Hyderabad: An allegation of financial fraud levelled by some members led to a raid by the commercial tax department on the Fateh Maidan Club on Thursday.
According to the allegations, the club’s bill books at the bar were recording smaller amounts than what the members paid.
In one instance, in a bill dated January 3, 2016, a customer was charged '1,324 while the bill showed '251. In a bill on December 29, 2015, the customer was charged '9,595 but in bill it recorded '1,755.
Mr Panduranga Reddy, a retired Indian Air Force officer and club member, alleged that financial discrepancy might have been going on since 2008, when elections were last held to the executive committee.
The club is being run by a self-styled caretaker committee headed by Mr J. Prithviraj Reddy whose term ended in March 2008, he said.
There was no legal basis for the committee to continue. According to Mr Panduranga Reddy, Article 61 of the club’s byelaws says if there is no executive committee, the Sports Authority of Telangana State should take over the reins.
FMC members alleged that the club was not paying salaries regularly to employees. According to another allegation, the committee had allowed 800 long-term temporary members and the fee was received in cash and not properly accounted for.
When contacted, Mr Prithviraj Reddy said the elections were on hold because of a court case. “A three member committee has sought clarifications and the next hearing is on January 22,” he said.
He said action would be taken on those responsible for the billing errors. “If any allegation is proven against me, I am ready to resign my club membership,” he said.
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