The Ministry of Corporate Affairs has moved the National Company Law Tribunal seeking civil and criminal immunity for all six directors, appointed by it in April to manage the affairs of the Delhi Gymkhana Club (DGC).
In its petition before the tribunal, the ministry prayed that the six directors should not be subjected to any civil or criminal action while they are discharging their duty. The petition was filed on July 20. The ministry said, "The newly appointed directors are under the threat of being exposed to past liabilities incurred by the Respondent No. I Company (DGC) owing to actions taken/ not taken by the erstwhile management."
The six members committee was tasked with setting the exclusive in order following allegations of financial irregularities as well as violation of membership rules.
The tribunal “may be pleased to declare that the newly appointed directors should not, in discharge of their collective or individual responsibilities, be made subject to any civil and/or criminal and/or punitive action, direct or vicarious or of any nature whatsoever, by the state or Central government agencies”, the petition states.
The ministry added that the directors may become subject to disability or disqualification under law, including but not limited to Sections 164 and 167 of the Companies Act. “Moreover, various procedures under the Companies Act, 2013 or rules made there under may be required to be complied with which would invariably delay and defeat the swift action that is required to be taken by the said directors,” added the application.
The ministry urged the tribunal to declare that the newly appointed directors “should not in discharge of their collective or individual responsibilities, be made subject to any civil and/criminal and /or punitive action, direct or vicarious or of any nature whatsoever, by the state or Central government agencies whether in exercise of their statutory, quasi-judicial, or regulatory powers or otherwise without the prior leave of this tribunal or Central government.” The corporate affairs ministry first appointed M.M. Juneja, an officer on special duty at the ministry, as an administrator of the club in early 2021. Soon, Juneja was replaced by V.K. Yadav from the railways, who in turn gave way to Om Pathak in May 2021.
Last year in December, the club members alleged Pathak was changing the distinctive character of the over hundred-year-old club, and also stone-walled the objections to the policy changes made by him . On April 3 this year, Pathak was replaced by six directors.Six directors are: lawyer and BJP spokesperson Nalin Kohli, former secretary government of India Malay Kumar Sinha, BJP member Kuljeet Singh Chahal, former secretary of the ministry of electronics and information technology Ajay Sawhney, former director general of the Sashastra Seema Bal (SSB) Kumar Rajesh Chandra, and former Indian Revenue Officer Ashish Verma.
In June, Delhi Gymkhana Club's erstwhile management members have challenged the NCLT order allowing the central government to take over the control of the prestigious club.
