The multi-pronged investigation into the 2010 Commonwealth Games scam gathered pace on Tuesday with the Enforcement Directorate registering a case for alleged foreign exchange violation. Meanwhile, Income Tax sleuths conducted sear- ches on 23 premises across Delhi and the National Capital Region, even as the CBI is looking into separate complaints of corruption.
FEMA violation
In the first case to be filed, the ED is proceeding against a few officials of the Games’ Organising Committee (OC) for alleged violation of the Foreign Exchange Management Act (FEMA).
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The projects which came under the scanner relate to venue development and overlays contracts awarded to four consortiums by the OC.
BJP activist’s links
Among the consortiums whose premises were searched is Pico Deepali Overlays Consortium, which comprises Pico International and its Indian partner Deepali Designs. Searches were also conducted at the residence of Bharatiya Janata Party activist Sudhanshu Mittal, who is alleged to have close links with the firm. The consortium was awarded a contract worth Rs. 230.76 crore.
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The IT Department conducted “surveys” at seven other places, including Ludhiana and Chandigarh. Surveys were also conducted on the premises of real estate firm Ireo in Gurgaon, which, too, is allegedly linked with Mr. Mittal.
In a statement released to a news agency, Ireo said: “Some officials from the IT Department have approached Ireo for certain information and clarifications, which are being duly responded to. Ireo doesn’t have any contract with the CWG 2010.”
The other three consortiums which won overlay contracts for various clusters are GL Litmus and Meroform (Rs.165.45 crore); Nussli India and Comfort Net (Rs.141.08 crore); and the ESG Arena JV Ltd. and D-Art India (Rs.92.94 crore). All four contracts were finalised by the OC on June 2.
An IT official said the probe was specifically looking into the contracts awarded by the OC, and the role of its officials and contractors, which includes bribery charges.
Evasion of taxes
The department officials are scrutinising documents relating to all tenders and contracts to detect possible evasion of taxes through over-invoicing and under-reporting of accounts.
Complaints with CBI
The CBI has so far received over a dozen complaints of corruption in execution of CWG-related projects. These are being verified. However, the agency has not yet registered any case or instituted a preliminary enquiry. The CBI is working in close coordination with the Central Vigilance Commission, the Comptroller and Auditor-General and related departments.