The National Sports Club of India (NSCI), the country’s first club established over 70 years ago by Prime Minister Jawaharlal Nehru for the 1951 Asian Games, later transforming into a leisure and recreation hub for the elite, is now embroiled in a massive financial irregularities scandal. Current NSCI President Pankaj Khandelwal has written to the Economic Offence Wing of the Delhi Police, alleging significant misappropriation of funds by the club’s current office bearers.
NSCI, once frequented by royals like the Maharaja of Patiala, Vizianagaram, and Navanagar, the Nawab of Pataudi, General K. M. Cariappa, G. D. Birla, Naval Tata, President Dr. Rajendra Prasad, Prime Minister Nehru, and former Maharashtra Chief Minister YB Chavan, is now reeling under heavy financial losses, amounting to hundreds of crores despite having 30,000 affluent members who have paid several lakhs annually for decades. NSCI owns nearly 50 acres of prime property in Mumbai and New Delhi, frequently leased out, earning the club hundreds of crores each year.
In a letter dated 15th February, which has been obtained by the BW correspondent, Khandelwal claims that more than Rs 550 crores from the Capital Fund were siphoned off through fraudulent expenses reported by the committee members. Additionally, there is an overdraft of more than Rs 30 crores and unpaid taxes nearing Rs 100 crores, Khandelwal stated. Despite the club’s assets potentially amounting to thousands of crores, only Rs 143 crores remain in the fund. Khandelwal further pointed out that there are no records for liquor stock worth several crores, and a list of bogus expenses is extensive.
“The Annual Financial Statement, which includes the Income & Expenditure Account, Balance Sheet, and Auditor’s Report for FY 2023-24, reveals a shocking story of deceit and financial manipulation, leading to huge losses and erosion of the Capital Fund, contributed by the club’s members. Organized crime has been committed by NSCI’s Executive and Regional Committees, with members misappropriating funds to the tune of hundreds of crores,” Khandelwal told the Delhi Police.
Khandelwal has named prominent personalities, including NSCI General Secretary Atul Maru, former President Viren Shah, Vice Chairman Dilip Burad, Chairman Amit Menda, Treasurer Sandeep Mehta, Joint Secretary Abhiraj Barfiwala, Ashok Barmecha, and Ajay Bansal, as the key accused. According to Khandelwal, Viren Shah suppressed a KPMG audit report from the club members. NSCI has nearly 30,000 members and serves over a lakh people who are dependents of the club’s members.
Misuse of Funds:
NSCI’s sprawling 30-acre sea-facing property in Mumbai’s posh Worli area is today worth billions. The property houses a fully air-conditioned dome stadium with a seating capacity of 5,000, a basement with space for over 1,000 cars, three banquet halls (including a palace hall with a capacity for 3,000-4,000 people), a theater, departmental store, and more. Despite renting out this massive space in the heart of Mumbai, the club is incurring losses, according to Khandelwal.
NSCI recorded a decline in its Capital Fund from Rs 696 crores to Rs 310 crores and suffered a loss of Rs 27 crores in the Bombay Region for FY 2023-24.
Khandelwal referenced an audit report showing that the club suffered losses of Rs 9.69 crores in the catering department, Rs 9.64 crores in the SVP indoor stadium, Rs 3.19 crores in the new bar, Rs 1.74 crores in the health club, Rs 1.5 crores in the swimming pool, Rs 74.35 lakhs in the cards room, Rs 78.16 lakhs in the tennis court, Rs 2.92 crores in the old sports complex, Rs 62.34 lakhs in the badminton court, Rs 1.63 crores in the old chambers, Rs 5.88 crores in the new chambers, Rs 13.35 lakhs in the consumer store, Rs 28.18 lakhs in the bar department, Rs 73.49 lakhs in the billiards department, Rs 54.30 lakhs in the auditorium, Rs 21.25 lakhs in the table tennis department, Rs 1.02 lakhs in the squash court, and Rs 20.73 lakhs in the Viceroy Restaurant.
“The Auditors’ Report on the financial statement for the Bombay region of the club shows a damning indictment of the management,” said Khandelwal.
Outstanding Liabilities:
The club’s liabilities have ballooned to over Rs 73 crores, including a Rs 30 crore bank loan. However, its Fixed Deposits now total only Rs 92 crores, with details of these deposits remaining undisclosed in the financial reports, Khandelwal added.
Unaccounted Liabilities:
An estimated Rs 62 crores in municipal taxes have not been accounted for, raising concerns about financial transparency.
Unpaid Taxes:
The club has unpaid income tax liabilities of Rs 91 crores (as of June 2022) and Rs 75,444 crores (as of September 2021).
Provident Fund Violations:
The club has failed to deposit employees’ provident fund (PF) contributions despite having deducted it from the member contributions.
Service Tax Non-Payment:
The club has an outstanding service tax demand of Rs 2.37 crores for the period from October 2014 to June 2017, with no appeal filed. GST payments are pending.
According to Khandelwal, the Annual Financial Report, which reflects the club’s financial health, is usually sent to members before the Annual Election of the Club. However, this year, the Annual Financial Statement for FY 2023-24, although ready by 4th December 2024, was deliberately withheld until after the elections.
A forensic audit was conducted by the club in 2018 when Viren Shah was the Treasurer to address member protests regarding irregularities committed by the office bearers. However, despite the club spending a significant amount on professional fees for the audit, no action was taken against those found guilty. The KPMG report named the then-office bearers, including Atul Maru, for gross financial irregularities. However, no action has been initiated against him to date. On the contrary, Maru has continued in his role as Regional Secretary in FY 2023-24, Khandelwal said.
Khandelwal also expressed fears for his safety, stating that he has been receiving persistent threats from office bearer Ajay Bansal. Khandelwal has attached the KPMG forensic audit report and other financial statements of the club, which reveal the ongoing financial scandal. Businessworld