Rs 50-Crore Corruption To PM’s Security Breach: The Long List Of Complaints Against Delhi Gymkhana Club

Last Updated:May 25, 2026, 14:52 IST

CNN-News18 accessed the government document to the Delhi Gymkhana Club over lists of frauds, complaints and unlawful practices

From Rs 50-crore corruption, financial irregularities to illegal appointments and national security breach, the Ministry of Corporate Affairs (MCA) had pointed out several unlawful practices at the Delhi Gymkhana Club after its inspection in 2022.

CNN-News18 accessed the government document to the Delhi Gymkhana Club over lists of frauds, complaints and unlawful practices.

The Centre has ordered the club to vacate its 27.3-acre prime land parcel by June 5, citing critical national security and defence infrastructure needs, which the club might contest.

KEY NOTINGS FROM THE DOCUMENT

• Rs 50-crore corruption in DGC public deposits
• National Security breach and new August 13, 2022 FIR against Rajesh Bhatnagar and others
• Illegal, void acts of five nominated directors
• Illegal appointment of Bhatnagar’s former head Rajiv Hora as secretary
• CBI visits
• EOW FIR-103/21 notices
• Complaints of members and staff to the government against five directors
• Refusal to comply with NCLAT, NCLT and government orders.

THE IRREGULARITIES

Deposit of Rs 50 crore: The ministry noted, “The supplementary inspection report pointed out the grave financial irregularities, malfunctioning of records and operation of the club in violation of the Companies Act, 1956 and Companies Act, 2013 and the articles of the club and collection of public deposits to the tune of Rs 50 crore. The then members were suspended afterwards following a legal hearing at the NCLT."

Appointments: More flaws emerged as noted by Ministry of Consumer Affairs. Members of the Club were appointed unlawfully. The General Committee is in violation of the provisions of the Companies Act as it cannot hold a valid board meeting required by the Company to be held every month. This is a very serious issue and a big lapse on the part of the remaining members of the GC, it said.

Drone activity and subsequent FIR too: The ministry noted that it also informed with regard to the breach of National Security by the club on 13.8.2022 by flying a Drone during a rally in close proximity to the Hon’ble PM’s house which resulted in an FIR being registered by DCP, New Delhi district against a GC member and others. As the police are investigating the matter, no further action is proposed.

Expenditure: The Ministry of the Corporate Affairs also noted that the DGC has fraudulently spent over Rs 4 crore of public funds, in defending few corrupt Board members by false accusations on affidavit the Ministry of the Corporate Affairs.

PM’S SECURITY BREACH: WHAT THE COMPLAINT SAID

A letter signed by additional DCP Hemant Tiwari and addressed to the Deputy Director of the Ministry of Corporate Affairs, mentioned a complaint filed by Ashish Khanna, SM (Retd.), against Delhi Gymkhana Club Limited.

“As per the allegations, Mr A Verma, the then Secretary of Gymkhana, conspired with R. Bhatnagar F & B Manager and some anti social elements carried out the Drone activities in the prohibited area endangering the security of Hon’ble Prime Minister of India. They further took out unauthorized Tiranga Yatra flouting the Law of the directions. A. Verma was warned by the DGC Staff to not to carry out the Drone activity, but he ignored…During enquiry it has been revealed that one unauthorized Tiranga Yatra was carried out on 13.08.2022 at a place where movement of VVIPs was expected soon. Accordingly, a case FIR No. 124/22 dated 13.08.2022 u/s 186/188/34 IPC against the organizer and participating members of Tiranga Yatra. Investigation is in progress. Accordingly, action will be taken against the violators. Hence, the complaint is being filed."

The complaint is against the then secretary of the Delhi Gymkhana Club who went against the security protocols during the VVIP movement. As per the complaint, an FIR was lodged & investigation was carried out.

AFTER THE 2022 INSPECTION

The Ministry of Corporate Affairs (MCA) inspected the Delhi Gymkhana Club and found alleged financial irregularities, record mismanagement, Companies Act violations, and alleged public deposit collections of about ₹50 crore. The MCA moved the NCLT under Sections 241-242 of the Companies Act seeking suspension of the Club’s General Committee (GC).

In April 2022, NCLT suspended the old GC and directed the Central Government to appoint 15 members to run the Club. Only 6 members — M. Sinha, IPS (Retd.); K.R. Chandra, IPS (Retd.); A. Verma (IRS); A. Sawhney (IAS); Nalin Kohli; and K. Chahal — were initially appointed. Chandra later resigned, reducing the quorum below the required 6 members.

MCA officials repeatedly noted that the GC lacked legal quorum, decisions taken by it could be “void ab initio," including appointment of a new Secretary. Col. Ashish Khanna supported the Government’s case before NCLT, and alleged he was removed for doing so. He repeatedly sought reinstatement/payment of dues.

“Since, the minimum quorum as per the Articles of Association of the company, is not present, no valid meeting of the GC can be held and all actions taken by the GC are void ab initio. Col. Khanna has also informed with regard to the breach of National Security by the club on 13.8.2022 by flying a Drone during a rally in close proximity to the Hon’ble PM’s house which resulted in an FIR being registered by DCP, New Delhi district against a GC member and others. Col Khanna has also informed that in this scenario, GC appointed a new Secretary Mr. R. Hora on 22.08.2022 without following the due procedure. It is important to note that in the absence of proper GC with minimum quorum, no valid appointment of Secretary by the GC is possible," said the Ministry.

NOT ELITIST, SAYS MEMBER AND RETIRED COLONEL MANCHANDA

Retired Colonel Manchanda told New18: “The PM’s house has shifted so the security connotations have changed…It is difficult to understand. We stay across two hotels, how does that not affect security?…Also, a major security breach was reported at PM’s house last year. I have been a member for nearly half a century. This is just an excuse to have the club evicted…At the moment, the club is run by the government….We are fighting with each other. The committee appointed by the government takes decisions without communicating with the members."

“There are outstanding complaints with the Ministry of Corporate Affairs and National Company Law board and in the high courts and Supreme court. They are complaints of corruption which have not been addressed. The whistleblowers are punished. I was suspended for a year. Another lady’s membership was suspended and terminated."

“The employees have been sacked and replaced with more pliable people…There is more than security…They seem to be covering up financial misdemeanours…The club’s accounts have not been passed for past 7 years. The balance sheet has not been shown to membership. The auditors have resigned," he said.

“There is no transparency in the way the club is being handled by the government…We have written to the general committee, with 500 members signing. Not a single reply has been received…These documents are in public domain."

“It is part of our history and culture…It is not elitist. I am an Army man. I am a soldier, my job is to protect the country…Nobody can inherit…The club is divided into two – one is those interested in membership and the other in exposing corruption."

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