Government Takeover of Delhi Gymkhana Club Affirmed by NCLAT

The National Company Law Appellate Tribunal (NCLAT) has upheld a directive allowing the Indian government to assume control over the Delhi Gymkhana Club due to alleged mismanagement. This comes after the initial ruling by the National Company Law Tribunal (NCLT) concerning violations of Company Law and deviations from the club's objectives.

The National Company Law Appellate Tribunal (NCLAT) has cemented the central government's takeover of the renowned Delhi Gymkhana Club. The tribunal dismissed the appeal by former management members, endorsing the April 1, 2024, National Company Law Tribunal (NCLT) order granting the Ministry of Corporate Affairs control.

Citing mismanagement and deviation from lawful objectives, the NCLT had authorized the government to appoint a 15-member director committee to oversee the club's operations. This ruling, detailing Company Law violations, was validated on Monday by an NCLAT bench.

The panel instructed the interim management to implement all necessary remedial actions by March 31, 2025, with elections scheduled three months thereafter. Advocate Raunak Dhillon, representing the government, emphasized the intervention was crucial for rectifying managerial lapses.

(With inputs from agencies.)