Commonwealth Games Scam, 2010

Author: Lipi Saini , National Forensic Science University, Delhi

 

The Commonwealth Scam: The Game of Politics 

The Commonwealth Games 2010, held in New Delhi, India, were expected to showcase India’s growth globally and its capability to host a major international sports event. 

However the event was dominated by a massive corruption scandal that not only affected India’s image on the global level but also led to major financial loss. The event involved allegations of corruption, mismanagement, and financial irregularities. 

Background: Commonwealth Games 2010

 The Commonwealth Games are a multi-sport event held every 4 years involving athletes from the Commonwealth of nations. The Commonwealth of Nations included countries like the United Kingdom, Canada, Australia etc. The 2010 Commonwealth games were held in India, the second time in Asia after Kuala Lumpur in 1998, New Delhi was selected as the host city in 2003, and the preparations began thereafter. In 2010 the Chief Minister of Delhi was Late. Sheila Dikshit. 

The organising committee of Commonwealth games was headed by Suresh Kalmadi, he promised a spectacular event, with state of the art infrastructure and world class facilities. The initial budget for the commonwealth games was estimated at around ₹1,200 crore (approximately $240 million). However by the end of the event the cost spiked up to ₹70,000 crore (approximately $14 billion). This massive expenditure of cost, coupled with numerous allegations of corruption, led to widespread criticism. 

The Scandal: Key Allegations & Findings

The Commonwealth Games 2010 scam encompassed various facets of corruption, financial management, including bid rigging, favouritism etc. The key allegations can be categorised as follows:

1. Inflated Contracts & Kickbacks

One of the most glaring aspects of the scandal was the awarding of contracts at high prices. Many contracts were given to the companies which had no prior experience in the field, often at prices higher than the market rate. The contracts included everything from construction work to the procurements of equipment and even basic services like catering and housekeeping and all the basic amenities.

2. Financial Management

The financial management of the Commonwealth Games was marked by gross inefficiencies and irregularities. The Comptroller & Auditor General (CAG) of India, in its report highlighted instances of mismanagement of money. Which included unauthorised payments, double billings, and unnoticeable expenses.

For instance, the CAG found that the organising committee spent around ₹1.55cr. on renting out luxury cars for officials, even though the cars were never used. Similarly a large amount of money was spent on renting equipment which was never used or never delivered. Moreover some funds were being extracted through fake bills and invoices.

3. Substandard Infrastructure 

Despite the massive expenditure on infrastructure for the games, it was far from world class. It was not up to class as the amount spent was too high. Several stadiums and facilities were completed just some days before the event, many were poor in construction and they were in very bad condition.

The collapse of a bridge near the Jawaharlal Nehru Stadium just before the opening ceremony of the game. The bridge, meant to be used by spectators and officials, collapsed under its own weight, injuring several workers. This incident, along with other infrastructure failures, raised serious concerns about the safety and the safety and preparations of the venues.

The Athletes village, which was supposed to be the residence for athletes and officials during the games, was criticised for its poor hygiene and unfinished facilities. Several athletes and officials expressed their displeasure. 

4. Nepotism & Favouritism

The organising committee was accused of favouritism and nepotism in the allocation of contracts and appointments of officials. Many contracts were given to the companies who did not have prior experience and to those who had close ties with influential politicians and officials.

Kalmadi was accused of awarding lucrative contracts to his friends and associates without following proper procedures. One such contract involved the procurement of timing, scoring, and result systems for the Games, which was awarded to a Swiss company at an inflated price.

Kalmadi’s favouritism extended to appointments of officials as well. Several senior officials in the organising committee were appointed based on their personal connections with Kalmadi.

Investigations & Legal Proceedings

The commonwealth games 2010 scam prompted multiple investigations by various agencies, including the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED). These investigations led to several high- profile arrests, legal proceedings, and convictions. 

1. Suresh Kalmadi’s arrest and trial

Suresh Kalmadi, the head of Commonwealth games was arrested by the CBI in April 2011 on the charges of forgery, cheating and conspiracy. He was accused of alloting contracts at inflated prices, receiving bribes and misusing his position as the chairman of the organising committee.

After spending nearly 9 months in jail, he was released on bail in January 2012. The legal proceedings against him continued for several years, with Kalmadi pleading innocent throughout the trial. 

In 2016, the Delhi High Court discharged Kalmadi in one of the cases related to the Commonwealth games due to lack of evidence. However, other cases against him and several other officials are still pending in various courts. 

2. Arrests of Other Officials

Other than Kalmadi, several other officials involved in the organisation of the games were arrested and charged for corruption. Lalit Bhanot, the former secretary general of the organising committee and VK Verma the director general of the organising committee were arrested. Bhanot and Verma were accused of colluding with contractors to inflate prices and receive kickbacks. They were arrested in February 2011.

3. Investigations by the Enforcement Directorate

The ED conducted its own investigation into foreign exchange violations and money laundering aspects of the scandal. The ED seized assets worth millions of dollars.

In 2017, the ED filed a chargesheet against Suresh Kalmadi and others, accusing them of money laundering under Prevention of Money Laundering Act (PMLA). The chargesheet mentioned that Kalamdi and his colleagues had laundered money through various companies and bank accounts. 

Impact of the Scandal 

The Commonwealth Games, 2010 scam had long term consequences for both India and the Individuals involved.

• Damage to India’s image: The scam severely damaged India’s reputation on the global level. The country’s ability to host major international events was questioned. Many foreign observers criticised the corruption and mismanagement. The negative publicity surrounding the scam overshadowed the achievements of the athletes who participated in the games. India won a total of 101 medals, the focus was still on the corruption and controversies. What was the mistake of the Indian athletes?
• Political Backlash: The scandal had significant political repercussions in India. It led to widespread public anger and protests against the ruling party, which was in power at the time. The scam also contributed to the downfall of the Congress party, which was in power in the state.The opposing party accused the ruling party of corruption and shielding corrupt officials and failing to take timely action. In the 2014 general elections, congress suffered massive defeat.  Bharatiya Janata Party (BJP) won the elections. The issue of corruption, including the Commonwealth Scam played a significant role in the general election campaign.

• Legal and Administrative Reforms: After this scam there were calls for greater transparency and accountability in organising large scale events in India. The government introduced several legal and administrative reforms aimed at preventing similar scams in the future. These reforms included stricter regulations on public procurement, enhanced oversight of public spending, and greater transparency in the appointment of officials to organising committees. The government also gave powers to the CBI and the ED to tackle corruption more effectively.

Conclusion

The Commonwealth Games 2010 scam remains one of the most significant corruption scandals in India