New Delhi: The National Sports Club of India (NSCI) is currently at the center of a major financial scandal, with allegations of large-scale misappropriation of funds.
Pankaj Khandelwal, the current president of NSCI, has formally approached the Economic Offences Wing (EOW) of the Delhi Police, accusing the clubโs office bearers of financial irregularities.
Additionally, Khandelwal has sent a letter to Sanjay Berry, the Honorary Secretary General, and all esteemed members of the club, outlining an emergency-like situation within the organization.
This letter has been accessed by The New Indian.
In his letter, Khandelwal has raised serious concerns about the governance of the club, stating that the day-to-day management has been severely compromised.
He wrote, โThe present communication and issuance have been initiated due to the fact that a major financial irregularity has come to the notice of this office, by way of the disclosed Balance Sheet and Audit conducted of the club. Furthermore, we are in receipt of notices of contempt of court, initiated from actions that were unauthorized. Severe insubordination has been witnessed from the elected officials of this club and the employees of the club, which seems to be a protective action in favor of the perpetrators of the alleged contempt and financial irregularities.โ
Financial Irregularities and Mismanagement
The letter reveals that official notices were torn down from the clubโs notice board, and employees were misled, further disrupting operations.
Khandelwal also detailed the clubโs dire financial situation, citing an audited balance sheet for FY 2023-24 that shows the Bombay region of the club has suffered a loss of โน28 crores and has accumulated a cumulative loss of โน463 crores.
The auditorโs report flagged several concerning financial anomalies. Khandelwal noted, โUnder point VI, the auditors remark that the club has trade payable liabilities amounting to โน50.53 crores in the Bombay Region.
Additionally, at point XII, a sum of โน13.49 crores is shown to be due from members, but the club has no details of these members.
It has also been brought to light that the income and expenses related to the consumer store have not been recorded properly.
An overdraft of โน30.82 crores has been taken from banks, seemingly without proper authorization.โ
Despite having a membership base of 30,000 affluent individuals, each contributing substantial annual fees for decades, NSCI is now reportedly suffering severe financial losses.
The club, which owns approximately 50 acres of prime real estate in Mumbai and New Delhi, has significant revenue from leasing properties.
However, Khandelwal alleges that โน550 crores from the Capital Fund have been siphoned off through fraudulent expenses reported by committee members.
Additionally, the club is facing an overdraft exceeding โน30 crores and unpaid taxes amounting to nearly โน100 crores. Shockingly, despite assets valued at thousands of crores, only โน143 crores remain in the fund.
The letter also raises concerns over unaccounted liquor stock worth crores and a series of fabricated expenses.
Allegations Against Key Officials
In his complaint to the Delhi Police, Khandelwal stated, โThe Annual Financial Statement for FY 2023-24, which includes the Income & Expenditure Account, Balance Sheet, and Auditorโs Report, exposes a disturbing tale of deceit and financial manipulation.
This has led to massive losses and the erosion of the Capital Fund, which was contributed by the clubโs members. The Executive and Regional Committees of NSCI have engaged in organized crime, misappropriating funds to the tune of hundreds of crores.โ
With nearly 30,000 members and over a lakh dependents, NSCI is now grappling with a crisis of trust and financial instability.
As the scandal unfolds, further investigations by the Delhi Police and financial authorities are expected to shed more light on the extent of the alleged financial mismanagement within the prestigious club.
