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CWG Scam: ED Registers Case Against OC Officials

New Delhi: The multi-pronged probe into the 2010 Commonwealth Games scam gathered steam on Tuesday with the ED registering a case for alleged Foreign Exchange violation, Income Tax sleuths conducting searches in at least 30
PTI October 19, 2010 22:35 IST
PTI

New Delhi: The multi-pronged probe into the 2010 Commonwealth Games scam gathered steam on Tuesday with the ED registering a case for alleged Foreign Exchange violation, Income Tax sleuths conducting searches in at least 30 premises in National Capital RegionĀ  and CBI looking into separate complaints of corruption.

In the first case to be filed in the scam, the Enforcement Directorate is proceeding against a few officials of the Games' Organising Committee(OC) for alleged violation of the Foreign Exchange Management Act(FEMA) as part of its probe into alleged corruption in the Commonwealth Games. The identity of the officials were immediately not known.

The Income Tax department conducted searches in nearly 30 premises in the National capital region, including the residence of a political leader, and some consortiums in and around Delhi in connection with alleged financial irregularities in works related to the just concluded Games.

More than 200 officials of the I-T department swooped down on about 30 premises, including in Chandigarh and Ludhiana, of four business consortiums, with a foreign entity in each, to probe contracts worth more than Rs 700 crore which were awarded to execute overlays and other works for the sporting extravaganza.

I-T department sources said the first consortium has bagged contracts worth about Rs 230 crore.

Sources in the department said the I-T probe will specifically look into the contracts awarded by the Games OC and the role of its officials and contractors including charges of bribing.

Official sources said Central Bureau of Investigation CBI) has also received 20 complaints regarding the Games which also include overlay works. A CBI team had even visited the OC office here on Monday.

"CBI is working in close coordination with the ED in connection with the case registered by the directorate under FEMA," sources said.

He said the complaints received by the CBI also include those pertaining to CPWD works, which are being looked into.

"CBI is awaiting for reports from CVC, CAG and the I-T department. CAG has its own central technical examiners and will do a financial audit. If something crops up, CBI will move in," the sources said.

Besides the special committee instituted by the Prime Minister Manmohan Singh to probe the alleged corruption, the Comptroller and Auditor General, Central Vigilance Commission, Income Tax Department, Enforcement Directorate and the CBI are also probing OC officials.

In another development, the Central Vigilance Commission (CVC) has found discrepancies in tenders and alleged misappropriation amounting to about Rs 8,000 crore. PTI