CWG scam: CBI filed case against 6 OC officials, 2 firms

New Delhi, May 6 (PTI) The CBI has registered a new case
against six officials of CWG Organising Committee and two
private firms for extending undue favours while appointing
official Master Licensee for merchandising and retailing
during the games.
Immediately, after filing of the case, a team of CBI
officials carried out search operations at 10 locations in
Delhi, Mumbai, Gurgaon, Chandigarh and Panchkula.
The agency has named six OC members including the then
Director General V K Verma, Joint Director General (Finance) K
U K Reddy, DDG (Legal) Ram Mohan, DDG (Procurement) Surjit
Lal, (F and A) M Jeychandran and the then ADG (Image and Look)
Sangita Welingkar and firms Compact Disc India Limited (CDIL)
and its group arm Premier Branch Private Limited (PBPL),
official sources said.
The Central Bureau of Investigation alleged that these
officials entered into criminal conspiracy with the officials
of the firms and by abusing their official positions, extended
undue favour to PBPL in appointing it as official Master
License for Merchandising and On-line and Retail
Concessionaire for CWG-2010 for sportswear, casual wear, kids
wears against a minimum royalty amount of Rs 7.05 crore, they
said.
The agency alleged in the case that after scrapping of the
earlier bid on flimsy grounds, the Evaluation Committee of the
OC CWG-2010, dishonestly considered the PBPL on the basis of
the goodwill of CDIL, and on negotiations, PBPL submitted an
offer of Rs 5.20 crore for acquiring all the rights of master
licensee for merchandising, they said.
"Thereafter the private company (PBPL) submitted two
cheques amounting to Rs 3.5 crore but the same were
dishonoured by the bank and as such the OC did not receive any
amount from the private company," official spokesperson
Dharini Mishra said here.
Thus, it is alleged that the accused private company
actually used the CWG brand properties and earned a huge
profit, but did not pay anything to the OC, and the accused
public servants caused huge pecuniary advantage to director of
the private company and corresponding wrongful loss to the
government exchequer, she said.
The CBI has registered nine FIRs so far in the cases
related to alleged irregularities in the conduct of
Commonwealth Games last year. This fresh case will take the
tally to 10.