Delhi Gymkhana Club Surplus Surges Tenfold to Rs 9.5 Crore in FY24

Delhi Gymkhana Club saw its surplus surge nearly ten times to Rs 9.5 crore in 2023-24.

Restaurants, bars, and banquets drove this revenue growth. The club maintains strong financial reserves despite land lease and legal challenges. This financial success draws attention to its shift from sports to other operations. Membership queues continue to stretch for decades.

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Delhi’s elite Delhi Gymkhana Club reported a massive jump in surplus during 2023-24, with earnings rising nearly ten times to Rs 9.5 crore from Rs 93 lakh a year earlier, according to financial documents filed with the ministry of corporate affairs. The filings also showed that the club held strong reserves, investments and liquid funds even as it faced uncertainty over land lease renewal and legal disputes involving the Centre, a TOI report stated.

The documents revealed that restaurants, bars and banquet operations emerged as the club’s biggest revenue source during the year, contributing around Rs 43 crore. The figures have once again drawn attention to long-running criticism that the club has shifted focus away from sports and recreational activities.

Strong cash reserves despite legal troubles

The financial statements showed that the club’s net worth stood at nearly Rs 129 crore by March 2024. It also held investments worth Rs 162 crore, while the market value of its mutual fund investments touched Rs 217 crore.

Most of the investments were parked in low-risk debt and bond funds. The largest exposure was in Aditya Birla Sun Life Corporate Bond Fund, followed by Kotak Corporate Bond Fund, ICICI Prudential Corporate Bond Fund and ICICI Prudential Banking and PSU Debt Fund.

Apart from mutual fund holdings, the club had invested more than Rs 24 crore in fixed deposits with maturity periods exceeding one year. Its bank balance at the end of March 2024 was over Rs 2 crore.

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The auditor noted that these funds could help the club manage possible risks linked to non-renewal of its land lease by the Centre or ongoing cases involving the ministry of corporate affairs.

Govt demand and pending liabilities

The report also highlighted several liabilities on the club’s books. It held Rs 11.2 crore as security deposits collected from members and another Rs 24.5 crore as application money.

At the same time, the auditor pointed out that the Land & Development Office under the urban development ministry had demanded enhanced ground rent amounting to Rs 24.7 crore from April 2018 onwards.

The club’s accounts for 2020-21, 2021-22 and 2022-23 were reportedly filed with the registrar of companies, but members had not formally approved them, according to auditor AVA & Associates.

Gymkhana Membership queue stretches for decades

The filings also shed light on the club’s complicated membership structure, which has often triggered complaints among applicants waiting for entry.

As of March 2024, the club had 5,018 permanent members and 27 life members. It also had around 3,000 UCP (user of club premises) members and more than 5,000 green card holders.

Critics within the club have long argued that dependents of permanent members found an easier route into the system. According to the concerns raised, children of members could first enter as dependents, later become green card holders and eventually move into the UCP category.

Besides these categories, the club also had 93 eminent category members, 80 corporate members, 1,323 lady subscribers, one diplomat member and one temporary member. Overall membership strength stood at 14,547.

‘Vyayamshaala to a madhushaala’

The club has frequently remained in headlines over factional politics involving retired defence officers and civil servants, especially during internal elections. Allegations of financial irregularities and mismanagement have also surfaced repeatedly over the years.

Government agencies had accused the club of moving away from its original purpose of promoting sports and recreational activities. In one of the sharpest observations made before the National Company Law Appellate Tribunal, the Centre had accused an earlier general committee of turning the club from a “vyayamshaala to a madhushaala”.