The Mysore Race Club has been hit by controversy with some of the stewards and committee members allegedly found guilty of various acts of omission by the enquiry committee appointed by the General Body of the Club headed by Dr G Jyothi Prakash. Facing the heat are former Chairman of the Club and current Steward K A Muddappa along with another Steward Dr C D Srinivas Murthy and ex-committee member Al Rm Nagappan.

The focus of the enquiry was the terms set out by the General Body on matters relating to HR issues, works, corporate finance, authority and responsibility of the Managing Committee when K A Muddappa and Dr D Satyanarayana were the Chairman of the Institution under the provisions of the Indian Companies Act, 1956, as amended, during the period 2012-14, as well as the propriety of certain sub-committees taking unilateral, presumptuous decisions and exercising arbitrary and authoritative powers during the said period.

The enquiry committee has made the following recommendations based on the minutes of the proceedings of the ten enquiry meetings held to inquire into the matters mandated by the general body at its AGM held on August 11, 2014. The general body meeting of the club for the 2014-15 which was postponed from the scheduled date, has now been fixed to be held on Wednesday, September 30 and the recommendations will be taken up for consideration and action.

The following are some of the recommendations among others.

1. Taking cognizance of the proceedings of the then managing committee and AGM in respect of corporate matters for the period 2005-5 and 2006-7, the enquiry committee recommends deactivation of K A Muddappa, Steward till the end of his tenure of office i. e August 2016. Concurrently he is to be disqualified from contesting elections.

a) For misrepresenting facts and misleading the members relating to promotion and wage revision vis-à-vis academic qualification, authentication of H R Office cum P S to chairman with effect from 1-4-2013 on the floor of the general body held on 12-8-2013.

b) For exercising unilateral and arbitrary powers as Chairman and Senior Steward and Chairman, Computerization and IT sub-committee during the period 2012-13 and 2013-14 for violating standard operating procedures, procurement manual, financial prudence and corporate governance; his role in procurement of betting terminals, photo finish camera, CCTV contracts, security arrangement contracts, oats, bran, stationary, veterinary medicines without following standard procurement procedures and transparency. The ex-chairman shall be subjected to further scrutiny by ordering investigation audit by Registrar of Companies, Bangalore.

2. Al Rm Nagappan, the then chairman, works sub-committee to be deactivated and disqualified from contesting MC Election on counts of abuse of powers, awarding contracts, and appointment of architects, unilateral and arbitrary selection of contractors and authorizing payment of capital expenditures using OD facilities for a minimum period of 10 years.

3. Dr C D Srinivasa Murthy, the then chairman of computerization and IT Sub-Committee (2012-13) shall be censured for taking arbitrary decisions and for not following standard operating procedure/procurement manual during 2012-14, while procuring betting terminals, printers, scanners, LED TVs, photo finish camera and CCTV surveillance cameras. He shall be disqualified from contesting any election of MRC Ltd in future and as also all committees and sub-committees.

4. The enquiry committee has recommended immediate initiation of criminal proceedings against S Krishna, Deputy Manager (Accounts), for recovery of the embezzled and defrauded moneys of MRC Ltd which has been brought on record.

5. The enquiry committee has also recommend immediate disciplinary action against V S Ravish Kumar, Manager, IT for recovery of excess dividend, cash shortages and other acts of omission as listed in the report.

Interestingly, the enquiry committee has recommended censuring of several officials of the club including its Secretary for not functioning and rendering services of the company which is a public ltd company registered under Indian Companies Act 1956 provisions and for having acted and implemented the unilateral and arbitrary decisions, directions of the office-bearers named under scrutiny during the period 2012-14 which were not in consonance with Indian Companies Act 1956. The enquiry committee has recommended a thorough investigation and audit of accounts and finance, administration and governance, policies and programmes in respect of MRC Ltd for the period 2012-15 by Registrar of Companies, Ministry of Company Affairs, Bangalore keeping in mind the cascading effects of corporate non-governance of the previous committees over the past and coming financial years. The enquiry report also recommends censure of former Chairman of the Club Dr D Satyanarayana and B U Chengappa, the then chairman of certain sub-committees during 2012-13.

The enquiry committee has also recommended for immediate amendment of Articles of Association of MRC Ltd to restrict number of terms of office of chairman, stewards, and committee members for a maximum tenure of two terms during their membership in entirety to prevent deterioration and collapse of corporate governance and to fix accountable and performance parameter of managing committee.