Government Maintains Control: NCLAT Upholds Delhi Gymkhana Club Management Takeover
The NCLAT has upheld the central government's decision to take over Delhi Gymkhana Club's management, requiring the committee to finalize corrective measures and conduct elections. The move followed allegations of management being prejudicial to public interest, permitting government intervention.
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The Appellate Tribunal, NCLAT, has endorsed the central government's takeover of the Delhi Gymkhana Club, mandating the current committee complete necessary remedial actions and proceed with elections.
The NCLAT dismissed the petition from former management against the NCLT's order, affirming the government's right to intervene due to mismanaged club operations.
The NCLT found grounds for the Ministry of Corporate Affairs' plea, citing violations of Company Law, thereby authorizing government nomination of new directors to oversee club affairs.
(With inputs from agencies.)
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