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In its petition before the NCLT, the Central government said that pursuant to several complaints received by it, the affairs of M/s Delhi Gymkhana Club Ltd were inspected by it under Section 206(5) of the Companies Act.
During the course of the investigation, the Central government alleged that there was rampant mismanagement by the General Committee of the Club, in violation of the Articles of Association and the Companies Act.
It was alleged that the members of the General Committee of the Club were acting for the benefit of a few chosen members, and at the expense of the general public.
Source: Barandbench