
Last year’s AGM also not approved
Like last year, this time also the Gymkhana members did not approve Annual report and the balance sheet showing huge losses. Last year, when then Administrator Om Pathak and Secretary JP Singh presented the annual report for the year 2020-21, the members started protesting on illegal notice and huge losses. While disposing of a petition before the NCLT in this matter, the Tribunal had advised the applicant to make a representation to the MCA. After which, on the basis of the given report, the MCA ordered the new Director to investigate all matters. But this was not done. This time too when Directors presented unchanged old annual report for approval, it was strangely adjourned by saying that the quorum was not complete in the meeting.
Questions raised on this year’s report as well
In the annual report for the current financial year, the auditor raised serious Qualification about unknown terms and conditions in the context of the Davis Cup held in March. According to auditor, this has not been mentioned anywhere in club records. The club members had asked the All India Tennis Association, to pay 3.5 Crores rupees spent by the club. But the association has given back only 26.6 lakhs.
Significantly, in the name of this tournament, an amount of more than 10 crores was also raised in the name of sponsorship. The then administrator Om Pathak wrote letters to various departments asking for sponsorship money. But new directors of Gymkhana, in their reply to auditor’s objections, did not present any action plan to compensate the loss caused to the club. They instead said that there is no dispute in this matter and talks are being held with Ministry of Corporate Affairs.
Allegations of suppressing losses of crores
Club members allege attempts were being made to cover up the scam by getting balance sheet of then Administrator Pathak and Secretary JP Singh approved without investigation. Total deficit in 2 years is about 27 crores. In the Davis Cup, there was even a demand to file a case against both of them. But the current board of directors is trying to save them.
Objections on the payment to legal firm
Since the Corona period, the MCA management was being accused that more than 1 crore rupees of the club was spent in the name of legal battles. The auditor has raised questions on the amount charged by the law firm in legal disputes. The auditor objected that the law firms charged on an hourly basis and the club did not even try to set a cap or monitor the hours. Not only this, law firm charged money for internal meetings also. Members allege that one of the directors of the club is paying several times more than before, benefiting favored firms.
Rejected both AGM reports!
This was the reason that the balance sheet of the current financial year, presented in the general body meeting held today in absence of club chairman Malay Sinha, was also rejected by 280 votes against 65. Surprisingly, members were not even told why Malay Sinha did not even attend virtual meeting and in what capacity Madan Meena, the recently appointed director, presided over AGM. Attempta were made to talk to Meena but he did not pick up the phone.
Club secretary accused of financial rigging
Club members allege that while issuing the notices of the AGM, the illegally appointed secretary of the club, Rajeev Hora, violated the laws and also did rigging. The notice he sent to few of the members was prepared on 15th December 2022. But Hora had signed it on 10th December itself. Here the obvious question is that when AGM notice was typed on December 15, how was it signed 5 days prior to it? Members are asking serious questions, but getting no answers.
