Author : FAZILA, 1ST YR. BA.LLB. (HONS.) SHARDA UNIVERSITY SCHOOL OF LAW JUNE 2024
Abstract
The 2010 Commonwealth Games in New Delhi, intended to be a prestigious international multi-sport event, became notorious for widespread corruption and mismanagement, which significantly tarnished India’s image. Founded in 1930, the Commonwealth Games bring together athletes from Commonwealth countries every four years. The 2010 event, which was attended by 71 countries and lasted 12 days, was overshadowed by a huge financial scandal involving an estimated Rs. 70,000 crowns. Only half of the funds allocated to the athletes were used properly, while the rest was embezzled. Corruption was rampant, with games organizing committee chairman Suresh Kalmadi involved in inflated deals like Rs. 141 crore contracts with Swiss Timings for equipment worth Rs. 95 million. Key members of the organizing committee and various bureaucrats and businessmen were charged with conspiracy, cheating and forgery under sections of the Indian Penal Code and the Anti-Corruption Act.
The extensive infrastructure costs of the event, including stadiums, metro links and transport services, were characterized by increased costs and inferior work. The reports revealed many problems, such as poor accommodation, incomplete construction work and hygiene problems for the athletes. The Central Bureau of Investigation (CBI) investigated the scandal, which led to the arrest and prosecution of several individuals, including Kalmadi, for their role in financial mismanagement and fraud.
Despite its intention to showcase Indian talent, the event highlighted serious administrative and political failures that led to widespread criticism and damage to the country’s image. The CBI investigation and subsequent court proceedings highlighted the depth of corruption and the need for strict measures to prevent such violations in the future. The 2010 Commonwealth Games are remembered as one of the biggest financial scandals in India’s history, highlighting significant challenges and management transparency in hosting major international events.
Introduction
The 2010 Commonwealth Games in New Delhi were marred by corruption and mismanagement, tarnishing India’s image as a country marred by numerous frauds and abuses. Established in 1930, the Commonwealth Games is an internationally successful multi-sport event featuring Commonwealth Games athletes. The event is organized every four years by the federations of traditional fortune games. The CWG scam was one of the biggest scams in India involving a rounding of Rs. 70,000 crowns. It is estimated that only half of the prize money was used for Indian athletes. It was assumed that the athletes had to move from accommodation provided by the authorities to dirty accommodation. Reports from the Central Vigilance Commission revealed that Games Organizing Committee Chairman Suresh Kalmadi offered Swiss Timings Rs 141 crore for the time-limited equipment, which was a whopping Rs 95 crore. All the suspects, including Kalmadi, have been charged with criminal conspiracy, theft, uttering and will be charged under sections of the Anti-Corruption Act.
The background of the whole scam
The games took place in the capital New Delhi with 71 countries participating. It was a sporting event that lasted 12 days. About 12 billion rupees were spent to increase infrastructure. 20 cities have been developed as tourist destinations. A special village called “Game Village” was developed for the Commonwealth Games.
The Commonwealth Games Committee was as follows:
Suresh Kalmadi – Chairman
Randhir Singh – Vice Chairman
Lalit Bhanot – General Secretary
Anil Kumar Khanna – Treasurer
Michael Fennell, Mike Hooper, Rakesh Mehta, N. Ramchandran – Members
The Commonwealth Games is an international multi-sport event where athletes from the Commonwealth compete. The Commonwealth Games were rigged with the knowledge that the build-up to the 2010 Commonwealth Games in New Delhi involved massive misappropriation of funds. The problem was that many political and administrative considerations were raised that destroyed some of the Commonwealth Games (CWG) 2010 scams. Several other issues were also described, such as stadium maintenance being delayed, and the screen being turned off when managing programs. chart about the massive mess of cheating at the 2010 Commonwealth Games.
The budget for the venues was split – the originally planned amount was Rs. 1000 crore but later it was revised to Rs. 2460 million euros. 961 million euros were spent on the Jawaharlal Nehru Stadium. Ferozshah Kotla Stadium was 85 million, Indira Gandhi Stadium was 669 million, Dhyan Chand Hockey Stadium was 262 million.
Facts and Figures i.e.
CWG Related Infrastructure Expenditure of Delhi Govt –
Rs. 670 Crore on Stadium (Direct Outlay on Commonwealth Games
Rs 3700 Crore (Flyers and Bridges including Barapulla Nallah)
Rs 450 Crore (ROB, RUB* on Indira Gandhi International Terminal Network)
215 BR TS Astmbed. Nagar to Delhi Gate) Rs 1800 Crore (DTC fleet augmentation)
Rs surfacing)
Rs (road strengthening and surfacing). 525 crores (street design)
3000 crores (Metro Connectivity)
M.P also formed the organizing committee, IOC president The budget was 1620 crores, and the estimated cost is basically staggering.
The amount spent on other facilities and the fraud report showed some facts like –
Bus services – Rs. 18,000 was spent on the DTC bus service, the Delhi government spent 60 lakhs to buy the bus, but the original cost of the service was only 40 lakhs.
Metro services – During the Games, Delhi Government spent a huge amount to extend the Delhi Metro line, the amount spent was around 3000 crores, Delhi Government spent around 10 lakhs for each pillar, but the actual cost was 7000 crores. column
Ballon Cose and Service – CWG opening ceremony was a special attraction for all guests. It was priced around 70 million and the actual cost of that Aerostat was 40 million for a UK based company.
Complaints such as dirty facilities, leaky walls, unfinished construction when the athletes arrived, inflation, dengue fever, endless construction work nearby, last minute problems were reported after the event ended. Everything was also seen as a fraud. The whole event felt like a big fraud in Indian history.
It has been claimed that the names of some politicians like Suresh Kalmadi, Sheila Dikshit, Manmohan Singh have appeared. Many bureaucrats like Lalit Bhanot Darbari, TS Darbari, Sanjay Mahindroo, BS Lalli, M Jayachandran. Businessmen like RSP Sinha, SM Talwar, NK Jain and Jitendra Garg were also said to be involved.
The Commonwealth Games are remembered for all the wrong reasons in history. The scam generated a staggering €70,000 million for the government. The games revealed a maze of corrupt deals, most of which were inflationary contracts. Instead of choosing companies that offer the best prices, equipment and skills, overpriced companies are hired. Companies that offered better deals were often rejected for inexplicable reasons. The inquiry committee stated that it was a kind of “badmaash company”. Many of Kalmad’s aides like Lalit Bhanot and V K Verma were also arrested.
CBI investigation and arrest
The CBI investigated the case, and the CBI filed a chargesheet naming former Commonwealth Games Organizing Committee chief Suresh Kalmadi as the mastermind behind the 104 million Euro Timing, Scoring and Scoreboard (TSR) scam.
The agency sent invoices to 10 others and two companies – Swiss Order, which won the contract, and Hyderabad-based AKR Constructions.
The company has a contract to own all TSR equipment. “The company’s money came back in writing saying that the money came into the account, and it must have been disguised as money meant to be distributed among the employees involved in the project,” the CBI insider said above.
The CBI has also named former OC director Lalit Bhanot, former director general VK Verma, OC director general (sports) ASV Prasad, deputy director (procurement) Surjit Lal, money trader M Jayachandran, A K Reddy. . AKR Constructions and Faridabad-based International, AK Madan and metal from Aryan Gem Promoters. The Faridabad company outsourced a significant portion of the contract, which was won by the country’s Timing-Omega.
All the accused have been charged under sections 120(B) (criminal conspiracy), 420 (cheating), 468 (forgery) and 471 (use of fixed documents) of the IPC and Corruption Act.
The Ministry of Labor declared Reddy, Arya and Madani as criminals and gave them non-bailable orders. Social Inspection interrogated Kama because the court allowed the agency to interrogate him in connection with the money laundering case. The court allowed the MED to interrogate Bhano, Prasad and Lal besides Kalmad and directed the agency to submit a report within a month. The CBI has asked Kamad to provide details of his bank accounts, real estate, foreign travel and currency transactions.
Trial: An in-depth analysis
The special court has accepted the final report submitted by the Central Bureau of Investigation (CBI) in the alleged corruption case related to the 2010 Commonwealth Games (CWG). The case involved several officials of the private company Central Public Works Department (CPWD), Delhi Development Authority (DDA) and its director.
After examining the closure report, special CBI judge Ajay Kumar Jain found that the evidence collected during the investigation initiated by the agency in 2012 did not establish the alleged crimes against those named in the First Information Report (FIR). ).
“The oral and documentary evidence collected by the CBI during the investigation does not enable the accused to be identified for the alleged crimes. Hence, the final report is accepted,” the judge observed.
CBI has registered a case against several officials of CPWD, DDA, private company M/s Knife Naresh Sports Pvt Ltd and one of its managers. The charges included criminal conspiracy under Section 120B of the Indian Penal Code (IPC) and cheating under Section 420 and provisions of the Prevention of Corruption Act.
According to the FIR, the CBI alleged that the accused conspired to defraud the government by building five artificial sports tracks at different sports venues for the 2010 Games. The contract for these projects was said to be worth Rs. Knife Naresh Sports Pvt Ltd was ordered to pay interest of 637 million euros, the prices of which were unreasonably justified, resulting in an unjustified financial gain to the entrepreneur and a corresponding illegal loss to the government.
The agency also alleged that the joint tender committee deliberately manipulated the tender eligibility criteria to favour the company despite its lack of technical knowledge and expertise.
After the investigation was completed, CBI submitted a report to the court requesting the closure of the case due to lack of evidence against any individuals or the company mentioned in the FIR.
All the suspects faced charges under various sections of the IPC, including section 467 (forgery of valuable security), which carries a maximum penalty of life imprisonment.
The court had framed formal charges under section 13(2) read with section 13(1)(d) (criminal misconduct by public servants) of the Prevention of Corruption Act against Kamadi.
When framing the charges, the court found that the Swiss timing was selected on a “nomination basis” and false expressions of interest were published to deter others, resulting in a restrictive request for proposal.
It was also noted that MSL Spain, whose significantly lower bid of Rs 62 crore for the TSR system was rejected by OC, was “fraudulently disqualified” during the pre-qualification stage, leading to a “single tender situation.”
Regarding Swiss timing Omega, which was also linked to a suspect in the case, the court mentioned that the firm allegedly awarded the contract at exorbitant rates, has not appeared in court despite being properly served with summons and its “trial is separated.”
During the arguments on charges, CBI counsel VK Sharma contended that Kamadi and others had decided to award the contract for installing the TSR system for the CWG to Swiss timing even before the firm had submitted a bid for it.
Framing of Charges and Punishment
CWG Organizing Committee Chairman Suresh Kalmadi has been accused of cheating, conspiracy and causing huge loss to the exchequer of over ninety rupees in the gambling transfer case.
Charges were filed against Kamad and nine others and former OC director Lalit Bhanot under several provisions of the IPC and also under the bar of the Corruption Act (PC). In addition to cheating and conspiracy, the suspect is also charged with forgery under the IPC Act and crimes against public officials under the Computer Act.
Charges were filed against all 9 suspects.
Section 120B (criminal conspiracy), scan 201 (destruction of evidence), 420 (cheating), 467 (forgery of valuable security), 468 (forgery with intent to defraud), 471 (relating to forgery), 506 (criminal intimidation) IPC scan of section 13 (1) (d) with section 13 (2) of the Computer Act (criminal conduct of officials) has been framed.
Conclusion
The 2010 Commonwealth Games, which took place in the nation’s capital, were surrounded by controversies from the event’s inauspicious beginnings, which surfaced regularly and have yet to be fully resolved. In the propaedeutic part, problems arose when construction works were delayed, and a huge number of volunteers quit because they were not satisfied with their tasks and the training program. Serious violations of workers’ rights were reported at construction sites where workers were forced to beg. The end of the Games was limited to four more issues such as violations of trapping rules reported by organizing committee officials and thus subsidizing the work contracts of incompetent agencies at hugely inflated costs.
FAQs
What were the consequences of the Commonwealth Scam?
The Organizing Committee violated the Minimum Wage Act of 1948, causing widespread labour exploitation, as revealed in the Commonwealth Fraud. Every day skilled workers were paid Rs. 120–130, while unskilled workers received.
Who broke the CWG scam?
In the TSR (Time Scoring Result) case, the CBI arrested former CWG Organizing Committee (OC) chairman Suresh Kalmadi on 25 April 2011. He was arrested for violating Section 420 (cheating) and Section 120 B (criminal conspiracy) of the Indian Penal Code.
Are the Commonwealth Games still a thing?
The search for a host will take just over two years before the 2026 Games are scheduled to take place. The host of the 2026 Commonwealth Games is still up in the air. The original host of the Games, the Australian state of Victoria, withdrew in July 2023 due to rising costs.
What challenges did the Community face?
There are many obstacles to the Community’s efforts to create sustainable societies. Difficult challenges include the impact of the Covid-19 pandemic, extreme poverty, inequality and climate change.
What is the value of the CWG scam?
In 2010, one of India’s biggest scams took place in New Delhi, the Commonwealth Games (CWG) scam, involving the theft of nearly 70,000 crores. Only half of the allocated money was earmarked for Indian athletes.
Is CWG a scam in India?
One of the biggest scandals in Indian history, the CWG scam involved embezzlement of Rs. 70,000 crowns. Indian athletes were expected to receive only half of the allocated funds. Allegedly, the athletes had to move from official residences to dilapidated houses.
What is Commonwealth Fraud in Delhi?
Fraud and mismanagement marred the 2010 Commonwealth Games in New Delhi and tarnished India’s reputation as a nation of rampant fraud and abuse. One of the biggest frauds in Indian history was the rounding of Rs. 70,000 crowns.
Is India a Commonwealth country?
India is by far the largest member state, home to almost 60 percent of the Community’s total population. It accounts for the fourth largest share of Commonwealth budgets and initiatives.
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
