CWG scam: Fresh case against 6 OC members

The CBI registered a fresh case for alleged irregularities in sportswear retailing and merchandising during the sports event.

Updated: May 07, 2011, 00:12 AM IST

New Delhi: The Central Bureau of Investigation (CBI) has filed another first information report (FIR) in the alleged multi-crore Commonwealth Games overlays scam, an official said Friday.

"The FIR was registered in connection with merchandising and retailing of sports wear May 3," said CBI spokesperson Dharini Mishra.

"Six Commonwealth Games organising committee members -- V.K. Verma, Surjeet Lal, K.U.K Reddy, M. Jayachandran, Ram Mohan and Sangeeta Welingkar -- and two private firms Premier Brands Private Ltd. (PBPL) and its parent company Compact Disc India Ltd are named in the FIR," said a CBI official.

The official said that Commonwealth Games Organising Committee extended undue favours to appoint PBPL as the master licensee for merchandising, online and retail, for the Games.
The committee had fixed a minimum royalty of Rs.7.05 crore. The CBI alleged that after scrapping the earlier bid on flimsy grounds, the evaluation committee dishonestly considered PBPL on the basis of the goodwill of its parent company -- Compact Disc India Ltd -- and gave the company master license for merchandising on an offer of Rs.5.2 crore.

"PBPL submitted two cheques amounting to Rs.3.52 crore but they bounced. The committee did not receive any amount from PBPL," said the official.

The official also said that PBPL used the CWG brand and earned a huge profit, but did not pay anything to the organising committee. The accused officials caused huge pecuniary advantage PBPL and loss to the government exchequer.
The official said that the CBI also conducted raids at 10 places at five cites -- Mumbai, Chandigarh, Delhi, Gurgaon and Panchkula.

A total of 12 FIRs have been filed for financial irregularities in organising the mega event in the capital in October 2010.