From ‘madhushaala’ charge to governance wars: The many fault lines behind Centre’s dramatic move on Delhi Gymkhana Club

NEW DELHI: Centre's order directing Delhi Gymkhana Club (DGC) to hand over its premises to govt is being seen as the culmination of a governance dispute that was building up over six years, ever since corporate affairs ministry conducted a probe into multiple violations and instances of mismanagement at the club.

Yet, the move has come as a surprise for club's members, especially as just a few weeks ago, Land and Development Office (L&DO) had issued a notice asking the club to pay around Rs 47 crore in dues, including Rs 36 crore arising from the revised lease rate. "There were discussions on how to address this. We never expected that govt had a different plan altogether, to get the premises vacated," said a member of the club who didn't wish to be named.

The country's most coveted club from the British-era, which boasts Delhi's who's who among its members, symbolises power, elitism and exclusivity. The club with swimming pool, 26 grass tennis courts, squash courts, dining rooms, restaurants, three bars and five party venues has followed a membership rule under which 40% each went to civil servants and defence services and remaining 20% to others.

However, the club courted controversies over several issues, including the provision of "green card", which allowed adult dependents of existing members to get preferential treatment in becoming members, making it very difficult for outsiders to get membership, with the waiting period stretching to 30-40 years even after paying hefty charges.

The elite club has also been in news for strong factionalism on part of members of defence services and civil servants, which came to the forefront in every election, embezzlement of funds and mismanagement. Govt agencies had also accused the club of drifting away from its original objective of promoting various sports and pastimes. Centre had even gone to the extent of calling out the earlier general committee of club for turning DGC from a "vyayamshaala to a madhushaala" in an appeal before National Company Law Appellate Tribunal (NCLAT) while seeking appointment of a govt-nominated committee.

A senior central govt official said the club was a necessity when it was established during British era when there were no facilities for recreation for officers and govt employees posted here. "But now there is a sea change. We have malls, theatres and other avenues for recreation. We need to put the prime land to most efficient and productive use," he added.

The club is currently managed by the govt-nominated committee appointed under directives of corporate affairs ministry and NCLT.