Delhi’s elite Gymkhana Club is facing mounting controversy after the Central Government served it a notice to vacate 27.3 acres of land owned by the government, citing the need to strengthen and secure defence infrastructure. The club has challenged the notice before the Delhi High Court, where the matter is currently pending.
Amid the legal battle, an investigation by The Indian Express into the club’s internal documents has revealed a series of alleged irregularities, including food and beverage bills charged to deceased members’ accounts, a drone incident near the Prime Minister’s residence, crores of rupees paid in legal fees to club members appointed as lawyers, and the resignation of the club’s auditor after nine years. According to the report, club authorities have failed to provide satisfactory explanations for several of these issues.
Food and beverage bills raised on deceased members’ accounts
A draft forensic audit conducted by Baker Tilly Business Advisory Services uncovered serious concerns regarding the club’s catering operations. The report, submitted to the National Company Law Tribunal (NCLT) in November 2022, examined financial activities between FY2017-18 and FY2021-22.
During its review of catering sales data, the audit identified 31 potential instances where food and beverage bills were allegedly generated using the accounts of deceased members. The auditors suggested that these accounts may have been used by non-members to access club facilities.
The issue resurfaced in 2026 when a General Diary entry filed at Chanakyapuri Police Station on 13 July alleged that Food and Beverage Manager Rajesh Bhatnagar misused the membership card of an elderly and ill member to serve drinks to four unauthorised guests in exchange for cash payments. Notably, Bhatnagar is currently serving as the club’s acting secretary.
Club members appointed as lawyers, Rs 8.22 crore spent on litigation
The forensic audit also flagged several instances of potential conflict of interest. According to the report, the club appointed its own members as legal counsel and paid them a combined ₹1.95 crore in professional fees. These included payments of ₹77 lakh to Arun Kathpalia, ₹28.76 lakh to Gaurav Mohan Liberhan, and ₹20 lakh to Harish Salve.
The audit further identified eight cases where vendors or their relatives were themselves club members. Between FY2016-17 and FY2020-21, contracts worth ₹36 crore were awarded to such vendors without them being disclosed as related parties.
Although the government-appointed administration that took charge in April 2022 discontinued the practice of appointing members as lawyers, legal expenses continued to rise. The club’s legal fees increased from ₹1.84 crore in FY2021-22 to ₹2.09 crore in FY2022-23. Overall, the club spent ₹8.22 crore on litigation between FY2018-19 and FY2022-23.
Auditor resigns after nine years
Khanna and Annadhanam, the club’s long-serving auditors, resigned on 31 March 2024 after nine years of service. In audit reports for FY2021-22 and FY2022-23, the firm had raised several concerns, including the absence of a formal budgeting process, lack of internal audit mechanisms, discrepancies between software-generated and manual records, and restricted access to important documents.
The newly appointed auditors, AVA & Associates, repeated similar concerns in their FY2023-24 report, stating that key records, including Baker Tilly’s forensic audit report, had not been made available to them.
In December 2023, members attending the club’s last Annual General Meeting also refused to approve the accounts.
Drone incident near Prime Minister’s residence
Another serious issue linked to the club concerns a drone reportedly flown near the Prime Minister’s residence in August 2022. According to a note sent by the Ministry of Corporate Affairs on 1 October 2022, Delhi Police alleged that certain club officials and “anti-social elements” had flown a drone in a restricted area, potentially compromising the Prime Minister’s security.
Security systems near Lok Kalyan Marg reportedly detected drone activity for approximately two minutes on 13 August 2022 during a possible VVIP movement.
While the matter was later said to have been transferred to the Economic Offences Wing (EOW), a senior EOW official reportedly denied having knowledge of any such case. As a result, the final outcome of the investigation into this sensitive security breach remains unclear.
Serious questions over governance
The findings contained in the forensic audit and subsequent audit reports raise significant questions about financial management, accountability, transparency, and governance within one of Delhi’s most prestigious clubs. The revelations also underscore the importance of effective oversight mechanisms to prevent misuse of resources and ensure institutional accountability.
