New Delhi: The Central Bureau of Investigation (CBI) registered a case against four officials of the state-owned Mahanagar Telephone Nigam Limited (MTNL) and employees of private company for irregularities in broadcast network contract for the 2010 Commonwealth Games (CWG), an official said Wednesday.
The private company is Noida-based HCL Infosystems.
"The CBI has registered a case under the Prevention of Corruption Act on the allegations that the MTNL officials awarded the work of broadcast network based on Internet Protocol and Multi-Protocol Label Switching (IP/MPLS) technology at an exorbitant price to HCL Infosystems dealing in optical fibre transmission," said CBI spokesperson Dharini Mishra.
"MTNL officials RSP Sinha, former chief managing director, SM Talwar, former executive director, NK Jain, general manager (corporate sales), Jitendra Garg, deputy general manager, awarded the contract at an exorbitant price of around Rs.570.12 crore after they manipulated the specification so that HCL Infosystems got the contract," added Mishra.
The broadcast data transmission requirements for the Games were very limited - based on optical fibre transmission - for which an initial estimate was around Rs.31.43 crore.
"The MTNL in their proposal included broadcast video network that enhanced the cost by around Rs.380.04 crore, allegedly with an intention to cause huge advantage to HCL Infosystems and loss to the government," said the official.
The CBI said that the enhancements in the scope of work were made by MTNL officials to give the sub-contract to HCL Infosystems.
After the registration of the case, the CBI conducted raids in various parts of the country, including Delhi, Noida, Jaipur and Patna.
"Documents relating to immovable and movable property belonging to accused and other incriminating documents were seized. Raids are still going on," said the official.
Till now, a total of 13 first information reports (FIRs) have been filed by the CBI for financial irregularities in organising the Games.