Why govts should stay away from taking over pvt clubs

THE cure is worse than the disease. This saying came to mind when reading about the government’s imminent threat to take over the running of what is arguably the best-known private club in India: the Delhi Gymkhana Club, popularly called Delhi Gym. Membership to the club is also greatly coveted, the waiting period extending to an unimaginable 30 or 40 years. Apparently, some disgruntled people, who were unable to get membership, are behind the move against the club. Hence, the Ministry of Corporate Affairs has filed a petition with the National Company Law Tribunal (NCLT) that the ministry take over the club. Unbelievable! The NCLT has set the next date of hearing as May 13, giving time for the club to file a reply. The petition cites “nepotism and financial irregularities” among its allegations against the club. That could be said about quite a few government-run organisations!

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I was lucky enough to become a member of the Delhi Gym when I was just out of college and it was fairly easy then — the 1960s — to become one, especially if your father was a permanent member, as mine was. I think I had to pay an entrance fee of just Rs200. Earlier, as a “dependent” member, I learnt to swim and play tennis there and also spent many hours in its well-stocked library. The club was located in the heart of New Delhi. Indira Gandhi was assassinated in her garden just across the road and Mahatma Gandhi was felled by Nathuram Godse’s bullets not so far away at Birla House, on what is now 30 January Marg. Lutyens’ bungalows, housing senior government officials, sprawl nearby. The residence of the Prime Minister now adjoins the Delhi Gym, only a high wall, topped with barbed wire, separating the two. The pride of the club are its superb lawn tennis courts, probably the best-maintained in the world, with the exception of the Wimbledon courts. The country’s top players, like Ramanathan Krishnan and Vijay Amritraj, have played on them. A welcome addition is a well-organised annual literary festival, which attracts a large audience from outside the club as well, and regular book discussions.

But change has been on its way in the last three or four decades. From being mainly a “sporting” club, the Delhi Gym has gradually evolved into one where social activities have become more prominent. Revenue-generating bars and a variety of restaurants have come up, where you can get top-class food and drinks far cheaper than at five-star hotels. Members find the club an ideal and cost-effective place to entertain their guests. Indeed, that has been the direction which virtually all clubs in India have been taking. Less sport, more socialising. Youngsters nowadays also prefer to spend less time on the playing field than on their computers, and meeting their friends over a drink or a meal.

A bit of history is called for. Actually, the Delhi Gym was set up by the British a little over a century ago, principally for civil servants and the armed services. Businessmen, barring a few notable exceptions, were kept away or black-balled. The president of the club and the managing committee were usually retired or serving officials at the secretary level, or a General, Admiral, and Air Marshal. By and large, the club ran smoothly because senior civil servants and high-level military officers were then both respected and people of unimpeachable integrity. Then, three or four decades ago, the standards of honesty and probity started to decline in the civil services, and the armed forces. This was inevitably reflected in the Delhi Gym and its running. Initial estimates of major upgrades, involving heavy capital expenditure, were mysteriously inflated by the time the project was complete. “Out-of-turn” memberships were given, for an under-the-table consideration. Accounts were not diligently audited.

A clear sign of the rot that had begun to set in was the shameless campaigning that took place during elections for the president and managing committee. Lavish parties at five-star hotels would be thrown by rich friends and “supporters”. A glaring instance of this was when, a few years ago, a serving secretary of a ministry known for its corruption stood as president. No expense was spared. Needless to say, the secretary got elected, by a big majority. Here, it is pertinent to point out that two of Mumbai’s leading clubs, the Willingdon and the Bombay Gym, have strict rules against campaigning. All they do is to simply ask candidates to post their biodatas on the club notice board. Members can then question them at meetings open to all members, and then decide their suitability. No wonder these two clubs are excellently-run, with few allegations of financial irregularities. No petitions there for the government to take over!

The Delhi Gym should do the same, and a good start would be a complete and strictly enforced ban on campaigning. Also, any major decision or policy change should be made at an EGM (extraordinary general meeting), not taken ad hoc, as seems to have happened. And, of course, accounts should be properly audited to prevent unwarranted escalation of costs.

A government takeover of the club is an absolute no-no. Some government official running a private club, even if temporarily, whose members are mainly retired or serving civil servants, or military officers, is a ridiculous solution. It can only make matters worse, not better, as anybody who has had dealings with the government knows. Internal cleansing is the answer, not just for the Delhi Gym but, if necessary, other private clubs as well. So, please stay away! Go and mess up some other organisation.

— The writer is a veteran journalist