CWG investigators get cracking; Village builder, OC in trouble

Trouble brews for those connected to CWG as ED files case against OC & DDA blames Village builder for fiasco.

Zeenews Bureau

New Delhi: The multi-pronged probe into the 2010 Commonwealth Games scam gathered steam today with the ED registering a case for alleged Foreign Exchange violation and the Delhi Development Authority (DDA) blaming CWG Village builder EMAAR-MGF for deficient construction.

The ED was asked to probe the foreign deals of the OC after the Queen’s Baton Relay had come under intense media scrutiny for irregularities. A case under FEMA has been registered against the officials.

A CBI team visited the Games Organising Committee`s office here on Monday.
"The CBI is working in close coordination with the ED in connection with the case registered by the directorate under FEMA," a source said.
Complaints received by the CBI include those pertaining to works carried out by the Central Public Works Department (CPWD).

"The CBI is awaiting reports from the Central Vigilance Commission (CVC), the comptroller and auditor general (CAG) and the I-T department. The CAG has its own central technical examiners and will do a financial audit. If something crops up, the CBI will move in," the source said.

On the other hand, the DDA has submitted a report to the Union Urban Development Minister Jaipal Reddy, putting the blame of the glitches in the CWG Village. There were various issues like incomplete construction, dirty rooms and bathrooms, flooded basement, poor construction etc. that had led some athletes to stay in Delhi’s five star hotels initially.

On October 7, Reddy wrote to the DDA to say "It has been widely reported that EMAAR MGF Construction Private Limited, has not executed the project of the development of the Games Village diligently and efficiently. There are serious complaints against the project developer, including complaints of construction against the provisions of the sanctioned plan, as well as not adhering to the obligations as per the Project Development Agreement. There have also been reports of several delay as well as deficiency in the execution of the project, which have not only adversely affected the image of DDA but also the Common Wealth Games as a whole.

DDA is requested to send a detailed report on the above mentioned subject within a week."

It is reported that some action will be taken against EMAAR by this weekend. The 1,168 flats in the village were constructed at a cost of over Rs.1,000 crore and the project was delayed. The work to maintain cleanliness in the village continued even after athletes and delegates started arriving for the Games.

"The ministry will soon direct the housing body on the issue after examining it. Then the DDA can take action against the private builder," the source said. Asked about the nature of action, the sources said there
are "adequate provisions in the agreement" with the builder to
take action against it for faulty execution of the project.

These could be confiscation of security deposit or
blacklisting of the company, they said.

Meanwhile, the CBI is verifying 20 complaints of alleged misappropriation of funds by Commonwealth Games Organizing Committee. In another development, the Central Vigilance Commission
(CVC) found discrepancies in tenders and alleged
misappropriation amounting to about Rs 8,000 crore.

The Income Tax department conducted searches in the
premises of BJP leader Sudhanshu Mittal and some consortiums in and around Delhi
and in Chandigarh and Ludhiana in connection with alleged
financial irregularities in works related to the just
concluded Games.

More than 200 officials of the I-T department searched
about 30 premise of four business consortiums, with a foreign
entity in each, to probe contracts worth more than Rs 700
crore which were awarded to execute overlays and other works
for the sporting extravaganza.

I-T department sources said the first consortium-- PICO
international and Deepali Designs-- with Mittal as Director
and his relatives as other stakeholders, has bagged contracts
worth about Rs 230 crore.

Besides the special Committee instituted by the Prime
Minister Manmohan Singh to probe the alleged corruption, the
Comptroller and Auditor General, Central Vigilance Commission,
Income Tax Department, Enforcement Directorate and the CBI are
also probing OC officials.

-Agencies inputs

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