The CBI, which is investigating allegations of corruption in preparations for the Delhi Commonwealth Games, made its first arrests on Monday. Two top officials of the CWG organising committee (OC), who had already been sacked following allegations of corruption, were arrested on charges of forgery and cheating in connection with alleged irregularities in the Queen’s Baton Relay (QBR) in London last year.
The CBI arrested Mr T.S. Darbari, who was joint director-general (revenue marketing), and Mr Sanjay Mahendroo, deputy director-general (marketing), of the OC. Both were considered close aides of CWG OC chairman Suresh Kalmadi. The other accused booked by the CBI include Mr Raj Singh (OC director), Ashish Patel (director of the London-based AM Car & Van Hire and AM Films UK Ltd, both London-based firms), and other unknown persons. The CBI also searched the OC office and residential premises of the accused officials and recovered some “incriminating” documents.
According to sources, the agency is likely to question two more OC officials in connection with its probe into alleged financial irregularities in the QBR. The agency is also planning to interrogate the accused director of the London-based firms by issuing a summons through diplomatic channels. If he does not cooperate, the CBI may seek help from Interpol, sources added.
Talking to reporters, a high-ranking CBI official said, “The first case was registered under different sections of the IPC and Prevention of Corruption Act in relation to the award of a contract to the London-based AM Car and Van Hire Ltd at exorbitant rates. It is alleged that the accused officials of the OC, in a n Turn to Page 3
conspiracy with the transport firm and its director, awarded work to the said firm at exorbitant rates without following the standard tender process.” The second case involves London-based AM Films, Mr Patel, Mr Mahendroo, Mr Darbari and others. It is alleged that the accused OC officials, in a conspiracy with the private firm, awarded the work of installation of video screens at the venue of the QBR at exorbitant rates, said the official, adding that two emails were allegedly forged by the OC officials to justify the selection of the firms.
Sources added that the CBI has evidence of correspondence between the private firms and some of the OC members through email regarding finalising of deals. Some of these emails also contained references related to dilution of terms and conditions of certain contracts, the sources said.
It is learnt that Mr Ashish Patel is facing a seven-year ban by the UK Registrar of Companies (RoC). The UK RoC disqualified Mr Patel as a director of the London-based firms from March 17, 2010 to March 16, 2017.
Reacting to the raids conducted by the CBI, OC CEO Jarnail Singh told this newspaper, “There is no doubt that certain irregularities were committed while awarding contracts related to the QBR. These contracts were awarded prior to my joining the OC.” When contracts are awarded at the last moment, there is scope for irregularities, he said.
Sources in the CBI said the agency would soon register a preliminary enquiry (PE) in connection with its probe into financial transactions between the OC and Australian company Sports Management and Marketing (SMAM). The Australian firm and its subsidiaries had been authorised by the OC to get sponsorship for the Games. As per contract, the Australian firm was to get 23 per cent commission from the OC for each sponsorship. “In the case of SMAM, payments worth over `50 crores were allegedly made by the OC. The linkages of SMAM with the Mauritius-based World Sports Group (WSG) have already led to suspicion of money-laundering. Officials of the probe agencies, including of the Enforcement Directorate (ED), are also scrutinising contract documents signed between the OC and the foreign firm and its subsidiary companies,” sources said.
The ED is likely to issue summons to OC secretary-general Lalit Bhanot in connection with its probe into alleged violations of the Foreign Exchange Management Act in awarding of overlays contracts and the QBR. The ED has already questioned OC director-general V.K. Verma, former treasurer M. Jayachandran and T.S. Darbari in this regard.