The Delhi Gymkhana Club, long considered one of the most elite and exclusive institutions in the nation's capital, is currently at the center of a growing storm. The Central Government recently issued a formal notice demanding the club vacate 27.3 acres of prime government-owned land. The state has declared that this space is urgently needed to strengthen and secure vital national defense infrastructure. In response, the club administration has took the battle to the courtroom, challenging the eviction notice before the Delhi High Court, where the legal matter is currently pending.

Yet, the land dispute is only the surface of the institution's troubles. An extensive investigation into the club’s private internal documents has exposed a long list of internal irregularities and deep institutional flaws. The investigation revealed that food and drink bills were systematically charged to the accounts of dead members. Furthermore, a highly sensitive security breach involving a drone occurred right next to the Prime Minister’s official residence. The documents also show that crores of rupees were paid out in legal fees to lawyers who were actually members of the club itself, and the club’s long-standing independent auditor suddenly resigned after nine years on the job. When confronted with these serious findings, the club authorities failed to provide any satisfactory explanations for the operational lapses.

Food and Drink Charges Placed on the Accounts of Deceased Members

A detailed draft forensic audit conducted by Baker Tilly Business Advisory Services has exposed deep flaws and worrying vulnerabilities within the club's daily catering operations. This extensive financial review was officially submitted to the National Company Law Tribunal (NCLT) in November 2022. The investigators carefully scrutinized the establishment's financial activities over a five-year period, covering the financial years from FY 2017-18 to FY 2021-22.

While combing through the daily catering sales data, the forensic team identified 31 specific instances where food and beverage bills were systematically generated under the names and accounts of members who were already dead. The auditors pointed out that these active accounts of deceased individuals were highly likely used by non-members to gain unauthorized entry and freely enjoy the club’s private facilities.

This persistent issue came to light once again in 2026. A formal General Diary entry was filed at the Chanakyapuri Police Station on 13 July 2026. The police filing alleged that the club's Food and Beverage Manager, Rajesh Bhatnagar, personally misused the membership card belonging to an elderly and severely ill member. The report states he used this card to serve alcoholic drinks to four unauthorized guests, directly accepting cash payments from them in return. Compounding the gravity of the situation, Bhatnagar is currently serving as the acting secretary of the entire club.

Club Members Hired as Legal Counsel, Resulting in a ₹8.22 Crore Litigation Bill

The forensic audit also shone a bright light on multiple situations pointing to clear conflicts of interest regarding how the club handled its legal battles. According to the audit findings, the elite club routinely hired its very own members to act as its legal counsel. In doing so, the institution handed over a massive combined total of ₹1.95 crore in professional fees to these insider individuals. Among these transactions, the audit highlighted specific payments of ₹77 lakh to Arun Kathpalia, ₹28.76 lakh to Gaurav Mohan Liberhan, and ₹20 lakh to Harish Salve.

The financial investigation did not stop at legal fees. The auditors identified eight distinct cases where commercial vendors, or the close relatives of those vendors, held active memberships within the club. Between the financial years of FY 2016-17 and FY 2020-21, business contracts worth a staggering ₹36 crore were handed out to these specific vendors. Shockingly, these individuals were never properly disclosed as related parties in the club's official financial books.

A government-appointed administration stepped in to take complete control of the facility in April 2022, and they quickly stopped the controversial practice of hiring club members as paid lawyers. Despite this policy change, the establishment's legal spending continued to climb higher. The annual legal fees rose steadily from ₹1.84 crore in FY 2021-22 to ₹2.09 crore in FY 2022-23. When looking at the broader picture, the institution spent a total of ₹8.22 crore purely on litigation between the financial years of FY 2018-19 and FY 2022-23.

Independent Auditor Steps Down After Nine Years of Service

The club’s long-serving independent auditing firm, Khanna and Annadhanam, chose to cut ties with the institution, officially resigning on 31 March 2024 after providing nine consecutive years of service. In their final audit reports covering FY 2021-22 and FY 2022-23, the firm had repeatedly raised red flags over severe structural problems. They pointed out a complete absence of a formal, structured budgeting process, a total lack of any internal audit mechanisms, major discrepancies between digital software-generated data and manual paper records, and instances where they were given restricted access to vital financial documents.

The institutional problems continued with the arrival of the next auditing team. The newly appointed auditors, AVA & Associates, echoed these exact same points of friction in their subsequent report for FY 2023-24. They stated very clearly that critical corporate records, including the vital Baker Tilly forensic audit report, were deliberately withheld and never made available to them for review.

The general membership quickly took notice of these structural failures. In December 2023, during the club’s annual general meeting, the attending members firmly refused to pass or approve the presented financial accounts.

Security Breach Involving Drone Activity Near the Prime Minister’s Residence

Perhaps the most alarming and sensitive issue tied directly to the club involves a drone that was spotted flying dangerously close to the Prime Minister’s official residence in August 2022. According to a formal official note sent out by the Ministry of Corporate Affairs on 1 October 2022, the Delhi Police alleged that specific club officials working alongside outside “anti-social elements” had actively operated a drone inside a strictly restricted airspace. This unauthorized flight potentially put the personal security of the Prime Minister at risk.

High-tech security monitoring systems stationed near Lok Kalyan Marg detected the active drone in the sky for approximately two minutes on 13 August 2022. This security breach occurred during a sensitive time frame marked as a possible VVIP movement window.

The sensitive matter was later reported to be transferred over to the Economic Offences Wing (EOW) for a deeper criminal investigation. However, a senior official within the EOW later denied having any official knowledge of such a case existing on their books. Because of these conflicting responses, the definitive conclusion and final outcome of the investigation into this major security breach remain entirely unknown.

Major Integrity Concerns Over Club Management

The dark findings detailed inside the Baker Tilly forensic audit, combined with the subsequent warnings from multiple independent accounting firms, raise serious questions regarding financial management, personal accountability, structural transparency, and overall governance within one of Delhi’s oldest and most prestigious private spaces. These ongoing revelations highlight exactly why strong, independent oversight mechanisms are absolutely necessary to stop the flagrant misuse of private resources and to guarantee institutional accountability.