This article is written by Shobhna Aggarwal, from Banasthali Vidyapith. This article gives an overview of the CWG scam with the events that happened.

Introduction

The 2010 New Delhi Commonwealth Games have been marred by corruption and mismanagement, which have skewed India’s reputation as a nation ravaged by high levels of fraud and misuse. Commonwealth Games was founded in 1930 and is an internationally successful multi-sport event involving athletes from the Commonwealth Nations Games. The event is organized every four years by the Traditional Wealth Games Federations. CWG scam was one of the biggest Indian scams involving rounding of Rs. 70,000 crores. Just half of the amount allocated was estimated to be spent on Indian sportspeople. The athletes were supposedly forced to move from those allocated by the authorities to shabby flats. Reports of the Central Vigilance Commission revealed that Suresh Kalmadi, Chairman of the Organizing Committee of the Games, had offered Swiss Timings a contract of Rs 141 crore for its time-limiting equipment, which was unduly high by Rs.95 crore. All the suspects, including Kalmadi, have been charged with criminal conspiracy, theft, talking, and have been charged in compliance with the parts of the Corruption Prevention Act.

Background of the whole scam

The Games were held in the capital city of New Delhi, where 71 countries participated. It was a sporting event lasting 12 days. Approximately 12 billion Rupees have been spent on infrastructure growth. Twenty cities have been developed for tourist destinations. A special village was developed for the Commonwealth game called “Game Village”.

The Commonwealth games committee was as follows:

• Suresh Kalmadi- Chairman
• Randhir Singh- Vice Chairman
• Lalit Bhanot- Secretary General
• Anil Kumar Khanna- Treasurer
• Michael Fennell, Mike Hooper, Rakesh Mehta, N. Ramchandran- Members

The Commonwealth Games is an international multi-sport event featuring competitors from the Commonwealth of Nations. The commonwealth games were scammed in the awareness that the preparatory stage of the 2010 Commonwealth Games held in New Delhi involved large-scale misappropriation of funds. The issue posed was that many political and administrative aspects were posed, which ruined the part of the Scam 2010 of the Commonwealth Games (CWG). Several other concerns have also been illustrated, such as maintenance of the stadiums was deferred and program management had a flop display outside the desk for a huge mess of the 2010 Commonwealth Games Scam.

The budget for the venues was allocated – the initially planned amount was Rs. 1000 crore but later it was revised to Rs. 2460 crore. The amount spent on Jawaharlal Nehru stadium was 961 crore. On Ferozshah Kotla stadium was 85 crore, on Indira Gandhi stadium was 669 crore, on Dhyan Chand hockey stadium was 262 crore.

Facts and figures i.e.- Delhi government’s CWG related infrastructure spends–

• Rs. 670 crores on stadium (Amount directly spent on Commonwealth games
• Rs. 3700 crores (Flyovers and Bridges, including Barapulla Nallah)
• Rs. 450 crores (ROB, RUB* at Indira Gandhi International Terminal Network
• Rs. 215 crores (BRTS from Ambedkar Nagar to Delhi Gate)
• Rs. 1800 crore (Augmentation of DTC fleet)
• Rs. 900 crores (Construction of resurfacing of roads)
• Rs. 650 crores (strengthening and resurfacing of roads)
• Rs. 525 crores (Street- Scaping)
• Rs. 150 crores (Road signages)
• Rs. 3000 crores (Metro Connectivity)

In addition, M.P formed an Organizing Committee. As Head, Suresh Kalmadi, President of the IOC. A budget was planned with Rs. 1620 crores that ultimately overflowed at Rs. 11500 crores. And the projected cost is essentially astonishing Rs. 70000 crores.

Amount spent on other facilities and the report of scam stated some of the facts like-

• Bus Services- Rs. 18000 was spent on the DTC bus service, the Delhi government had spent 60 lakhs to buy a bus, but the initial cost of the service was only 40 lakhs.
• Metro Services- During the times of Games, Delhi Government had spent a huge amount on Extension of Delhi metro line, amount spent was around 3000 cr., Delhi government spent around 10 lakh on each pillar but the actual cost was 7 lakh per pillar.
• Ballon Cose and Service- In the opening ceremony of CWG there was a special attraction for all guests. Its costing around 70 crores, the actual cost of this Aerostat was 40 crores as contracted in U-K based company.

After the event ended complaints like dirty quarters, leaky walls, incomplete construction The arrival of athletes, inflation, dengue fever, never-ending construction close by, last-minute problems, were reported. All were also seen as fraud. The whole event seemed to be a major hoax about the history of India.

It was alleged that the names of some politicians came forward i.e.- Suresh Kalmadi, Sheila Dikshit, Manmohan Singh. Many Bureaucrats like Lalit Bhanot Darbari, TS Darbari, Sanjay Mahindroo, BS Lalli, M Jayachandran. Businessmen like RSP Sinha, SM Talwar, NK Jain, Jitendra Garg were also said to be involved.

For all the wrong reasons in history, the Commonwealth Games would be remembered. The scam contributed to an astounding 70,000 crores for the Government. The Games pulled out a labyrinth of corrupt transactions, with inflationary contracts most of them. Instead of choosing companies that provided the best rates, equipment, and facilities, companies that have over-quoted have been employed. Often for inexplicable purposes companies that offered better deals were disqualified. The Committee of Inquiries indicated that it was a sort of “badmaash company.” Many of Kalmadi’s most proche aid workers, such as Lalit Bhanot and V K Verma, were also arrested.

Role of Suresh Kalmadi

Suresh Kalmadi (born May 1, 1944) is an Indian politician and senior sports director. In the past, he was a National Indian Congressman. From Pune till May 2014, he was a parliamentarian. He is said to have engaged during his time as Chairman of the Indian Olympic Association and President of the 2010 CommonWealth Games in unethical activities linked to the 2010 Commonwealth Games. He was accused of conspiracy, falsifying, misconduct, and of being investigated for conspiracy in April 2014 under the Prevention of Corruption Act, but still faced no trial.

The action of Kalmadi around the commonwealth games in 2010 was checked with the request to the Central Bureau of Investigation (CBI) to investigate some aspects of the game organized by the Central Vigilance Commission. On 25 April 2011, in the timing-scoring-result (TSR), CBI arrested Suresh Kalmadi, Chairman of a former CWG Organizing Committee (OC). On 20 May 2011, CBI filed the first charges against Kalmadi in a special CBI court. It was arrested in compliance with Sections 120B (criminal conspiracy) and 420 (cheat) of the Indian Penal Code. The CBI claimed that he was the principal person tasked with granting TSR system contracts to a Swiss corporation. In addition to Kalmadi, the CBI has named two firms, eight people, including the OOC former Secretary-General, Lalit Bhanot, and the former Director-General VK Verma as the accused. The prosecution is not only a member of the Office of the Prime Secretary of the CWG but also of the General Sector.

Following his arrest and accusation of corruption Kalmadi’s membership in the Indian, National Congress Party was suspended. The President of the Indian Olympic Association was suspended from office on 26 April 2011. 

On 1 July 2013, he lost to Qatar’s Dahlan Jumaan Al-Hamad to the title of President of the Asian Athletics Association, a job he held for thirteen consecutive years. In the corruption case of the Commonwealth Games, he was convicted and eventually given bail. The scam was one that attracted a lot of international media attention, particularly after it was found unsatisfactory in the sports facilities at the games. In 2011, the Central Investigation Bureau investigated the scam and filed charges against Kalmadi and others.

The allegation was brought against Kalmadi for awarding inflated Games contracts, including one worth Rs. 141 crore to Swiss Timing. Rs. 95 crores were inflating the contract. Other Kalmadi colleagues such as Lalit Bhanot and V K Verma were arrested as well. Sheila Dikshit, then Chief Minister of Delhi, had dismissed her government’s accusations of corruption and said, “All things were done with the national interest and reputation in mind”.

Suresh Kalmadi was in prison for 10 months, and he was asked by the courts to pay a security fee of $500,000 in 2019. Suresh Kalmadi was in prison for ten months. On 13 July 2012, a Delhi court allowed Kalmadi to attend the 2012 Olympics in London. However, on 25 July 2012, he was barred from participating in the opening ceremony of the London Olympics by the Delhi High Court, which argued his presence could cause the nation “embarrassment.” During the inquiry in Tihar prison, he appeared to be suffering from dementia. Medical studies have not proven his point conclusively.

CBI Investigation and Arrest made

The case was a probe to CBI and CBI filed a charge sheet terming former Commonwealth Games Organising Committee chief Suresh Kalmadi as the “mastermind” within the R104-crore temporal order, evaluation, and Result devices (TSR) scam.

The agency has charged ten others, together with 2 firms — Swiss temporal order, which was awarded the contract, and AKR Constructions, a Hyderabad-based firm.

The corporation was awarded the contract of putting in property of all TSR devices. “The cashier of the corporate has returned on record, the expression that the money arrived within the account and it absolutely was stashed as funds meant for distribution among laborers engaged within the project,” aforementioned a CBI supply at home with the investigations.

The CBI has additionally named former executive of OC Lalit Bhanot, former director-general VK Verma, OC joint director general (Sport) ASV Prasad, deputy director-general (procurement) Surjit Lal, money dealer M Jayachandran, A K Reddy, decision-maker of AKR Constructions, and also the promoters of Faridabad-based Gem International, AK Madan, and metal Arya. The Faridabad firm outsourced a considerable portion of the contract that country Timing-Omega won.

All defendants are charged below sections 120(B)(criminal conspiracy), 420(cheating), 468(forgery), and 471(using solid documents) of the IPC and interference of Corruption Act.

The work agency has declared Reddy, Arya, and Madan, as declared offenders, and has issued non-bailable warrants against them. The social control board would question Kamadi, as the court allowed the agency to interrogate him in reference to the money wash case. Besides Kalmadi, the court additionally allowed the male erectile dysfunction to question Bhanot, Prasad, and Lal and directed the agency to file its report within a month. The CBI has additionally asked Kamadi to furnish details of his bank accounts, properties, instances of foreign travel, and transactions of exchange.

Court Trial: a critical analysis

A special court has accepted CBI’s closure report in Associate in Nursing alleged corruption case about the 2010 Commonwealth Games (CWG) against many officers of the Central construction Department (CPWD), urban center Development Authority (DDA), a personal firm, and its director.

Accepting the closure report, Special CBI decided Ajay Kumar Jain determined that proof collected by the agency throughout its probe within the case lodged in 2012 didn’t establish the offenses alleged against the persons named within the FIR.

“Oral and documentary proof collected (by CBI) throughout investigation don’t establish the alleged offense against the suspect persons. Consequently, the closure report stands accepted,” the decision is the same.

The case was registered by CBI against numerous officers of the CPWD, DDA, a personal firm — M/s knife Naresh Sports Pvt Ltd — and one in all its administrators for the alleged offenses underneath sections 120B(criminal conspiracy) browse with 420(cheating) of IPC and underneath provisions of the bar of Corruption Act.

In its FIR, CBI had alleged that this suspect had entered into a criminal conspiracy to cheat the government over the development of 5 artificial athletic tracks at numerous sporting venues for the 2010 games.

It was alleged that the contract for these works was awarded for Rs. 637 crores large integer in favor of knife Naresh Sports Pvt Ltd at extortionate rates by lawfully justifying the rates, thereby inflicting undue monetary gain to the contractor and corresponding wrongful loss to the govt.

The agency had conjointly claimed that the joint tendering committee had wilfully molded the eligibility criteria within the tenders to favor the corporate that didn’t have technical experience and knowledge.

After conducting the investigation, CBI filed a report within the court seeking closure of the case voice communication no proof was found within the matter against any of the persons and also the company named within the FIR.

All the suspects were charged underneath numerous sections of the IPC, together with section 467(forgery of valuable security), which entails life term as most penalization.

The court had framed substantive charges underneath section 13(2) browse with section 13(1)(d)(criminal misconduct by public servants) of the bar of Corruption Act against Kamadi.

The court, whereas framing charges, had determined that the Swiss temporal arrangement was selected on a “nomination basis” and false expression of interest was printed to make others stay away, and also the request for proposal was created restrictive.

It is conjointly the same that MSL Spain, whose abundant lower bid of Rs sixty-two large integers for the TSR system was rejected by OC, was “fraudulently disqualified” at the pre-qualification stage leading to a “single tender situation”.

Regarding Swiss temporal arrangement Omega, which was conjointly associated with a nursing suspect within the case, the court had the same because the firm that was allegedly awarded the contract at extortionate rates, isn’t showing within the court despite correct service of the summons and its “trial is separated.”

During the arguments on charges, CBI counsel VK Sharma had argued that Kamadi et al. had set to award the contract for putting in TSR system for the CWG to Swiss temporal arrangement even before the firm had bid for it.

Charges framed and punishment

CWG Organising Committee chairman Suresh Kalmadi was suspected of allegedly cheating, conspiring, and inflicting a loss of over Rs ninety large integer to the general public finances in an exceedingly Games-related graft case.

Charges were framed beneath numerous provisions of the IPC and also the hindrance of the Corruption (PC) Act against Kamadi and 9 others, together with former OC executive Lalit Bhanot. Besides cheating and conspiracy, the suspect also will be charged with the offenses of forgery beneath the IPC and criminal misconduct by public servants beneath the computer Act.

Charges were framed as beneath the entire 9 suspects.

Section 120B (criminal conspiracy), scan with 201 (destruction of evidence), 420 (cheating), 467 (forgery of valuable security), 468 (forgery for the aim of cheating), 471 (relating to forgery), 506 (criminal intimidation) of the IPC Section 13(1)(d) scan with section 13(2) (criminal misconduct by public servants) of the computer Act were framed.

Conclusion

The 2010 Commonwealth Games, command in the national capital, from the terribly starting the event was shrouded in controversies, which regularly surfaced and have still not been absolutely resolved. Issues were raised throughout the propaedeutic part, with construction work falling overdue and volunteers to quit in massive numbers attributable to discontentedness with their assignments and with the coaching program. Gross violations of workers’ rights were reportable at construction sites, wherever staff was forced into begging. The conclusion of the Games dropped at the four additional problems, like the reportable flouting of catching rules by officers of the Organising Committee and therefore the subsidization of labor contracts to incompetent agencies at vastly inflated costs.

Reference

• http://www.thehindu.com/sport/other-sports/cwg-committee-ioa-come-under-rti-act-court/article77008.ece, Jan 7, 2010
• The Economic Times (India) http://articles.economictimes.indiatimes.com/2011-04-25/news/29471351_1_dig-s-kpalsania-suresh-kalmadi-cwg-scam
• http://www.governancenow.com/news/regular-story/cwg-scam-court-frames-charges-against-kalmadi-9-others
• The Hindu (India) Major Scam Hits Commonwealth Games, Jul 31 2010

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