Commonwealth Games

2010: A Time for Answers

Sample Article
November 2010
Commonwealth Games 2010: A Time for Answers

In a world plagued by a number of uninvited scenarios ranging from global financial

crisis and sovereign bankruptcies to shady business deals and political profiteering,
India has registered its entry through the Commonwealth Games 2010. Now, that the
games are over and the results pouring in, the regulators and investigation have
started their probe into what can turn out to be one of India’s largest financial scams
so far. The original budget for the Games was set at Rs. 3,800 crore. However, on
the basis of the Joint Parliamentary Committee’s (JPC) findings, the opposition
has alleged that the actual expenditure in hosting the games was to the tune of
Rs. 70,000 crore! The Government has declared an expenditure of Rs. 30,000 crore,
squarely blaming the escalation on ‘rising’ prices. This is especially interesting in the
light of the fact that Beijing concluded the entire Olympic Games within Rs. 28,000
crore, two years ago.

According to some unconfirmed estimates, all bills were spuriously inflated by almost
30% and contracts given to undeclared (benami) affiliates. Several other benami deals
were struck through the Mauritius route, benefitting Kalmadi’s aides. The JPC has also
questioned the expenditure of Rs. 961 crore on renovating the Jawahar Lal Nehru
Stadium, where Rs. 100 crore is the highest estimate that is required for such
purposes. Kalmadi’s expensive deal with AM Films, London, for providing services
during the Queen’s baton relay is also under fire. The Company, AM Films, has a
questionable record and was issued a liquidation notice (later withdrawn) in July
2010. Surprisingly enough, the GBP 250,000 deal had no records – not even a written
contract under which the money was paid to them. The matter first came into light
when the British Authorities contacted the Indian High Commission, confirming that
the entire deal has gone unaccounted.

Since, the issuance of the latest findings by CAG (Comptroller and Auditor General) in
October, several Government agencies have sprung into action. The apex anti-
corruption body has already stalled Delhi Government’s efforts to prevent the
inspection of some 51 infrastructure related deals. The total number of projects
stands at 76, of which 51 are ‘unrelated’ to CWG, as claimed by the Government.
Consequently, nearly all the key Delhi Government Departments are under scanner.
Initiating action on its own account, the Income Tax Department launched raids on 50
locations in a single day, followed by several other raids conducted nationwide. The
Department was chiefly gathering evidence of discrepancies in awarding the
contracts. In addition, the matter of incomplete disclosure of information, in the
matter of Queen’s baton relay in London, under the Right to Information Act by
Organizing Committee has already been dragged into investigation by the Central
Information Commission.

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Commonwealth Games 2010: A Time for Answers

Three key CWG officials and Kalmadi’s close aides were suspended immediately after
the conclusion of the Games and the Enforcement Directorate has opened a case
under FEMA. Having obtained sufficient documentary evidence during its
investigation, the CBI, on November 23, categorically stated that Suresh Kalmadi is
expected to be arrested on corruption charges in the Queen’s baton relay scandal.
Meanwhile, Janta Party Leader, Subramaniam Swami has added to the woes of the
PMO by asking the Premier to account for the “…… leakage of funds, gross bribery and
kickbacks to the tune of 25 per cent of the total budget of nearly Rs. 100,000 crore.”
Declaring his intent to move to the apex court, Swamy has warned the PM of a 2G
Spectrum-scam like situation. Amidst the flurry of activities in the alleged CWG scam,
it remains to be seen if the real perpetrators are brought to justice and whether, the
case reaches its conclusion in the wake of more pressing concerns, like the 2G
Spectrum-scandal!

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