CWG English - Part-1

Audit Report on
th
XIX Commonwealth Games
2010
Keport of the
Comptroller and Auditor General of lndia
Union Government [Civil]
Report No. 6 of 2011 - 12
[Ferformance Audit]
Tab|e o Contents
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) |||
reface
Lxecut|ve Summary
1 Introduct|on
1.1 Commonwea|th Games
1.2 Commonwea|th Games 2010
1.3 Commonwea|th outh Games - 2008, une
1.4 Crgan|sat|on of CWG-2010 - a comp|ex, |ong-term and mu|t|-
d|mens|ona| pro[ect
2 Study keport on 'reparedness for the
kIk Commonwea|th Games 2010'
3 Aud|t Approach
3.1 Aud|t Arrangements
3.2 Aud|t Cb[ect|ves
3.3 Aud|t Scope and Coverage
3.4 Aud|t Methodo|ogy
3.S Scope L|m|tat|on
4 Governance and Mon|tor|ng Arrangements
4.1 Award of CWG-2010 to De|h|
4.2 Weak Governance Structure
3.1.1 llnanclal and Compllance AudlL
3.1.2 AudlL of Lhe Crganlslng CommlLLee
3.1.3 SLudy 8eporL on reparedness for CWC-2010
4.1.1 Approval Lo lCA for blddlng, wlLhouL obLalnlng or
examlnlng Lhe lCA bld
4.1.2 vlslL of CCl LvaluaLlon Commlsslon ln AugusL 2003
4.1.3 CablneL noLe of SepLember 2003
4.1.4 8eporL of CCl LvaluaLlon Commlsslon of CcLober 2003
4.1.3 Maln feaLures of PosL ClLy ConLracL (PCC)
4.2.1 MulLlpllclLy of Agencles
4.2.2 CCM
4.2.3 8ole of M?AS
4.2.4 Apex CommlLLee
1
S
37
37
37
38
40
43
47
47
48
48
49
S0
S1
S3
S6
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) |v
C C n 1 L n 1 S
4.3.1 lormaLlon of CC
4.3.2 Members of CC
4.3.3 LxecuLlve 8oard of CC
4.3.4 Concerns expressed regardlng CC Covernance SLrucLure
4.3.3 Sphere of lnfluence of CC
4.3.6 Changes ln CC's Covernance SLrucLure from CcLober 2009
4.4.1 CommlLLee of SecreLarles (CoS)
4.4.2 CommlLLees ConsLlLuLed by M?AS
4.6.1 Cvervlew
4.6.2 Lmpowered CommlLLee under Lhe Chlef SecreLary, uelhl
4.6.3 LngagemenL of Shrl narayanswaml as Advlsor CWC - 2010
4.6.4 SLeerlng CommlLLee
4.6.3 unlfled 1rafflc and 1ransporLaLlon lnfrasLrucLure (lannlng and
Lnglneerlng) CenLre (u11lLC)
4.6.6 MulLlple llnes of command
3.4.1 CperaLlonal lans of lAs
3.4.2 CLher lannlng uocumenLs
6.2.1 8reak up of 8udgeL LsLlmaLes
6.2.2 CuanLum [ump ln budgeL esLlmaLes
6.2.3 LlmlLed Scope of Crlglnal 8udgeL LsLlmaLe (May 2003 8ld)
6.2.4 CLher reasons for CosL/ 8udgeL lncreases
4.3 1he Crgan|s|ng Comm|ttee (CC) and ko|e of MAS v|s--v|s CC
4.4 Co-ord|nat|on Comm|ttees
4.S Web-based pro[ect Mon|tor|ng System (MS)
4.6 ko|e of LG, De|h| and GNC1D
S |ann|ng
S.1 Cverv|ew
S.2 Seven ear W|ndow from Award to nost|ng of Games not ut|||zed
S.3 De|ayed I|na||sat|on of Genera| Crgan|sat|on |an (GC) and Games
Master Schedu|e (GMS)
S.4 De|ayed I|na||sat|on of CC |ans
S.S |ann|ng for Venues
S.6 De|ayed I|na||sat|on of |ans for C|ty Infrastructure
S.7 |ann|ng for Cther Act|v|t|es
6 I|nanc|a| Management of the Games ro[ect
6.1 8ackground
6.2 8udget|ng for CWG - 2010
62
71
7S
7S
79
79
80
81
82
82
83
84
8S
86
86
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) v
C C n 1 L n 1 S
6.3.1 Approval rocess
6.3.2 Summary of Approvals
6.3.3 uelayed granL of approvals
7.2.1 Cvervlew
7.2.2 lrregular dlsLrlbuLlon of work relaLlng Lo senslLlve conLracLs
7.2.3 uocumenLaLlon
7.2.4 llnanclal, LaxaLlon and legal advlce/veLLlng
7.2.3 rocesslng of aymenLs
7.2.6 oor managemenL of LaxaLlon lssues
7.2.7 CuLsLandlng Loans and Advances
7.2.8 lnLernal AudlL and vlgllance
7.3.1 8unchlng of ConLracLs ln 2010
7.3.2 lrregularlLles ln ConLracLlng
8.1.1 lnlLlal 8evenue LsLlmaLes
8.1.2 1rend of lncreaslng 8evenue ro[ecLlons
8.2.1 LxamlnaLlon of Crlglnal 8udgeL of CC
8.2.2 8evlsed 8udgeL of CC
8.2.3 AcLual 8evenue CommlLmenL and 8eallsaLlon
8.4.1 SelecLlon of SMAM as sponsorshlp and merchandlslng/
llcenslng ConsulLanL
8.4.2 1ermlnaLlon of ConLracL wlLh SMAM ln AugusL 2010
8.4.3 CeneraLlon of Sponsorshlp 8evenues
6.3 I|nanc|a| Management by GCI
6.4 I|nanc|a| Management |n GNC1D
6.S Cutstand|ng L|ab|||t|es
7 Interna| Contro|s and Dec|s|on Mak|ng w|th|n the CC
7.1 Structure]Act|v|t|es of CC
7.2 Interna| Contro| Lnv|ronment
7.3 Contract Management
7.4 CC-ICA re|at|onsh|p
7.S ko|e of Consu|tants
8 kevenue Generat|on by CC
8.1 kevenue-neutra||ty of the Games
8.2 C|a|m of revenue neutra||ty
8.3 De|ay |n |ann|ng for kevenue Generat|on:
8.4 Sponsorsh|p kevenue
92
94
9S
97
98
106
111
114
116
119
121
122
12S
126
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) v|
C C n 1 L n 1 S
8.4.4 lrequenL changes ln sponsorshlp plans
8.4.3 Sponsorshlp offers lgnored
8.4.6 AcLual CommlLLed/8eallsed Sponsorshlp revenues
8.4.7 8uslness Club of lndla (8Cl)
8.3.1 uelay ln preparaLlon of merchandlslng and llcenslng plan
8.3.2 AppolnLmenL of remler 8rands LlmlLed as sole llcensee
for Lhe Cames
8.3.3 LxecuLlon of Merchandlslng and Llcenslng rogramme
8.6.1 Cvervlew
8.6.2 naLlonal uomesLlc 8roadcasL 8lghLs
8.6.3 AppolnLmenL for lnLernaLlonal ConsulLanL for 8roadcasLlng 8lghLs
8.6.4 lnLernaLlonal 8roadcasL 8lghLs
8.8.1 Cvervlew
8.8.2 AppolnLmenL of 1lckeLlng ConsulLanL
8.8.3 AppolnLmenL of 1lckeLlng Agency
8.8.4 MarkeLlng of 1lckeLs
8.8.3 oor 1lckeL Sales
9.2.1 lnLroducLlon
9.2.2 uelays ln lannlng and Scoplng of overlays
9.2.3 8udgeLlng for Cverlays
9.2.4 unexplalnable shlfL from lLem-wlse conLracLs Lo 'ClusLer'
wlse conLracLs
9.2.3 lmproper LllglblllLy CrlLerla and LvaluaLlon
9.2.6 nexus, CarLellsaLlon and suspecLed leaklng of lnformaLlon
9.2.7 Clobal Companles merely acLlng as fronL
9.2.8 Award of ConLracLs
9.2.9 LxorblLanL raLes of Cverlays
8.S Merchand|s|ng and L|cens|ng
8.6 8roadcast|ng kevenues
8.7 8|g Screen and New Med|a k|ghts
8.8 1|cket|ng
8.9 Donat|on]kaff|e
9 Games |ann|ng Consu|tancy and Cver|ays
9.1 Games |ann|ng consu|tancy - ko|e of event know|edge
Serv|ces (LkS)
9.2 Venue Cver|ays
131
133
13S
13S
139
141
142
143
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) v||
C C n 1 L n 1 S
10 Ceremon|es
10.1 Cverv|ew
10.2 Capsu|e for Me|bourne CWG-2006
10.3 Cpen|ng and C|os|ng Ceremon|es for CG-2008, une
10.4 ueen's 8aton ke|ay (8k)
10.S 8k Launch Ceremony
10.6 Cpen|ng and C|os|ng Ceremon|es
11 Cater|ng
11.1 |ann|ng for Cater|ng Serv|ces
11.2 Contrast between CWG 2010 and Me|bourne 2006 and London
C|ymp|cs 2012
11.3 Award of Cater|ng for Games V|||age (CGV) Contract
11.4 Cater|ng at venues and non-venues
11.S I|oat|ng of three "new" kIs |n Iu|y 2010
11.6 Cater|ng at A|rport
10.4.1 ConsulLancy Servlces for C88
10.4.2 ueslgn and manufacLure of baLons for C88
10.3.1 LvenL ManagemenL Agency for C88 Launch aL London
10.3.2 32 member delegaLlon for C88 Launch Ceremony
10.3.3 Plrlng of AM lllms uk LLd and AM Cars & van Plre LLd
for varlous servlces
10.3.4 ClfL laques for C88 Launch Ceremony
10.3.3 CLher Mlscellaneous LxpendlLure lncurred by ShrlMahlndroo
10.6.1 uelays ln plannlng
10.6.2 Cverlapplng roles of agencles
10.6.3 LngagemenL and erformance of Shrl 8haraL 8ala
10.6.4 LngagemenL of SpecLak roducLlons (Mr. 8lc 8lrch)
10.6.3 LngagemenL of WlzcrafL as LvenL ManagemenL llrm
10.6.6 lnapproprlaLe LngagemenL of CLher ConsulLanLs
10.6.7 1heme song
10.6.8 Muslc Composer and ulrecLor
10.6.9 rocuremenL of accessorles/ speclal lLems
10.6.10 Cround proLecLlon and resLoraLlon of lC
11.3.1 Agency for operaLlng food sLalls for specLaLors
11.3.2 CaLerers for Lounges aL CompeLlLlon and 1ralnlng venues
11.3.3 CaLerer for supply and dlsLrlbuLlon of food packeLs
1SS
1S7
1S8
1S8
1S8
160
164
179
179
180
180
184
186
188
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) v|||
C C n 1 L n 1 S
12 1echno|ogy
12.1 Cverv|ew of 1echno|ogy kequ|rements
12.2 Management of 1echno|ogy funct|ona| Area
12.3 1|m|ng, Scor|ng and kesu|ts (1Sk) System
12.4 Scoreboard Structures
12.S Games Management Systems
12.6 Cff|c|a| Games 1|me Web|ste
12.7 1e|ecom, I1 and network|ng pro[ects
12.8 rov|s|on of I1 serv|ces - Cther contracts
13 Sports
13.1 Cverv|ew
13.2 rocurement of sports Lqu|pment
13.3 rocured equ|pment |y|ng unused
12.3.1 Cvervlew
12.3.2 uelays ln lannlng
12.3.3 8udgeLlng
12.3.4 Award of 1S8 ConLracL
12.3.3 erformance of 1S8
12.3.1 uelays ln lannlng
12.3.2 LllmlnaLlon of compeLlLlon
12.6.1 lannlng
12.6.2 lrregular Award of ConLracL Lo P1-Pungama
12.6.3 erformance of Lhe WebslLe
12.7.1 AppolnLmenL of 1ClL on nomlnaLlon basls
12.7.2 Supply of Audlo vldeo LqulpmenL for venues
12.7.3 rocuremenL of CompuLer Pardware
12.7.4 MalnLenance of lnvenLory, decommlsslonlng and legacy plannlng
12.8.1 Wl ll servlces ln Cames vlllage
12.8.2 rovlslon of daLa cards for medla
12.8.3 llxed llne broadband connecLlon for medla persons
12.8.4 l1v for Cames vlllage
13.2.1 Cvervlew
13.2.2 urchase of ALhleLlc LqulpmenL
13.2.3 urchase of 8oxlng LqulpmenL
13.2.4 urchase of shuLLlecocks
13.2.3 uelayed supply of equlpmenL for LesL evenLs and Lralnlng
189
191
191
191
197
197
200
201
202
20S
20S
20S
209
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) |x
C C n 1 L n 1 S
13.4.1 Cvervlew
13.4.2 Plrlng of Creg 8owman and CreaL 8lg LvenLs
13.4.3 LxorblLanL Plrlng of Audlo vldeo LqulpmenL
for SporLs presenLaLlon:
14.2.1 AppolnLmenL and 8emoval of Shrl Manlsh kumar as
dlrecLor, ress CperaLlon
14.2.2 Cames news Servlce
14.3.1 Craphlc ueslgn
14.3.2 SelecLlon of Cames Look rovlder"
14.3.3 LxecuLlon of Cames Look rovlder ConLracL
14.4.1 Cvervlew
14.4.2 Award of conLracL on ad hoc basls Lo selecLed 1v channels
14.4.3 non-uLlllzaLlon of vlk worLh 8s. 16.20 crore durlng Lhe Cames
14.4.4 LmpanelmenL of AdverLlslng Agency
14.4.3 non-uLlllsaLlon of audlo and vlsual commerclal valulng
8s. 1.27 crore
13.1.1 AppolnLmenL of Workforce consulLanL
13.1.2 ArblLrary and Ad hoc Workforce managemenL
13.2.1 Cvervlew
13.2.2 Plrlng of flaLs
13.2.3 8ooklng of hoLel accommodaLlon
13.4.1 ConLracL for Cleanlng servlces aL venues
13.4.2 Cleanlng servlces aL non CompeLlLlon venues
13.4 Sports resentat|on Ceremon|es
14 Games 8rand|ng
14.1 Cverv|ew
14.2 ress Cperat|ons
14.3 Image and Look
14.4 Commun|cat|ons Iunct|ona| Area
1S Workforce and Cther Support|ng Act|v|t|es of the
Crgan|s|ng Comm|ttee
1S.1 Workforce
1S.2 Accommodat|on
1S.3 Accred|tat|on
1S.4 C|ean|ng and waste management
1S.S Log|st|cs
1S.6 rocurement
1S.7 k|sk Management
209
21S
21S
216
218
221
223
224
230
231
231
233
233
234
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x
C C n 1 L n 1 S
13.7.1 lnsurance 8roker
13.7.2 lnsurance for C?C-2008, une
13.7.3 LxecuLlon of lnsurance ollcles
16.6.1 CosL LsLlmaLlon
16.6.2 Changes ln Scope of Work
16.6.3 Pandllng of uelays
16.6.4 non-levy and recovery of compensaLlon for delay ln
compleLlon of work
16.6.3 aymenL of escalaLlon ln cases of un[usLlfled LC1
16.6.6 Adequacy of penal provlslons for delays ln compleLlon of
pro[ecLs
16.11.1 Lxcess relmbursemenL of Servlce Lax
16.11.2 8elmbursemenL of Servlce 1ax
16.13.1 Memorandum of undersLandlng (Mou)
16.13.2 ueflclencles ln Mous
16.13.3 resenL oslLlon
17.1.1 venue Appralsal SLudles and venue 8rlefs by LkS
17.1.2 LngagemenL of CLS for CondlLlon Survey"
16 Common Issues |n Venue Deve|opment
16.1 Introduct|on
16.2 Des|gn Consu|tancy
16.3 1h|rd arty ua||ty Inspect|on Agency
16.4 Award of Contracts
16.S De|ays
16.6 Contract Management and Lxecut|on
16.7 Iust|f|cat|on of rates by |nc|us|on of add|t|ona| |abour cost due to
reduced t|me per|od for execut|on
16.8 Inadm|ss|b|e component of cost transportat|on of |abour from huts
to s|te and back |n cases where arrangements are not made for
|abour huts at an off-s|te |ocat|on
16.9 Labour wage esca|at|on payments under c|ause 10C of Genera|
Cond|t|ons of Contract
16.10 Def|c|enc|es |n DSk
16.11 Serv|ce 1ax |ssues
16.12 Absence of Works of Art
16.13 Legacy |an
17 Venues deve|oped by Centra| ub||c Works Department
17.1 Lngagement of Des|gn consu|tants
237
239
239
239
240
242
242
246
246
246
248
248
249
249
2S3
2SS
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x|
17.1.3 SelecLlon of ConsulLanL Lnglneerlng Servlces (l) LLd. (CLS) by
CWu as maln consulLanL ln all Lhe flve sLadla
17.3.1 SelecLlon of brands of SporLs Surfaces
17.3.2 Laylng of synLheLlc aLhleLlc Lracks surface
17.3.3 un[usLlfled lnflaLlon of raLes of vvl/vl and medla chalrs
procured for flve sLadla resulLlng ln exLra expendlLure of
8s. 3.66 crore
17.6.1 ConsLrucLlon of flxed Lenslle membrane rooflng over Lhe
seaLlng area
17.6.2 1unnel aL !nS
17.6.3 ConsLrucLlon of welghLllfLlng audlLorlum wlLh Lwo
Ller underground parklng
17.6.4 ConsulLancy Servlces for WAuA Lab and AdmlnlsLraLlve 8lock
17.6.3 ConsLrucLlon of 8oad, SLorm WaLer uralns and 8CC SeaLlng
1lers of Warm-up Area
17.6.6 ConsLrucLlon of Sub-SLaLlon bulldlng l, lll, lv and under
ground waLer Lanks & pump rooms
17.6.7 ConsLrucLlon of 8oundary Wall of SLadlum Complex
17.6.8 non uLlllzaLlon of compleLed PosLel/
Medla AccommodaLlon 8lock
17.7.1 lnLroducLlon
17.7.2 undue concesslons Lo AClL
17.7.3 Change of roof
17.7.4 uefecLs ln agreemenL
17.7.3 SpeclflcaLlons noL as per sporLlng requlremenLs
17.7.6 CverpaymenL of 8s. 0.39 crore
17.7.7 Lxcess procuremenL of sporLlng equlpmenL
17.7.8 Supply of lnferlor hoseplpes for flreflghLlng sysLem
17.7.9 LxecuLlon of poor quallLy work
17.7.10 LxecuLlon of defecLlve work
17.7.11 Lack of auLhenLlclLy of compleLlon of work
17.7.12 lnadequaLe horLlculLure work
17.8.1 lnLroducLlon
17.8.2 lndoor cycllng velodrome
17.2 Lack of organ|zed |n-house des|gn sk|||s |n CWD
17.3 rocurements through common tender|ng
17.4 Insta||at|on of DG Sets as permanent f|xture
17.S Insta||at|on of add|t|ona| US as para||e| redundancy
17.6 Iawahar|a| Nehru Stad|um Comp|ex
17.7 Dr. Shyama rasad Mukher[ee Sw|mm|ng oo| Comp|ex
17.8 Ind|ra Gandh| Stad|um Comp|ex
261
262
270
272
273
283
288
C C n 1 L n 1 S
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x||
C C n 1 L n 1 S
17.8.3 WresLllng SLadlum
17.8.4 CymnasLlcs sLadlum
17.8.3 PosLel/Medla cenLre, and roads, sLorm waLer draln
and boundary wall
17.8.6 LxLra lLems of 8s. 2.48 crore
17.9.1 lnLroducLlon
17.9.2 ulluLlon of bld crlLerla
17.9.3 8ellablllLy of Lhe bld amounLs
17.9.4 SelecLlon of Llgln LlecLronlcs LLd. for Supply, lnsLallaLlon,
1esLlng and Commlsslonlng (Sl1C) of A sysLems
17.9.3 ueflclencles ln conLracL execuLlon
17.9.6 non levy of compensaLlon
17.9.7 ConsLrucLlon of SpecLaLor gallery and anclllary sporLs
faclllLles aL lC-2
17.10.1 ConsulLancy works for kadarpur ShooLlng 8ange
17.10.2 LxecuLlon of works
17.10.3 non-compleLlon of Lralnlng faclllLles aL !harodakalan
for pollce sporLsperson
17.11.1 lnLroducLlon
17.11.2 Change of declslon form renovaLlon/up-gradaLlon
Lo reconsLrucLlon
17.11.3 non-recovery of exLra expendlLure of 8s.20.10 lakh lncurred
due Lo fallure of Lhe conLracLor Lo compleLe Lhe work
17.11.4 Award of work Lo lnellglble conLracLor
17.11.3 lrregular LreaLmenL of subsLlLuLed lLems as exLra lLems
17.11.6 uefecLs ln execuLlon of work
18.2.1 SelecLlon of eddle 1horp Melbourne
18.2.2 SelecLlon of ArchlLecL 8ureau-Croup CSA consorLlum
18.4.1 unrellable [usLlflcaLlon of raLes
18.4.2 lnsLallaLlon of maple wood floorlng ln Lhree venues
18.4.3 lnsLallaLlon of Mlld SLeel barrlcadlng aL SlSC
18.4.4 underuLlllsaLlon of Sewage 1reaLmenL lanL aL SlSC
17.9 Ma[or Dhyan Chand Stad|um
17.10 kadarpur Shoot|ng kange
17.11 Dr. karn| S|ngh Shoot|ng kange
18 Venues deve|oped by De|h| Deve|opment author|ty
18.1 Introduct|on
18.2 Se|ect|on of Consu|tant
18.3 Se|ect|on of Contractors
18.4 Lxecut|on of work
298
303
308
313
314
31S
317
318
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x|||
C C n 1 L n 1 S
18.4.3 lnsLallaLlon of uC seLs
18.4.6 AddlLlonal securlLy deposlL on speclallzed lLems
19.2.1 SelecLlon of 8a[a Aederl ConsulLanLs vL. LLd as
ArchlLecL consulLanL
19.2.2 Shlva[l SLadlum
19.2.3 1alkaLora lndoor sLadlum
19.3.1 ConsLrucLlon/upgradaLlon of 1hyagara[ SLadlum
19.3.2 ConsLrucLlon of ChhaLrasal SLadlum
19.3.3 ConsLrucLlon of 1ralnlng venue aL Ludlow CasLle
19.4.1 lnLroducLlon
19.4.2 8econverslon of 8ugby 7s fleld lnLo crlckeL fleld
19.4.3 uevlaLlon from Lhe Approved Scope of Work
19.4.4 LxecuLlon of Sub-sLandard Work
19.3.1 lnLroducLlon
19.3.2 uelay of sLarL of work of Lralnlng venues
19.3.3 Work sLarLed wlLhouL Lhe approval of uuAC and MCu
19.3.4 non uLlllzaLlon of 8ugby, ALhleLlc and WresLllng Lralnlng venues
19.6.1 lnLroducLlon
19.6.2 SelecLlon of ro[ecL ManagemenL consulLanL (MC)
19.6.3 SelecLlon of Clvll, lumblng and elecLrlcal conLracLors
19.6.4 AppolnLmenL of conLracLors for SLadlum Chalrs
19.6.3 ConducL of 1esL LvenLs and 1ournamenLs
20.3.1 LnvlronmenL and 8elaLed AspecLs
20.3.2 rovlslonlng for nolse barrlers
19 Venues deve|oped by other agenc|es
19.1 Introduct|on
19.2 Venues deve|oped by New De|h| Mun|c|pa| Counc||
19.3 Venues constructed by WD, GNC1D
19.4 Venues deve|oped by Iam|a M|||a Is|am|a Un|vers|ty
19.S Venues deve|oped by De|h| Un|vers|ty
19.6 Venue deve|opment by A|| Ind|a 1enn|s Assoc|at|on
20 Commonwea|th Games V|||age
20.1 Cverv|ew
20.2 Crgan|sat|on Structure
20.3 Se|ect|on of S|te for Games V|||age
20.4 Appo|ntment of I|nanc|a| Consu|tant for the Games V|||age ro[ect
321
322
324
330
336
338
340
343
34S
34S
347
3S0
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x|v
C C n 1 L n 1 S
20.3.1 ueclslon on consLrucLlon of flaLs ln mode
20.3.2 rocess of Lender and award
20.3.3 undue favour shown Lo Lmaar MCl ln pre-quallflcaLlon (C)
20.3.4 ShorL Llme allowed for blddlng afLer addendum
20.3.3 1he ballouL package
20.3.6 lA8 vlolaLlon
20.3.7 lllegal consLrucLlon
20.3.8 CLher posL award concesslons allowed Lo Lhe developer
20.3.9 CuallLy of consLrucLlon
20.3.10 unflnlshed Cames vlllage
20.6.1 lnLroducLlon
20.6.2 SelecLlon of Suresh Coyal and AssoclaLes as ueslgn ConsulLanL
20.6.3 erformance of ueslgn ConsulLanL
20.6.4 SelecLlon of SporLlna ayce lnfrasLrucLure vL. LLd. as ueveloper
20.6.3 CuallLy of works execuLed
20.6.6 rocuremenL of 8lo-LolleLs
20.7.1 SelecLlon of CL LlLmus LvenLs vL. LLd.
20.7.2 non-verlflcaLlon of deslgns, quallLy and quanLlLy
20.8.1 ConsLrucLlon of 1MCu WaLer 1reaLmenL lanL by u!8
20.8.2 ConsLrucLlon of a 1MCu Sewage 1reaLmenL lanL by u!8
20.8.3 Award of securlLy conLracL for W1 and S1 Lo lL&lS
20.8.4 rocuremenL of ulesel CeneraLor seLs
20.9.1 lncompleLe upgradaLlon of flaLs
20.9.2 lurnlshlng of llaLs by l1uC
20.9.3 LxLra expendlLure on alLernaLe accommodaLlon ln hoLels
21.2.1 Lack of overarchlng vlslon
21.3.1 ArblLrarlness ln selecLlon of ConsulLanLs
20.S kes|dent|a| Comp|ex
20.6 Non-res|dent|a| ermanent Structure - ract|ce Area
20.7 1emporary structure]over|ays
20.8 Cther |nfrastructura| fac|||t|es
20.9 A|ternate Accommodat|on at Vasantkun[
21 Streetscap|ng and 8eaut|f|cat|on of koads around CWG Venues
21.1 What |s Streetscap|ng?
21.2 |ann|ng for streetscap|ng]beaut|f|cat|on |n De|h|
21.3 Se|ect|on of consu|tant
3S1
372
377
379
383
38S
386
386
387
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xv
C C n 1 L n 1 S
21.4.1 AdopLlon of rlcher speclflcaLlons/ hlgher raLes/shorL-recovery
21.3.1 use of percenLage raLe Lender lnsLead of lLem raLe ln Wu
21.3.2 lrregularlLy ln award and evaluaLlon of Lender
21.3.3 ModlflcaLlon ln codlfled crlLerla
21.3.4 lrregular [usLlflcaLlon of Lhe quoLed raLes
21.9.1 AdopLlon of dlfferenL raLes ln Lhe esLlmaLes for ldenLlcal lLems
21.12.1 lannlng for SLreeL lurnlLure
21.12.2 1enderlng lrregularlLles
21.12.3 SLaLus
22.2.1 ueclslon on use of lmporLed lumlnarles
22.2.2 Manner of enrolmenL of lmporLed lumlnarles
22.3.1 Plgh cosL procuremenL of lmporLed lumlnarles
22.3.2 Plgh cosL procuremenL of uomesLlc lumlnarles ln Wu
22.4.1 CondlLlons ln LCl
22.4.2 ulvlslon of work ln Wu
22.4.3 lrregularlLles ln assesslng quallflcaLlon of a flrm ln Wu
22.3.1 ueflclency ln Lenderlng ln Wu
22.3.2 ueflclency ln award of work ln MCu
22.3.3 ueflclency ln Lenderlng/award of work ln nuMC
21.4 Cost est|mat|on for works
21.S 1ender|ng process
21.6 hys|ca| target v|s--v|s ach|evements
21.7 Contract management
21.8 Unwarranted engag|ng of 1h|rd arty ua||ty
Assurance]Contro| (1C)
21.9 nort|cu|ture Works
21.10 Unwarranted Cost|y L|ectr|ca| Iurn|sh|ng
21.11 Green|ng of games venues by us|ng potted p|ants
21.12 Street furn|ture |n the v|c|n|ty of Games venues
22 Upgradat|on of Street L|ght|ng of koads |n De|h|
22.1 Introduct|on
22.2 Use of |mported |um|nar|es
22.3 n|gh Cost of procurement of |um|nar|es
22.4 kestr|ct|ve and ant|-compet|t|ve cond|t|ons |n tender|ng
22.S Def|c|enc|es |n 1ender|ng and award of work
389
396
397
398
400
401
401
40S
406
411
412
413
416
417
419
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xv|
C C n 1 L n 1 S
22.6.1 uelays ln Wu
22.6.2 uelays ln MCu
22.6.3 uelays ln nuMC
23.4.1 SubsLlLuLlon of MS Angle wlLh Square Pollow SecLlon (SPS)
23.4.2 needless sancLlon of work for coverlng back face of
slgnages wlLh ACM as exLra lLem
23.4.3 WasLeful expendlLure on lncluslon of alumlnlum
channel/Lrlm as exLra lLem
23.4.4 lnadmlsslble paymenL for precasL bend, bolLs and
anchor plaLes as exLra lLem
24.3.1 AccepLance of blds quoLed on papers oLher Lhan
Lender documenLs
24.3.2 AccepLance of bld desplLe over-wrlLlngs/use of correcLlon fluld
24.3.3 lrregular lnvlLaLlon of percenLage raLe Lender
24.3.1 usage of sLeel noL conformlng Lo sLandards ln
8arapulla LlevaLed 8oad
24.3.2 usage of sLeel noL conformlng Lo Lhe sLandards
ln 8lng 8oad 8yepass
24.3.3 lle LesLs Lo conflrm quallLy noL carrled ouL
24.6.1 AdopLlon of revlsed prlce varlaLlon clause
24.6.2 lncorrecL measuremenL of underwelghL sLeel resulLlng
ln excess paymenL of 8s. 0.33 crore
22.6 De|ay |n pro[ect |n|t|at|on and comp|et|on
23 koad S|gnages
23.1 Introduct|on
23.2 kestr|ct|ve cond|t|ons |n tender|ng
23.3 More expens|ve des|gn and execut|on |n WD v|s--v|s NDMC
23.4 Lxecut|on of extra and subst|tuted |tem |ead|ng to cost esca|at|on
23.S Undue f|nanc|a| benef|t to contractor for barr|cad|ng work
23.6 Non |mpos|t|on of pena|ty
23.7 ayment for work not recorded
24 C|ty Infrastructure Deve|opment: koads and I|yovers
24.1 Introduct|on
24.2 Adopt|on of Contractor's rof|t and Cverhead Charges of 37.S per
cent for 8r|dge]I|yover ro[ects
24.3 Irregu|ar|t|es |n tender|ng procedure
24.4 Unwarranted |nc|us|on of |tems |n 8C of agreement
24.S Non comp||ance w|th qua||ty standards.
423
42S
426
427
429
429
433
433
433
43S
436
438
439
440
441
441
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xv||
C C n 1 L n 1 S
24.6.3 LxLra expendlLure of 8s. 1.13 crore due Lo posL Lender change
24.7.1 Loss of 8s 3.33 crore due Lo lncorrecL esLlmaLlon
24.7.2 Avoldable expendlLure of 8s. 1.36 crore due Lo
lnaccuraLe esLlmaLlon
24.8.1 Work cosLlng 8s. 31 crore wlLhouL Lenderlng
24.8.2 Work cosLlng 8s.11.63 crore wlLhouL Lenderlng
24.10.1 lnadequaLe defecL llablllLy provlslons and lack of
accounLablllLy ln Lhe consulLancy agreemenL
24.10.2 8ole of Lhlrd parLy quallLy assurance
26.1.1 lnLroducLlon
26.1.2 SelecLlon of 1eLra and Award of 1eLra ConLracL
26.1.3 lll-concelved declslon for legacy use of 1eLra
26.1.4 CLher legacy users
26.1.3 uLlllsaLlon of 1L18A durlng CWC-2010
26.2.1 lnLroducLlon
26.2.2 urchase of low floor buses
26.2.3 8educed LransporL servlces prlor Lo and durlng CWC-2010
26.2.4 lncompleLe lmplemenLaLlon of LLu pro[ecL
26.2.3 un[usLlfled expendlLure on consLrucLlon of 60 Llme
keeplng booLhs for Lhe CWC
26.2.6 Ad hoclsm ln meLhodology adopLed for consLrucLlon of
8us Cueque ShelLers (8CSs)
26.2.7 Award of varlous conLracLs Lo a ulM1S a non-governmenL
Company on nomlnaLlon basls
24.7 Loss due to |ncorrect est|mat|ons
24.8 Lxecut|on of works w|thout tender|ng
24.9 Infructuous expend|ture of ks. 8.6S crore on IC8s
24.10 Lngagement of Consu|tants |n WD
2S kenovat|on and kestorat|on of Connaught |ace
2S.1 Introduct|on
2S.2 Undue De|ays
2S.3 nuge expans|on |n scope of work
2S.4 ro[ect p|ann|ng
2S.S 1raff|c Management
2S.6 Contract Management
26 Cther |nfrastructure Deve|opment Act|v|t|es
26.1 Secured Commun|cat|on System (1L1kA)
26.2 1ransportat|on serv|ces for CWG-2010
442
443
444
44S
447
447
448
448
4S0
4S1
4S3
4SS
4S6
460
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xv|||
C C n 1 L n 1 S
26.2.8 ConsLrucLlon of bus parklng aL Ash ond opposlLe
Mlllennlum ark
26.2.9 CreaLlon of ark and 8lde faclllLy aL Safdar[ung AlrporL by nuMC
26.3.1 ower CeneraLlon
26.3.2 ower 1ransmlsslon
27.4.1 Cvervlew of venue up-gradaLlon
27.4.2 Plrlng of ConsulLanL
27.4.3 Maln work - renovaLlon and consLrucLlon of sporLs faclllLles
27.4.4 CuallLy of consLrucLlon
27.4.3 Landscaplng
27.4.6 Anclllary works
27.3.1 Cvervlew
27.3.2 Change of Land use and relaxaLlon of bulldlng norms
27.3.3 Cholce of consLrucLlng a 3 sLar hoLel over resldenLlal
accommodaLlon Lo be dlsposed off laLer
27.3.4 Cradual relaxaLlon of Lender condlLlons
27.3.3 osL bld negoLlaLlons and award of conLracL
27.3.6 uefaulLs ln paymenL of premlum
27.7.1 Ceneral
27.7.2 urchase of LlecLronlc vldeo screens/scoreboards and equlpmenL
27.7.3 CLher deflclencles noLlced ln procuremenLs
26.3 ower Serv|ces
27 Crgan|sat|on of Commonwea|th outh Games - 2008, une
27.1 Introduct|on
27.2 Governance and Cvers|ght Structure
27.3 8udget and Iund|ng attern
27.4 Venue Deve|opment
27.S Construct|on of a three star hote| on 8C1 bas|s for accommodat|ng
CG part|c|pants
27.6 Lessons from CG-2008, une for CWG-2010
27.7 urchase of L|ectron|c, Sports and other Lqu|pment
27.8 C|ty Infrastructure
27.9 urchase of Secur|ty Lqu|pment and Veh|c|es
28 Med|a and 8roadcast|ng Serv|ces
28.1 |ann|ng and 8udget|ng for Med|a and 8roadcast|ng Serv|ces
28.2 Cost|ng and Lst|mat|on for Med|a and 8roadcast|ng Serv|ces
28.3 8roadcast|ng Serv|ces by rasar 8harat|
469
471
472
473
474
474
478
48S
487
491
492
493
494
49S
496
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) x|x
C C n 1 L n 1 S
28.3.1 Cvervlew
28.3.2 CosL LsLlmaLlon
28.3.3 Award of ConLracL for roducLlon and Coverage
28.3.4 lrregularlLles ln ConLracL ManagemenL
28.3.3 ueflclencles ln C88 dellverables
28.3.1 lnordlnaLe delay ln upgradaLlon of hosLel faclllLles
28.3.2 8roadcasL faclllLy aL venues
28.3.3 lrregularlLles ln award of l8C conLracL
28.3.4 lndla 1rade romoLlon CrganlsaLlon
28.6.1 8ole of P8MC
28.6.2 Ml8's 8ole
28.6.3 CverslghL CommlLLee
29.3.1 ArblLrary lncluslon of experlence requlremenL of lmplemenLaLlon
of 60 nodes ln a slngle neLwork
29.3.2 8easonablllLy of cosLs for provldlng
LelecommunlcaLlon lnfrasLrucLure
29.3.3 Legacy plan
30.2.1 lannlng
30.2.2 8udgeLlng
30.3.1 rocuremenL rocess lollowed
30.3.2 LxorblLanL raLes charged
30.3.3 lLems noL used for Lhe Cames
28.4 Legacy of the Games
28.S Cther re|ated |nfrastructure
28.6 Cvers|ght and Mon|tor|ng arrangements
29 1e|ecommun|cat|ons Serv|ces for CWG-2010
29.1 Introduct|on
29.2 Se|ect|on of M1NL
29.3 A|rte|'s cons|derab|y better offer not brought to the not|ce of GCI
29.4 Cho|ce of techno|ogy
29.S Award of back to back contract by M1NL to nCL]C|sco
30 nea|th Serv|ces for CWG-2010
30.1 Cverv|ew
30.2 reparatory Act|v|t|es
30.3 rocurement Act|v|t|es
30.4 Contract Management Issues
30.S Iac|||t|es Deve|opment for nosp|ta|s
S06
S07
S09
S13
S14
S1S
S16
S16
S18
S21
S23
S23
S24
S28
S29
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xx
C C n 1 L n 1 S
30.3.1 1urnkey ro[ecL for esLabllshmenL of Lmergency 8lock ln
Lu 8ulldlng of C8 anL PosplLal
30.3.2 laclllLles aL AllMS
30.3.3 laclllLles aL 8ML PosplLal
30.6.1 Cvervlew
30.6.2 arLlal Commlsslonlng of SlC before CWC 2010
30.6.3 uelay ln consLrucLlon of SlC bulldlng
30.6.4 uelay ln lnsLallaLlon of equlpmenL
30.6.3 uelay ln appolnLmenL of sLaff for SlC
30.6.6 lrregularlLles ln award of work for Modular CperaLlon
1heaLre (MC1) and Medlcal Cas Manlfold SysLem (MCMS)
30.7.1 8ackground
30.7.2 1enderlng and award of concesslon for 130 ambulances
30.7.3 lalled LxecuLlon of ConLracL
30.7.4 non-fulflllmenL of requlremenL of 8LS ambulances
31.4.1 orLable Lxploslve ueLecLors worLh 8s. 38.33 crore wrongly
procured and noL uLlllzed
32.2.1 uelay ln selecLlon of core probables
32.2.2 erformance monlLorlng
32.2.3 uelay ln appolnLmenL of coaches/ supporLlng sLaff
32.2.4 ConducL of Lralnlng camps
32.2.3 non-operaLlonallsaLlon of web-based monlLorlng of
aLhleLes' performance
30.6 Sports In[ury Centre of Safdar[ung nosp|ta|
30.7 Ambu|ance Serv|ces
31 Integrated Secur|ty System (ISS) for CWG-2010
31.1 Introduct|on
31.2 Inf|ated est|mates of LCIL resu|ted |n exorb|tant prof|t of ks. 126.38
crore
31.3 Lxcess Cash Advance to LCIL of ks. 37 crore
31.4 rocurement of equ|pment |n excess of requ|rement
31.S kIID tags not ut|||zed
31.6 oor Legacy |ann|ng and Non-ut|||sat|on
31.7 Secur|ty arrangements dur|ng CWG-2010 at kadarpur Shoot|ng
kange
32 reparat|on of Ind|an 1eams for CWG-2010
32.1 Introduct|on
32.2 De|ay |n Se|ect|on of probab|es]staff
S30
S32
S39
S39
S40
S41
S42
S42
S43
S43
S4S
S47
S47
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) xx|
C C n 1 L n 1 S
32.4.1 rocuremenL on slngle Lender
32.4.2 ConLracL ManagemenL
32.4.3 unfrulLful expendlLure due Lo delayed procuremenL
of sporLs equlpmenL
32.4.4 non-procuremenL of sporLs maLerlal worLh 8s. 3.33 crore
32.4.3 lmproper plannlng and assessmenL of requlremenL
of sporLs maLerlal
32.4.6 SLock of 8s. 1.23 crore remalned unuLlllzed
32.3.1 lnadequaLe programs and semlnars for doplng
32.3.2 uelay ln provldlng medlcal lnsurance coverage Lo core probable
32.6.1 LsLabllshmenL of lnfrasLrucLure
32.6.2 rocuremenL of SporLs sclence equlpmenL
32.7.1 lnadequaLe monlLorlng
32.7.2 non-appolnLmenL of personnel ln CWC cell
32.9.1 ulverslon of funds for consLrucLlon of SAl PeadquarLer bulldlng
32.3 1est events
32.4 rocurement of sports equ|pment
32.S Cther Def|c|enc|es
32.6 De|ay |n estab||shment of |nfrastructure and procurement of re|ated
equ|pment
32.7 Mon|tor|ng by MAS]SAI
32.8 Legacy p|an for SAI stad|a
32.9 I|nanc|a| management
32.10 Cther po|nts of |nterest
33 Conc|us|on
Annexes
G|ossary
SS0
SS0
SS7
SS9
S61
S61
S62
S62
S63
S6S
73S
Preace
ur|ng the meet|ng o the Commonwea|th Games Federat|on (CGF)
Genera| Assemb|y |n November 2003, De|h| won the b|d to host the
DXlX Commonwea|th Games 2010. Hav|ng won the b|d, the host c|ty
contract was s|gned |n November 2003 between the CGF, lnd|an O|ymp|c
Assoc|at|on, Government o lnd|a (GOl) and the Government o Nat|ona| Cap|ta|
Terr|tory o De|h| (GNCTD) w|th the Organ|s|ng Comm|ttee (OC) (wh|ch was
const|tuted |ater), becom|ng a subsequent s|gnatory.
ln pursuance o th|s contract, the XlX Commonwea|th Games were
successu||y he|d |n De|h| rom 3 to 14 October 2010. A|| sport|ng events and
support|ng act|v|t|es were very smooth|y conducted. The country and |ts
management won acc|a|m or the successu| conduct o the games. The country
won a record hau| o 101 meda|s wh|ch was the h|ghest ever |n |nternat|ona| events
o th|s nature where|n we had part|c|pated ear||er. The open|ng and c|os|ng
ceremon|es were spectacu|ar.
Desp|te such phenomena| success o our ath|etes and sportspersons, the
events |ead|ng to the conduct o the games had attracted severe adverse
attent|on. There were reports o |rregu|ar|t|es |n the award o contracts, de|ays |n
construct|on o stad|a, games v|||age and re|ated |nrastructure, procurement o
equ|pments o |ner|or qua||ty or purchase o rout|ne |tems at exorb|tant|y h|gh
pr|ces. The Med|a as a|so other agenc|es, were voc|erous|y po|nt|ng |ngers at
Government and the OC on account o both de|ays |n the preparedness and a|so
excess|ve expend|ture. There were not on|y ve||ed a||egat|ons o ser|ous |eakage
o Government unds and avour|t|sm |n award o contracts, but a|so d|rect
|nd|ctments o o|c|a|s |n pos|t|ons |n the d|erent agenc|es entrusted w|th e|ther
the host|ng o the games or deve|op|ng stad|a and assoc|ated |nrastructure.
Such adverse pub||c|ty underm|ned the tremendous ach|evements o our sports
persons, and |ndeed, even the successu| conduct o the games.
lt may be reca||ed that towards |ate 2008 and ear|y 2009 ser|ous concerns
had been expressed about lnd|as preparedness or successu||y host|ng th|s
prest|g|ous event, |arge|y because o percept|ons about the construct|on o
venues and assoc|ated |nrastructure |agg|ng beh|nd schedu|e. The host|ng o
the Games was a mammoth exerc|se as the preparat|ons |nvo|ved at|east a dozen
d|erent agenc|es bes|des |oca| and parastata| bod|es ||ke the DDA, NDMC and
MCD. There were c|a|ms and counterc|a|ms |n d|erent quarters about the state o
preparedness.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 1
lt was under these c|rcumstances that the C&AG had dec|ded to conduct an
|ndependent study to assess the progress o pro|ects and preparedness o
d|erent agenc|es or organ|z|ng the Games and to |dent|y the s|gn||cant r|sks
that needed to be addressed. Th|s study wh|ch was not an aud|t |n the
convent|ona| sense, was meant to prov|de an a|d to the Adm|n|strat|on as
benchmarks or mon|tor|ng the progress o d|erent works and undertak|ng m|d
course correct|ons. Ater a study by a core team rom our o|ce, carr|ed out
between March and May 2009, a br|e Peport was prepared and subm|tted to
Government |n Ju|y 2009, 15 months beore the games were to be he|d. The study
Peport prov|ded deta||ed ev|dence o status o comp|et|on o pro|ects |n d|erent
phases as o Ju|y 2009, both documentary and p|ctor|a|. The report h|gh||ghted
the act that there was no scope or urther de|ays and s||ppages |n m||estones,
g|ven the con|rmed dead||ne o October, 2010 or ho|d|ng the games. The study
Peport a|so suggested that "|n v|ew o the comp|ex|ty and mu|t|p||c|ty o act|v|t|es
and organ|zat|ons and the progress t||| date, there |s need to reth|nk the
governance mode| or the games pro|ect as we|| as or s|m||ar mega-events |n the
uture". Cop|es o the Peport were prov|ded to a|| author|t|es engaged |n the
execut|on o the comp|ex games pro|ect.
ln v|ew o the concerns expressed by a|| sect|ons o soc|ety w|th regard to the
perce|ved |nadequac|es and shortcom|ngs |n d|erent pro|ects and assoc|ated
act|v|t|es w|th the stag|ng and host|ng o the games, the C&AG dec|ded to conduct
an externa| aud|t post comp|et|on o the games |n the shortest poss|b|e t|me, so
that the Par||ament and the country cou|d have the bene|t o an |ndependent and
ob|ect|ve assessment o the outcomes emanat|ng rom the expend|tures |ncurred.
Ord|nar||y such a mammoth exerc|se wou|d have taken severa| months. A
mu|t|p||c|ty o agenc|es were |nvo|ved and the act|v|t|es and pro|ects were
man|o|d. However, cons|der|ng the urgent need to keep a|| stakeho|ders
appr|sed o the outcome o the expend|ture |ncurred as a|so to prov|de an
assurance w|th regard to the manner o ach|ev|ng the outcomes, a ded|cated
team o aud|tors was put together to comprehens|ve|y aud|t a|| the agenc|es,
aspects and act|v|t|es |ead|ng to the conduct o the games. Th|s aud|t was
comprehens|ve |n nature, comb|n|ng both comp||ance and perormance re|ated
|ssues across mu|t|p|e M|n|str|es and Departments o GOl, GNCTD, Government
o Maharashtra, the OC and var|ous other bod|es w|th regard to the ro|e and
act|v|t|es |n respect o the Games pro|ects. Th|s Peport conta|ns the resu|ts o the
aud|t, cover|ng the per|od rom May 2003 when the |n|t|a| b|d was made or host|ng
the games to December 2010 when most o the Games re|ated pro|ects and
act|v|t|es were comp|eted. The exerc|se was mammoth, as our aud|t approach
o||ows a very met|cu|ous and c||n|ca| process |n wh|ch we have to cons|der a||
s|gn||cant deta||s and a|so prov|de opportun|ty to the aud|ted ent|ty to present
the|r responses and comments on the aud|t |nd|ngs.
8 L l A C L
Aud|t conducted by the organ|zat|on o the C&AG o||ows a very structured,
systemat|c and ob|ect|ve arch|tecture, to ensure that a ba|ance and ob|ect|ve
aud|t methodo|ogy |s brought to bear on the lnst|tut|on/Sector be|ng aud|ted and
cover|ng a|| nuances o that part|cu|ar organ|zat|on/act|v|ty. The aud|t
methodo|ogy |s as o||ows:
Beore actua| commencement o the |e|d aud|t, to ensure a comprehens|ve
coverage and cons|stency |n |nd|ngs, a deta||ed set o gu|de||nes/check||sts are
prepared by the department. An "entry conerence" |s usua||y he|d at an
appropr|ate|y sen|or |eve| w|th the aud|ted ent|ty to e||c|t the cooperat|on and
ass|stance requ|red or the conduct o the aud|t as a|so share the broad aud|t
approach and ob|ect|ves. Suggest|ons and concerns o the ent|ty ra|sed |n th|s
Conerence are taken |nto account to ensure a ho||st|c and ba|anced coverage.
Thereater |e|d aud|t commences wh|ch |nvo|ves scrut|ny o records and
documents, phys|ca| |nspect|on o s|tes (|nc|ud|ng co||ect|on o photograph|c
ev|dences) and, where cons|dered necessary, d|scuss|on w|th se|ected o|c|a|s
and persons. Aud|t requ|s|t|ons are |ssued, seek|ng records, |normat|on and
c|ar||cat|ons. Pre||m|nary aud|t observat|ons are commun|cated through aud|t
memos/quer|es (a|so termed as "ha| marg|ns") to the aud|ted ent|ty at
appropr|ate |eve|s, seek|ng the|r responses and comments, wh|ch are du|y
exam|ned and cons|dered. Ater exam|nat|on o the pre||m|nary aud|t
observat|ons and responses thereto, drat aud|t |nd|ngs are commun|cated,
e|ther through "Statements o Facts (SOFs) or drat Aud|t Peports" to the head o
the aud|ted ent|ty, seek|ng the|r wr|tten responses. Ex|t Conerences are a|so
he|d, usua||y at the |eve| o the head o the aud|ted ent|ty, prov|d|ng an opportun|ty
to exp|a|n the|r pos|t|on v|s--v|s the aud|t observat|ons and urn|sh add|t|ona|
|normat|on/c|ar||cat|ons. lt |s on|y ater rece|pt o rep||es to the SOFs/drat Aud|t
Peports that Aud|t |na||ses |ts |nd|ngs and prepares the Aud|t Peport or
subm|ss|on to the Pres|dent or tab||ng |n Par||ament.
Wh||st |t has been ot commented that externa| aud|t |s a postmortem and
conducted qu|te oten we|| ater the event, the |ssue needs to be v|ewed |n |ts r|ght
perspect|ve. Externa| aud|t o the k|nd conducted by the C&AG |s, |ndeed
conducted post the event. lt |s thus d|st|nct rom |nterna| aud|t, wh|ch, by de|n|t|on
|s concurrent. The e|cacy and t|me||ness o our Peport |s oten dependent on the
promptness d|sp|ayed by the aud|ted ent|t|es at d|erent stages |n mak|ng
ava||ab|e the ||es and records, g|v|ng responses to aud|t memos and SOFs, as
a|so |n the ho|d|ng o the ex|t conerences. lnvar|ab|y, agenc|es seek add|t|ona|
t|me to respond at every stage. ln the |tness o th|ngs and to prov|de an amp|e
opportun|ty or them to present the|r arguments, reasonab|e extens|on o t|me |s
genera||y prov|ded.
8 L l A C L
ln the conduct o the extant aud|t o CWG 2010, the aud|t teams d|d a
commendab|e |ob |n comp|et|ng the |e|d aud|t, |nvo|v|ng scrut|ny o vo|um|nous
documents w|th|n a cha||eng|ng t|me schedu|e o 90 days ass|gned to them.
However, the preparat|on and |na||zat|on o the Peport was tota||y dependent on
the t|me taken by the d|erent ent|t|es to respond to the requests or ||es,
documents and records, and the t|me taken to make ava||ab|e comp|ete and
deta||ed responses to Aud|t at the d|erent stages when the aud|t |nd|ngs were
shared w|th the aud|ted ent|t|es. ln the preparat|on o these aud|t |nd|ngs, a||
agenc|es aud|ted have been g|ven adequate opportun|ty to prov|de c|ar||cat|on or
state the|r s|de o the acts. Pequests or add|t|ona| t|me were a|so ||bera||y granted
to ensure that no author|ty or |nd|v|dua| ee|s wronged that he d|d not have an
adequate opportun|ty to represent h|s acts. Such grant|ng o t|me cou|d have |ed
the de|ay o a ew weeks |n the presentat|on o th|s Peport, but we be||eve that a a|r
opportun|ty must be g|ven to a|| those on whose some observat|ons are ||ke|y to be
made. Need|ess to state, the |na| |nd|ngs and |ts onus |s ent|re|y that o th|s
Department. Aud|t |s a|so constra|ned by the act that |ts Peport can be brought
|nto the pub||c doma|n, on|y ater be|ng tab|ed |n both Houses o Par||ament.
lt |s |n the nature and context o the aoresa|d |ssues that th|s Aud|t Peport
has been prepared. lt |s hoped that a|| stakeho|ders w||| perce|ve |ts ba|anced
report|ng and comprehens|ve coverage o the mammoth exerc|se |ead|ng to the
conduct and stag|ng o the CWG-2010. Wh||st the Peport |s a|r|y comprehens|ve,
|t ocuses on |ssues re|at|ng to the overa|| perspect|ve o the organ|zat|on and
management o the Games Pro|ect. Other |ssues and concerns wh|ch ocus on
agency spec||c aspects wou|d be reported separate|y through other Aud|t and
lnspect|on Peports, depend|ng upon the|r mater|a||ty and s|gn||cance.
Some o the pro|ects, works and contracts are yet to be comp|eted.
Consequent|y |na| b|||s are yet to be rece|ved and payments made. These
payments are ||ke|y to have a s|gn||cant |mpact on the |na| cost o the Games.
Aud|t wou|d cover the same |n subsequent aud|ts.
Th|s Aud|t Peport or the year end|ng March 2011 has been prepared or
subm|ss|on to the Pres|dent under Art|c|e 151 o the Const|tut|on.
8 L l A C L
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) S
Execut|ve Summary
8ackground
The XlX Commonwea|th Games (CWG-2010) were successu||y hosted |n
De|h| rom 3 to 14 October 2010. These Games represented the |argest ever mu|t|-
sport event he|d |n lnd|a. 4336 ath|etes and 2115 o|c|a|s represent|ng 71
Commonwea|th Games Assoc|at|ons (CGAs) part|c|pated |n compet|t|ve events
|n 17 sports d|sc|p||nes, bes|des events |n 4 para sports d|sc|p||nes. Wh||e
Austra||a was the most successu| team at CWG-2010, lnd|a gave |ts best ever
perormance |n the Commonwea|th Games by secur|ng second pos|t|on |n the
meda| ta||y w|th 38 go|d, 27 s||ver, and 36 bronze meda|s.
The r|ght to host CWG-2010 was awarded |n November 2003 to De|h| on the
bas|s o the May 2003 b|d o the lnd|an O|ymp|c Assoc|at|on (lOA), and the
guarantee o Government o lnd|a (Gol), |n con|unct|on w|th the Government o the
Nat|ona| Cap|ta| Terr|tory o De|h| (GNCTD) to bear the |nanc|a| ||ab|||ty or host|ng
the Games, |nc|ud|ng underwr|t|ng any shorta|| between revenues and
expend|ture.
ln Ju|y 2009, we presented a Study Peport to the Government o lnd|a on
preparedness or CWG-2010. Th|s Study Peport was |ntended to prov|de an a|d to
the Execut|ve |n mon|tor|ng and benchmark|ng progress towards prepar|ng the
|nrastructure and stag|ng the Games, and mak|ng m|d-course correct|ons.
The current aud|t o CWG-2010 was comprehens|ve |n nature, and bu||ds on
the |nd|ngs and recommendat|ons o our Study Peport on preparedness or the
Games. lt covers the per|od rom May 2003 (when the b|d was subm|tted) to
December 2010 ater the conc|us|on o the Games, as we|| as a mu|t|p||c|ty o
act|v|t|es not |ust the host|ng o the Games per se, but a|so the deve|opment o
sport|ng venues, the Games v|||age, c|ty |nrastructure pro|ects and other
assoc|ated/ support|ng act|v|t|es executed by a d|verse set o agenc|es.
We conducted our |e|d work between August and December 2010, he|d
entry and ex|t conerences w|th the concerned agenc|es, and a|so |ssued deta||ed
Statements o Facts (SOFs) to the agenc|es, seek|ng the|r responses and
comments, wh|ch have been appropr|ate|y cons|dered |n th|s report. Our ma|n
|nd|ngs are summar|sed |n the o||ow|ng paragraphs. Deta||s are ava||ab|e |n the
act|v|ty- spec||c chapters.
Governance
The comm|tment o Gol, |n con|unct|on w|th GNCTD, |n September 2003 to
become part|es to the Host C|ty Contract (HCC) and undertak|ng to bear the
|nanc|a| ||ab|||ty or host|ng o the Games, |nc|ud|ng underwr|t|ng any shorta||
between revenue and expend|ture, was cr|t|ca| to the success o the lOA b|d or
De|h| to host CWG-2010. The compet|ng b|d rom Ham||ton, Canada d|d not
|nvo|ve de|c|t guarantees rom the Canad|an Federa| and Prov|nc|a|
Governments, nor d|d they agree to be part|es to the HCC. ln the case o lnd|a
thus, the Games became the property o the nat|on, rather than mere|y that o the
lOA. Th|s was, however, |nadequate|y re|ected |n the subsequent const|tut|on o
the Organ|s|ng Comm|ttee (OC).
ln our op|n|on, the un|que cha||enge o manag|ng and mon|tor|ng the
act|v|t|es o mu|t|p|e agenc|es or de||ver|ng the Games Pro|ect shou|d have been
met by entrust|ng |ts stewardsh|p to a s|ng|e po|nt o author|ty and accountab|||ty,
w|th adequate mandate to ensure a|| de||verab|es |n t|me, to cost, and to spec||ed
qua||ty standards. Further, |n v|ew o the Government guarantee or meet|ng the
cost o the Games, |t was essent|a| or such stewardsh|p to be u||y under
Government contro|. However, th|s mode| o management or |nanc|a| contro| was
not o||owed or the Games Pro|ect.
A|though the b|d document o May 2003 env|saged the OC as a
Government-owned registered society, w|th the Cha|rman o the OC Execut|ve
Board (EB) be|ng a government appo|ntee, and the lOA Pres|dent be|ng on|y
the EB v|ce-Cha|rman, the OC was u|t|mate|y set up |n February 2005 as a
non-Government registered society, w|th the lOA Pres|dent, Shr| Suresh
Ka|mad| as the Cha|rman o the OC EB. Th|s change was orchestrated through a
sequence o events, commenc|ng w|th a document t|t|ed as an "updated b|d" o
December 2003 (wh|ch had no |ega| sanct|ty or re|evance), |nd|cat|ng a changed
structure. Th|s "updated b|d" dated December 2003 suraced on|y |n September
2004, v|z. 16 months ater the lOA made |ts b|d and 10 months ater that b|d had
a|ready been dec|ared successu|! Desp|te ser|ous ob|ect|ons rom the erstwh||e
M|n|ster, YAS, |ate Shr| Sun|| Dutt, Shr| Ka|mad| was appo|nted as the OC
Cha|rman, based on a PMO recommendat|on o December 2004. Th|s dec|s|on
ac|||tated the convers|on o the or|g|na||y env|saged Government-owned OC |nto
a body outs|de Governmenta| contro|, w|thout commensurate accountab|||ty to
Government and concom|tant contro|s to ensure propr|ety and transparency
(desp|te u|| |nanc|a| guarantee and und|ng rom Government). Attempts |n 2007
by Shr| Man| Shankar A|yar, M|n|ster, YAS and |ate Shr| SK Arora, Secretary, M|n|stry
o Youth Aa|rs and Sports (MYAS) w|th the PMO, the Group o M|n|sters (GoM)
and the Cab|net Secretar|at, h|gh||ght|ng the |neect|ve pos|t|on o MYAS |n
LxLCu1lvL SuMMA8?
exerc|s|ng contro| over the OC, met w|th strong res|stance rom the Cha|rman, OC,
and were hence rendered unru|tu|.
ln the absence o a s|ng|e po|nt o author|ty and accountab|||ty and the |ack o
a c|ear governance structure, a mu|t|p||c|ty o co-ord|nat|on comm|ttees were
created, d|sbanded, and reconst|tuted at d|erent po|nts o t|me. Th|s approach
was not method|ca|, cons|stent and eect|ve, and a|so |ed to comp|ete d|us|on o
accountab|||ty. Th|s was un||ke the structure or the Me|bourne CWG-2006, where
the v|ctor|an Government oversaw the p|ann|ng and de||very o the Games
through a spec|a||y ormed Cab|net Comm|ttee. The M|n|ster or Commonwea|th
Games was spec||ca||y empowered and made respons|b|e under the
Commonwea|th Games Arrangements Act 2001.
A|though there were some changes |n the governance structure o the OC
rom October 2009 onwards, these act|ons were |arge|y |n the nature o
emergency |re-|ght|ng measures. Poss|b|y, the on|y eect|ve steps taken were
around August 2010 wh|ch eventua||y ensured the actua| conduct o the Games.
Ear|y and dec|s|ve act|on on the governance structure or the Games o the k|nd
w|tnessed |n August 2010, w|th a s|ng|e po|nt o author|ty and accountab|||ty, cou|d
have made the Games de||very process |ess pa|nu|, more stream||ned and
accountab|e.
(Chapter 4)
There was a seven-year w|ndow rom the award o CWG-2010 to De|h| |n
November 2003 to |ts host|ng |n October 2010, wh|ch was not appropr|ate|y
ut|||sed. The t|me w|ndow rom November 2003 to m|d-2006, wh|ch cou|d have
been eect|ve|y used or p|ann|ng, c|earances and approva|s, was wasted. The
OC |tse| was reg|stered on|y |n February 2005, wh||e EKS was appo|nted by the
OC as the consu|tant or preparat|on o venue br|es and s|te p|ans on|y |n Ju|y
2006. Th|s |ed to cascad|ng de|ays |n a|| subsequent act|v|t|es, s|nce the return
br|es, concept des|gns and deta||ed des|gns and draw|ngs or venues cou|d be
prepared on|y thereater. Even ater that, spec||cat|ons and des|gns or venues
cont|nued to be rev|sed by the OC and lnternat|ona| Sport|ng Federat|ons t||| |ate
stages.
Overa|| p|ann|ng or the Games, |nc|ud|ng the Genera| Organ|sat|on P|an,
the Games Master Schedu|e, and the operat|ona| p|ans or d|erent Funct|ona|
Areas, was a|so substant|a||y de|ayed. So was the deta||ed p|ann|ng or state-o-
the art c|ty |nrastructure |n t|me or CWG-2010.
(Chapter 5)
|ann|ng
LxLCu1lvL SuMMA8?
I|nanc|a| Management
Interna| Contro|s and Dec|s|on Mak|ng w|th|n the CC
Even wh||e approv|ng subm|ss|on o the lOA b|d |n May 2003, and prov|d|ng
|nanc|a| ||ab|||ty and de|c|t guarantees |n September 2003, Gol d|d not have a
c|ear and rea||st|c assessment o the est|mated cost o host|ng the Games. The
lOA b|d o May 2003 est|mated an a||-|nc|us|ve cost o |ust Ps. 1200 crore (ater
sett|ng o operat|ona| expenses aga|nst est|mated revenues rom host|ng the
Games). By contrast, the overa|| budget est|mate or CWG-2010 or Gol and
GNCTD (|nc|ud|ng MCD, NDMC and other agenc|es) as o October 2010 was Ps.
18,532 crore. Th|s exc|udes |nvestments by other agenc|es (such as DMPC and
AAl/ DlAL) on a|||ed |nrastructure.
The h|gh|y conservat|ve and unrea||st|c s|ze o the or|g|na| budget env|saged
|n the May 2003 b|d |ed to rev|s|ons o est|mates at very short |nterva|s even upto
September 2010. Th|s ev|denced a p|ecemea| approach or cons|derat|on/
approva| o |nd|v|dua| cost e|ements. The other ma|or reason or |ncreased costs/
est|mates was de|ays at mu|t|p|e stages (|nc|ud|ng de|ays |n grant o approva|s by
Gol), resu|t|ng |n bunch|ng o act|v|t|es towards the end and consequent|a|
|ncrease |n cost.
The absence o a s|ng|e po|nt o author|ty and accountab|||ty or the Games
was compounded by the ear|y d|sbandment o the F|nance Sub-Comm|ttee o the
GoM, wh|ch wou|d have acted as a spec|a| EFC or CWG-re|ated proposa|s. Th|s
contr|buted to the p|ecemea| approach towards cost est|mat|on and budget
approva|s.
We a|so ound numerous |nstances o de|ays |n grant o budgetary and
|nanc|a| approva|s by the Gol. Wh||e we acknow|edge that careu| scrut|ny o
proposa|s |s requ|red to ensure due d|||gence beore approva|s and comm|tment
o Gol unds, process|ng and approva|s shou|d have demonstrated a greater
sense o urgency (|n v|ew o the cons|derab|e de|ays that had a|ready taken p|ace).
These de|ays a|so contr|buted to the cascad|ng o t|me at the execut|on stage.
(Chapter 6)
The |nterna| contro| env|ronment and dec|s|on mak|ng structures w|th|n the
OC were h|gh|y |nadequate. The state o documentat|on |n the OC was so
|nadequate that we are unab|e to der|ve assurance as to e|ther the authent|c|ty or
the comp|eteness o records.
LxLCu1lvL SuMMA8?
Contract management by the OC was |rregu|ar and de|c|ent. The state o
contract documentat|on |s such that we are ne|ther sure o the ent|re sequence o
events |ead|ng to award o contracts, nor about the tota| number o contracts and
work orders awarded. We were a|so unab|e to ascerta|n comp|ete contract-w|se
payments and outstand|ng ||ab|||t|es.
The process|ng o certa|n sens|t|ve contracts/ cases was a||ocated |n an
arb|trary and ad hoc manner to certa|n o|c|a|s who had no ||nkages w|th the
concerned Funct|ona| Area. Such act|on d||uted the process o due d|||gence and
scrut|ny. There was enormous bunch|ng o h|gh va|ue contracts |n 2010,
part|cu|ar|y |n the second and th|rd quarters. The argument o urgency was used to
obv|ate the regu|ar process o tender|ng or award o contracts. We ound
numerous |nstances o s|ng|e tender|ng, award on "nom|nat|on bas|s", award o
contracts to |ne||g|b|e vendors, |ncons|stent use o restr|ct|ve Pre-Qua|||cat|on
(PQ) cond|t|ons to ||m|t compet|t|on to avour part|cu|ar vendors, |nadequate t|me
or b|dd|ng, cance||at|on and re-tender|ng o contracts, and |nexp||cab|e de|ays |n
contract |na||zat|on, a|| o wh|ch ser|ous|y comprom|sed transparency and
economy. Further, there were numerous de|c|enc|es |n the appo|ntment o
externa| consu|tants and adv|sors and management o the mu|t|p||c|ty o contracts
thereo.
We a|so ound that the OC-lOA re|at|onsh|p was b|urred, ac|||tat|ng grant o
|rregu|ar bene|ts to lOA at the expense o the OC/ Gol through var|ous means.
(Chapter 7)
At a|| po|nts o t|me, the OC cons|stent|y presented stag|ng o the Games as
revenue neutra|, | not revenue surp|us. Th|s argument was used to |ust|y the
|ndependence and |nanc|a| autonomy o the OC. However, th|s prem|se o
revenue neutra||ty was ser|ous|y |awed, as |t was never supported by robust and
appropr|ate|y va||dated revenue pro|ect|ons. ln act, between March 2007 and Ju|y
2008, the revenue pro|ect|ons skyrocketed rom Ps. 900 crore to Ps. 1780 crore. ln
our v|ew, th|s |ncrease |n revenue pro|ect|ons (ma|n|y on account o |n|ated
pro|ect|ons o sponsorsh|p revenue and donat|ons) was made w|th the so|e
ob|ect|ve o keep|ng pace w|th the vast|y |ncreased operat|ng expend|ture
est|mates, so as to ma|nta|n the c|a|m o revenue neutra||ty. Both MYAS and MoF
a||ed to exerc|se necessary due d|||gence, and d|d not ser|ous|y cha||enge the
OCs c|a|m o revenue neutra||ty. ln rea||ty, the tota| comm|tted revenues amounted
to |ust Ps. 682.06 crore, and the net revenue actua||y rea||sed by OC (ater
deduct|ng revenue generat|on costs) was |ust Ps. 173.96 crore.
kevenue Generat|on by CC
LxLCu1lvL SuMMA8?
The OCs perormance |n revenue generat|on was cons|stent|y poor across
a|| ma|or revenue streams, e.g.
lt cou|d generate comm|tted sponsorsh|p revenue o |ust Ps. 375.16 crore
(aga|nst the target o Ps. 960 crore), out o wh|ch near|y 67 per cent was rom
Government agenc|es/ PSs. No revenue has been rece|ved on account o
merchand|s|ng and ||cens|ng r|ghts. The engagement o SMAM as the
consu|tant or sponsorsh|p and merchand|s|ng/ ||cens|ng r|ghts was |awed,
as |t was based on a s|ng|e |nanc|a| b|d. lt was a|so undu|y |n|uenced by the
recommendat|on o the CGF CEO, and p|aced undue emphas|s on
|nternat|ona| exper|ence (|gnor|ng the vast potent|a| o the lnd|an market).
OC chose not to der|ve |essons rom the poor perormance o SMAM |ead|ng
upto the Games, and term|nated |ts contract on|y |n August 2010.
The commerc|a| exp|o|tat|on o nat|ona| and |nternat|ona| broadcast|ng
r|ghts was bad|y managed. The agreement or nat|ona| broadcast|ng r|ghts
between OC and Prasar Bharat| was s|gned on|y on 23 September 2010,
resu|t|ng |n generat|on o |ust Ps. 24.70 crore o revenues or the OC. W|th
regard to |nternat|ona| broadcast|ng r|ghts, OC cou|d s|gn agreements or
on|y Ps. 213.46 crore, o wh|ch on|y Ps. 191.40 crore has been rece|ved.
OCs perormance on t|cket|ng was a|so de|c|ent. Gross t|cket|ng revenue o
|ust Ps. 39.17 crore was rea||zed (aga|nst the target o Ps. 100 crore). The
appo|ntment o the t|cket|ng consu|tant and the t|cket|ng agency was
de|ayed enormous|y, and sa|e o t|ckets commenced on|y |n September
2010. The generous d|str|but|on o h|gh va|ue comp||mentary t|ckets was
excess|ve (near|y thr|ce that o ear||er CW Games at Manchester and
Me|bourne). A|so, OC adopted a w|de range o t|cket pr|c|ng, contrary to the
recommendat|ons o consu|tants, wh|ch contr|buted to |ow t|cket sa|es
(part|cu|ar|y o h|gh denom|nat|ons).
OC |nc|uded a revenue target o Ps. 300 crore |n Ju|y 2008 rom donat|ons/
ra|e, aga|nst wh|ch |t co||ected a pa|try sum o Ps. 0.99 crore.
(Chapter 8)
Event Know|edge Serv|ces (EKS) was awarded |ve consu|tancy contracts
re|at|ng to venue appra|sa|/ br|es, pro|ect mon|tor|ng, games p|ann|ng and
workorce (awarded to an EKS consort|um) dur|ng 2005-08. Three o these
contracts were awarded on nom|nat|on bas|s, ac|||tated by strong patronage rom
the CGF (w|th wh|ch EKS had a c|ose ||nk). Tender|ng cond|t|ons or the other two
Games |ann|ng Consu|tancy and Cver|ays

LxLCu1lvL SuMMA8?
contracts were ta||ored to su|t EKS. We are a|so unab|e to ver|y the need or th|s
mu|t|p||c|ty o contracts, and the poss|b|e over|ap between the de||verab|es rom
d|erent contracts.
P|ann|ng and scop|ng or venue over|ays was cr|t|ca||y de|ayed by the OC
and comp|eted on|y |n June 2009, ater wh|ch the respons|b|||ty or procurement o
over|ays |tems was transerred rom the venue owners to the OC. The procurement
process o||owed or award o venue over|ays contracts was h|gh|y |rregu|ar. OC
|nexp||cab|y sh|ted rom an |tem-w|se bas|s (o||owed |nternat|ona||y) to a venue-
c|uster approach, based on geograph|ca| |ocat|ons. Th|s c|uster-based approach,
a|ong w|th ta||ored e||g|b|||ty cr|ter|a, was used to d|scourage compet|t|on by
restr|ct|ng the number o vendors. These cr|ter|a were then se|ect|ve|y and
|ncons|stent|y app||ed to remove compet|tors, |eav|ng a |e|d o |ust our
"techn|ca||y qua|||ed" consort|ums ESAJv-D-Art-lndo, P|co-Deepa||, Nuss|| and
GL-Meroorm. The commerc|a| b|ds o a|| our vendors were the |owest exact|y or
those c|usters, wh|ch were the|r |rst and second preerences. Such co|nc|dence
po|nts to co||us|on and the poss|b|||ty o carte|s among the vendors.
The over|ays contracts were s|gned at exorb|tant rates, caus|ng huge
|nanc|a| |oss to the OC (and the Gol). A|though we cannot u||y quant|y the true
tota| |oss (based on ava||ab|e records), we have, however, come up w|th |nd|cators
o the |nanc|a| |oss |n d|erent ways (by |nter se compar|son o |tem-w|se rates
across c|usters and vendors as we|| as rates dec|ared to Customs).
(Chapter 9)
The ma|n ceremon|a| events o CWG-2010 were the Queens Baton Pe|ay
(QBP), and the open|ng and c|os|ng ceremon|es (wh|ch were to be s|gnature
events showcas|ng lnd|an cu|ture and her|tage). We note that the ceremon|es
were w|de|y apprec|ated, |n part|cu|ar the open|ng ceremony was a spectacu|ar
success. However, we ound numerous |rregu|ar|t|es |n the appo|ntment o
contractors/ vendors or var|ous ceremon|es.
Pegard|ng the QBP Launch Ceremony on 29 October 2009, we ound an
|nexp||cab|e reduct|on |n the scope o work or JMW (the event management
agency or the QBP Launch) |n October 2009 (w|th an |ncrease |n cost). On the
other hand, the OC made h|gh|y suspect payments o 386,237 to two ||tt|e known
ent|t|es AM F||ms K Ltd and AM Car and van H|re Ltd or d|verse and
unconnected serv|ces or the QBP Launch ceremony. The ass|gnment o work
and payments thereor were h|gh|y quest|onab|e, assoc|ated approva|s and
c|earances were obta|ned and payments made w|th uncommon haste. Large
Ceremon|es
LxLCu1lvL SuMMA8?
amounts were a|so pa|d |n cash, perhaps to avo|d |eav|ng a transact|on tra||. The
ro|e o Shr| TS Darbar| and Shr| San|ay Mah|ndroo, who were unre|ated to OCs
Ceremony Funct|ona| Area, |n the QBP Launch Ceremony |s a|so quest|onab|e.
We ound that p|ann|ng or the open|ng and c|os|ng ceremon|es was
|nord|nate|y de|ayed. Further, a mu|t|p||c|ty o agenc|es was engaged Shr| Bharat
Ba|a as Creat|ve D|rector/ Creat|ve Consu|tant, Spectak Product|ons (Shr| P|c
B|rch) as lnternat|ona| Consu|tant, W|zcrat as the Event Management F|rm and 17
other consu|tants. There was cons|derab|e over|ap between the ro|es and
respons|b|||t|es o these mu|t|p|e agenc|es. We a|so ound that Spectak
Product|ons and W|zcrat had t|ed up w|th other experts we|| |n advance o the
award o the contracts. The engagement o the add|t|ona| consu|tants (or at |east
Ps. 6.12 crore) at OCs cost amounted to a c|ear |nanc|a| bene|t to W|zcrat.
There were a|so ma|or |rregu|ar|t|es |n procurement o accessor|es/ spec|a|
|tems. The consu|tant or the band stand, Mr. Mark F|sher, got h|s u|| ee o S$
514,000, even though the |dea o the band stand was abandoned. Mr. F|sher then
presented a des|gn or an aerostat, wh|ch was accepted. The act that Spectak
Product|ons and the aerostat vendor were part o the same group was concea|ed.
There were a|so ser|ous |rregu|ar|t|es |n the techn|ca| eva|uat|on and award o the
||ght|ng/ search||ght contract, as we|| as |n the award o the contract or v|deo
content.
Contracts or Ps. 16.49 crore or art d|rect|on and props or the open|ng and
c|os|ng ceremon|es were |rregu|ar|y awarded to B|ue Lotus Product|ons, w|thout
even hav|ng an approved ||st o props wh|ch were actua||y requ|red. Huge
quant|t|es o props rema|ned unut|||zed. Some props were not even rece|ved.
Many o these props were exorb|tant|y pr|ced.
(Chapter 10)
OC was respons|b|e or prov|d|ng cater|ng serv|ces at the Games v|||age
and venues or ath|etes and team o|c|a|s, CGF/ CGA o|c|a|s, vlPs, techn|ca|
o|c|a|s and med|a persons, vo|unteers, workorce, contractors and spectators.
We ound |nexp||cab|e de|ays |n p|ann|ng or cater|ng serv|ces, as we|| as |n the
execut|on o var|ous cater|ng-re|ated act|v|t|es.
There were numerous |rregu|ar|t|es |n the award o the Games v|||age
cater|ng contract. The process o award took 14 months, w|th two rounds o
tender|ng, both on s|ng|e |nanc|a| b|ds. The cance||at|on o the |rst tender by the
Cha|rman, OC was not on|y aga|nst the recommendat|ons o OC o|c|a|s, but was
Cater|ng
LxLCu1lvL SuMMA8?
a|so done ater open|ng the s|ng|e |nanc|a| b|d on the Cha|rmans verba| orders.
Th|s dec|s|on to re-tender weakened the OCs negot|at|ng pos|t|on v|s-a-v|s the
vendors and resu|ted |n rant|c act|v|ty upto June 2010 or conc|us|on o our
separate contracts/ agreements.
The process or award o venue cater|ng contracts was a|so |awed, w|th
unusua| de|ays. Th|s w|tnessed one round o cance||at|on o tenders and |oat|ng
o three new PFPs as |ate as Ju|y 2010, w|th comprom|ses on transparency, qua||ty
and economy (due to |nsu|c|ent compet|t|on). Consequent|y, there were
numerous comp|a|nts about the venue cater|ng serv|ces, resu|t|ng |n emergency
arrangements dur|ng the Games T|me.
(Chapter 11)
Successu| organ|sat|on o the Games requ|red severa| |ntegrated techn|ca|
so|ut|ons, |nc|ud|ng a T|m|ng, Scor|ng and Pesu|ts (TSP) system, a Games
Management System (GMS), and a Games T|me Webs|te.
We ound that p|ann|ng or TSP was bad|y de|ayed and |n|t|ated on|y |n
January 2009. There were c|ear and repeated |ntervent|ons at d|erent stages to
steer the TSP contract towards Sw|ss T|m|ng Omega and e||m|nate MSL, Spa|n.
Pestr|ct|ve exper|ence cr|ter|a or "end-to end serv|ce" were spec||ed and a|tered,
and used to |rregu|ar|y d|squa||y MSL, Spa|n. Sw|ss T|m|ng Omega and MSL
Spa|n had |o|nt|y prov|ded TSP so|ut|ons or Me|bourne CWG-2006, Doha As|an
Games-2006 and Be|||ng O|ymp|cs 2008, and were, thus, equa||y qua|||ed /
unqua|||ed as to the "end-to-end serv|ce requ|rement". OC was |et w|th a s|ng|e
|nanc|a| b|dder, eect|ve|y e||m|nat|ng any opportun|ty or compet|t|ve pr|c|ng o
TSP. Th|s ac|||tated award o the TSP contract to Sw|ss T|m|ng Omega at an
exorb|tant cost o Ps. 135.27 crore (compared to |ust Ps.39.84 crore equ|va|ent at
Me|bourne CWG-2006 rom the same vendor). There were a|so severa|
de|c|enc|es |n the perormance o TSP - |n part|cu|ar, the Commentary
lnormat|on System (ClS) and the Games lnormat|on System (prov|ded as va|ue-
|n-K|nd sponsorsh|p by Sw|ss T|m|ng Omega).
The award o the Games Management System was a|so |awed. Pestr|ct|ve
PFP cond|t|ons resu|ted |n d|squa|||cat|on o three out o our b|dders, w|th MSL,
Spa|n be|ng e||m|nated through a b|ased eva|uat|on. Go|d Meda| Systems was
|na||y awarded the GMS contract on a s|ng|e |nanc|a| b|d at a tota| cost o Ps.
25.29 crore (compared to |ust Ps. 4.15 crore equ|va|ent at Me|bourne-CWG rom
the same vendor).
1echno|ogy
LxLCu1lvL SuMMA8?
lnexp||cab|y, OC a||ed to cons|der the need or a Games T|me webs|te t|||
June 2010. The award o the contract to HT-Hungama was |awed and |rregu|ar,
w|th award procedures appear|ng to |ack transparency. ln add|t|on to adverse
med|a reports about the webs|tes perormance, the CGF Pres|dent a|so
con|rmed ser|ous prob|ems w|th the webs|te.
(Chapter 12)
The Sport Funct|ona| Area |n the OC was respons|b|e or organ|sat|on o
sport|ng events, ma|ntenance o resu|ts records, presentat|on ceremon|es, and
purchase o sport|ng equ|pment.
There were severa| de|c|enc|es |n the procurement o sports equ|pment,
such as not o||ow|ng g|oba| tender|ng procedures, purchases on s|ng|e tender
bas|s, and de|c|ent assessment o requ|rements.
The procedures o||owed or h|r|ng Mr. Greg Bowman and h|s company,
Great B|g Events (GBE), or a mu|t|p||c|ty o contracts re|at|ng to sports
presentat|on ceremon|es were quest|onab|e. One contract was, |n eect, de-
act|vated |n September 2010, and re-awarded at exorb|tant rates to GBE. We a|so
not|ced raudu|ent payments to GBE or a|se c|a|ms o personne| ass|gnments
(when they d|d not even v|s|t lnd|a).
(Chapter 13)
Games brand|ng essent|a||y |nvo|ved runn|ng the Games News Serv|ce
(GNS) and other press operat|ons, commun|cat|on and market|ng, and "|mage
and |ook" (|.e. promot|ng a un|que Games |ook and |dent|ty through banners and
graph|cs).
We ound that the exorb|tant cost o Ps. 10 crore or the GNS contract was
due to a dec|s|on to go |n or outsourc|ng (as aga|nst the |nterna||y deve|oped
opt|on used at Me|bourne-CWG 2006) and a|so on account o |awed tender|ng
procedures (w|th re-tender|ng) resu|t|ng |n award on a s|ng|e |nanc|a| b|d to
lnostrada Sports. GNS a||ed to perorm sat|sactor||y dur|ng the Games, as the
Games news content was |naccess|b|e rom 5 to 8 October 2010 and was rect||ed
subsequent|y us|ng makesh|t arrangements.
Sports
Games 8rand|ng
LxLCu1lvL SuMMA8?
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 1S
The se|ect|on o the "Games Look Prov|der" or prepar|ng banners was
marked by a c|uster-based approach (as |n the case o over|ays). Further, on the
pretext o urgency, a snap b|dd|ng process was used. As |n the case o the venue
over|ays contracts, OC a||owed severa| |ne||g|b|e vendors to b|d, wh||e
d|squa|||cat|ons were made on a se|ect|ve bas|s. We a|so ound the same vendor
quot|ng d|erent pr|ces or the same |tems across c|usters.
(Chapter 14)
We ound ser|ous de|c|enc|es |n the award o the workorce consu|tancy
contract to a consort|um o E&Y and EKS. The tender|ng process was c|ear|y
ta||ored to avour EKS. There were severa| de|c|enc|es |n the contractua| c|auses,
wh|ch tended to avour the |nterests o the consu|tant, as we|| as |n the execut|on o
the contract.
We ound that the OC managed the work orce |n an arb|trary and ad hoc
manner, |eav|ng amp|e scope or patronage, avour|t|sm and nepot|sm |n the
appo|ntment and promot|on o o|c|a|s. Secur|ty and reerence checks were not
carr|ed out or most emp|oyees. Certa|n emp|oyees, whose past records shou|d
have rendered them un|t or appo|ntment |n the OC, were neverthe|ess appo|nted.
Other ma|or de|c|enc|es |n certa|n unct|ona| areas |nc|uded the o||ow|ng:
492 persons who had not rece|ved secur|ty c|earance were |ncorrect|y ||sted
|n the data or the lntegrated Secur|ty System, wh|ch |nd|cated that the
accred|tat|on system was not o||owed str|ct|y.
1.5 |akh |anyards at a cost o Ps. 0.68 crore were procured w|th an
|nexp||cab|e |re retardant requ|rement o 800 degrees Ce|s|us.
Contracts or venue c|ean|ng serv|ces were awarded |rregu|ar|y, us|ng a
c|uster-based approach, to |ust two contractors. Pestr|ct|ve e||g|b|||ty cr|ter|a
were app||ed |n a b|ased manner. 8 out o 9 packages went to A2Z
Ma|ntenance and Eng|neer|ng Serv|ces, wh|ch was a|so engaged by OC or
o|ce automat|on serv|ces.
(Chapter 15)
Workforce and Cther Support|ng Act|v|t|es of the CC
LxLCu1lvL SuMMA8?
Common Issues |n Venue Deve|opment
There were de|ays re|at|ng to venue deve|opment at a|| stages p|ann|ng
de|ays on account o |ate preparat|on/ approva| o venue br|es, return br|es, and
concept des|gns, de|ays |n tender|ng and contract award, and de|ays |n works
execut|on and handover.
ln the absence o |n-house des|gn sk|||s, the venue owners/ |mp|ement|ng
agenc|es were dependent on externa| des|gn consu|tants. There were
cons|derab|e var|at|ons |n the perormance o these consu|tants. We not|ced that
where the ro|e o the ore|gn partner |n the des|gn consu|tants consort|a (w|th
re|evant exper|ence |n des|gn o sports stad|a) was |ess, there were s|gn||cant
de|c|enc|es |n des|gn |nputs or execut|on.
D|erent |mp|ementat|on agenc|es o||owed d|erent processes or award o
ma|or construct|on works. CPWD awarded most o the venue deve|opment
contracts on |tem-rate bas|s, wh|ch |s the preerred method as per the CPWD
manua|, s|nce |t |s best su|ted to dev|at|ons rom the or|g|na| scope o work. Two
ma|or works, were, however, awarded on |ump sum bas|s. Large number o extra/
subst|tuted |tems and dev|at|ons |n these works tended to change the very
essence o the contract. PWD, GNCTD awarded most o |ts works on percentage
rate tenders. Th|s method o tender|ng |s acceptab|e, on|y when the ma|or port|on
o work |s on account o |tems |nc|uded |n the De|h| Schedu|e o Pates (DSP),
wh|ch was not the case |n most o the venue deve|opment works.
De|c|enc|es |n the process or award o ma|or works re|ated ma|n|y to pre-
qua|||cat|on and e||g|b|||ty. The pre-qua|||cat|on o b|dders separate|y or each
venue not on|y |ntroduced arb|trar|ness and |ncons|stenc|es |n e||g|b|||ty cr|ter|a,
but a|so de|ayed the process o award and execut|on. Cons|der|ng the s|m||ar
nature o works or sports venue, we be||eve that a common pre-qua|||cat|on
process shou|d have been conducted.
We ound severa| de|c|enc|es |n the process o "|ust||cat|on" or award|ng
works at substant|a||y h|gher amounts than the cost est|mates. There were a|so
numerous |nstances o dev|at|ons (quant|ty dev|at|ons, extra |tems, and
subst|tuted |tems) rom the or|g|na| scope o work, w|th adverse |mp||cat|ons |n
terms o |ncreased cost and de|ays.
We ound numerous |nstances o de|ays |n ach|ev|ng the m||estones ||sted |n
the contract, or wh|ch adequate pena| act|on was not taken, and Extens|ons o
T|me (EOTs) not managed proper|y.
A key e|ement o cost esca|at|on |s |abour wage esca|at|on. We ound severa|
de|c|enc|es |n the app||cat|on o th|s esca|at|on c|ause. ln our op|n|on, a|though
LxLCu1lvL SuMMA8?
such payments are |n the nature o compensat|on, the payments are rout|ne|y
made as per a spec||ed ormu|a and there |s no mechan|sm to ver|y that payment
|s made or |abour actua||y engaged by the contractor/ sub-contractor. ln order to
ensure that the bene|t o |ncreased m|n|mum wages reaches the actua|
bene|c|ary, we recommend that such payments shou|d be made on|y on
product|on o proo o unsk|||ed |abour actua||y engaged, du|y authent|cated by
the Labour We|are Department.
(Chapter 16)
CPWD was engaged by the Sports Author|ty o lnd|a (SAl) or upgradat|on/
renovat|on o |ve compet|t|on venues Jawahar|a| Nehru Stad|um, Dr. SP
Mukher|ee Stad|um, Ma|or Dhyan Chand Nat|ona| Stad|um, lnd|ra Gandh| lndoor
Stad|um, and Dr. Karn| S|ngh Shoot|ng Pange, as we|| as one tra|n|ng venue
DPS, PK Puram. ln add|t|on, CPWD renovated the Kadarpur Shoot|ng Pange on
beha| o CPPF.
We ound that the appo|ntment o Consu|t|ng Eng|neer|ng Serv|ces (CES) as
the ma|n des|gn consu|tant or the |ve ma|n stad|a was ser|ous|y |awed. CES was
avoured at the eva|uat|on stage by award o marks on "concept des|gn" (wh|ch
were |arge|y outputs o a prev|ous set o consu|tancy contracts or "cond|t|on
survey" awarded to CES). Further, the techn|ca| qua|||cat|on o CES on the bas|s o
"concept des|gn" |s a|| the more surpr|s|ng, s|nce the OCs consu|tant, EKS was
engaged on|y |n November 2006 and thereater prepared the venue br|es, on the
bas|s o wh|ch "concept des|gns" were to be prepared. The perormance o CES |n
a|most a|| the venue consu|tancy contracts was abysma|.
A Centra||sed Co-ord|nat|on Comm|ttee, cha|red by Cha|rman, OC and
|nc|ud|ng representat|ves rom venue owners/ |mp|ement|ng agenc|es, was
respons|b|e or se|ect|on o brands o sports suraces. We ound c|ear |nstances o
avour|t|sm and b|as shown by th|s Comm|ttee (wh|ch was |arge|y gu|ded by the
OC) |n se|ect|ng sport suraces or ath|et|c tracks, hockey tur and badm|nton court
mats.
A |o|nt tender|ng mechan|sm was put |n p|ace or se|ect|on o agenc|es or
|ay|ng the sports suraces at the venues. We ound ser|ous de|c|enc|es |n the
award o the contract or |ay|ng o synthet|c ath|et|c track suraces by CPWD to
Sh|v Naresh Sports Pvt. Ltd. The restr|ct|ve tender|ng cond|t|ons resu|ted |n a
s|tuat|on where the awarded rates were much h|gher than comparat|ve rates
Venues deve|oped by Centra| ub||c Works Department
Genera| Issues
LxLCu1lvL SuMMA8?
quoted or s|m||ar works. We a|so ound that the area over wh|ch the synthet|c track
was |a|d |nc|uded 9,130 sqm outs|de the ma|n track and area o |na| warm-up and
ca|| rooms at JLN Stad|um at a cost o Ps. 6.63 crore. We are unab|e to der|ve
assurance that th|s add|t|ona| quant|ty was requ|red or the Games, and con|rmed
as such by OC. We a|so ound de|c|enc|es |n the qua||ty o the ma|n compet|t|on
track dur|ng our |e|d v|s|ts |n November 2010.
A |o|nt tender|ng mechan|sm was evo|ved or supp|y and |nsta||at|on o vvlP/
vlP cha|rs and med|a cha|rs or |ve venues. We ound a systemat|c pattern o
ca|cu|at|ons and re-ca|cu|at|ons or |n|at|on o rates, wh|ch u|t|mate|y bene|ted
the vendor, Super|or Furn|tures.
We ound excess|ve "redundancy" |n power supp|y arrangements or the
venues, |nc|ud|ng |nsta||at|on o DG Sets as permanent |xtures, |nsta||at|on o
PS, and h|r|ng o add|t|ona| DG sets o huge capac|ty by OC.
ln Jawahar|a| Nehru Stad|um, we ound |nstances o non-ad|ustment or
work not executed, extra payments or work a|ready covered by the scope o the
|umpsum contract, and non-|evy o compensat|on or de|ayed comp|et|on o the
work o the membrane roo. We ound de|c|enc|es |n execut|on o work |n the
construct|on o the we|ght||t|ng aud|tor|um at JNS, and common areas.
The ma|n work o Dr. Shyama Prasad Mukher|ee Sw|mm|ng Poo| Comp|ex
was awarded on a |umpsum contract. We ound a number o concess|ons to the
contractor, |n dev|at|on rom the sp|r|t o the |umpsum contract |arge number o
extra |tems, add|t|ona| payment or work covered |n the or|g|na| contract, as we|| as
subst|tut|on o the or|g|na| ga|va|ume roo w|th an a|um|n|um roo|ng system, due
to the a||ure o the contractor. The essence o the |umpsum character o the
contract was, thus, deeated. There were a|so |nstances o poor qua||ty o work
execut|on.
Work at the lnd|ra Gandh| Stad|um Comp|ex |nvo|ved upgradat|on/
construct|on o venues or cyc||ng, gymnast|cs and wrest||ng. We ound that a |rm,
otherw|se |ne||g|b|e or the compos|te work o the |ndoor cyc||ng ve|odrome, was
|rregu|ar|y qua|||ed. Strange|y, compet|t|on or |ay|ng the permanent t|mber track
or the ve|odrome was ||m|ted to lnd|an urn|ture contractors (|n assoc|at|on w|th an
|nternat|ona| track des|gn and construct|on expert), w|th no attempt to |oat
Iawahar|a| Nehru Stad|um
Dr. SM Sw|mm|ng oo| Comp|ex
IG Stad|um Comp|ex
LxLCu1lvL SuMMA8?
|nternat|ona| tenders. Th|s was compounded by d||ut|on o e||g|b|||ty cr|ter|a. There
were de|c|enc|es |n the b|dd|ng process or the wrest||ng stad|um, u|t|mate|y
resu|t|ng |n a s|ng|e |nanc|a| b|d, wh|ch ra|ses concerns on the compet|t|veness o
the b|dd|ng process. Numerous |rregu|ar|t|es/ re|axat|ons |n the tender|ng process
or d|erent works re|at|ng to the gymnast|cs stad|um, hoste|/ med|a centre and
roads, boundary wa|| etc. to avour a part|cu|ar b|dder, Swadesh| Construct|on Co.
was a|so observed.
ln the case o the Ma|or Dhyan Chand Stad|um, aud|t revea|ed d||ut|on o
pre-qua|||cat|on cr|ter|a bene|t|ng a part|cu|ar contractor. Est|mates were |owered
substant|a||y rom the PFQ to the PFP stage, wh|ch may have d|scouraged |arger
compan|es rom part|c|pat|ng. We a|so ound that the "|ust||ed" rates ca|cu|ated
by the CPWD d|d not tru|y re|ect the market, as there was ev|dence o much |ower
rates or components o the ma|n work rom outsourced agenc|es. A|so, desp|te
add|t|ona| costs or reduced t|me per|od or comp|et|on actored |nto the
"|ust||cat|on" process, the pro|ect took 37 months, aga|nst the st|pu|ated 18
months. There were |nexp||cab|e de|ays, w|th re-tender|ng tw|ce a|ong w|th d||ut|on
o b|d cr|ter|a, |n award o the work o the PA system to a |rm, wh|ch was ound
|ne||g|b|e |n the |rst and second rounds o tender|ng.
The or|g|na||y env|saged renovat|on/ upgradat|on o Dr. Karn| S|ngh
Shoot|ng Pange was changed to reconstruct|on o ranges, creat|ng a squeeze o
t|me at the execut|on stage. There were de|c|enc|es |n the qua||ty o works
executed, wh|ch pers|sted even ater the Games. We a|so ound certa|n
de|c|enc|es |n the execut|on o works at the Kadarpur Shoot|ng Pange. The
tra|n|ng ac|||t|es to be constructed at the CPPF campus, Jharoda Ka|an or po||ce
sportspersons or part|c|pat|on |n CWG-2010, had not been comp|eted.
(Chapter 17)
De|h| Deve|opment Author|ty (DDA) deve|oped compet|t|on/tra|n|ng venues
at S|r| Fort Sports Comp|ex (SFSC), Yamuna Sports Comp|ex (YSC) and Saket
Sports Comp|ex (SSC).
There was an |nexp||cab|e de|ay o near|y a year |n engagement o the des|gn
consu|tants or construct|on work o the new venues, wh|ch resu|ted |n cascad|ng
Ma[or Dhyan Chand Stad|um
Cther Venues deve|oped by CWD
Venues deve|oped by De|h| Deve|opment Author|ty
LxLCu1lvL SuMMA8?
de|ays |n award and execut|on o the ma|n works. We ound de|c|enc|es |n the
se|ect|on and perormance o Arch|tect Bureau-GSA Group Consort|um as des|gn
consu|tant or the archery compet|t|on venue, tra|n|ng venues and reurb|shment
work.
There were s|gn||cant de|c|enc|es |n the procurement o cha|rs (w|th
|ust||cat|on rates be|ng unre||ab|e). De|c|enc|es were a|so not|ced |n the contracts
or synthet|c surace or tab|e tenn|s court as we|| as map|e wood |oor|ng at one
venue.
(Chapter 18)
NDMC and PWD, GNCTD deve|oped compet|t|on/tra|n|ng venues at
Thyagara|, Ta|katora, Sh|va||, and Chhattrasa| Stad|a and Government Mode|
Lud|ow Cast|e Schoo|. The ma|n contractor h|red or Sh|va|| Stad|um was a ore|gn
company, Ch|na Pa||way Sh|s||u Group Corporat|on (CPSGC), when |t |s apparent
rom the cond|t|ons o the NlT, that such was not the |ntent|on. Sh|va|| Stad|um
cou|d not be comp|eted |n t|me or the Games and the comp|eted hockey p|tch |n
the stad|um has an East-West or|entat|on, as aga|nst the requ|red North-South
or|entat|on.
S|mp|ex Pro|ect Ltd. was engaged as the ma|n contractor or the works at
Ta|katora lndoor Stad|um on a s|ng|e b|d bas|s, we are unab|e to der|ve assurance
that the best pr|ce was determ|ned or the work |n a compet|t|ve market. The qua||ty
o construct|on was a|so ound de|c|ent by CTE,CvC.
ln the case o Thyagara| Stad|um, we ound severa| |nstances o adopt|on o
h|gher cost |tems or est|mat|on/execut|on rom among mu|t|p|e opt|ons, and a|so
numerous |nstances o spec|y|ng a s|ng|e brand or "equ|va|ent", thus avour|ng
these brands, w|th consequent|a| reduced compet|t|on and |ncreased costs. We
a|so ound mu|t|p|e orms o power back up a so|ar power generator un|t, and a
due| ue| gas turb|ne w|th add-on vapour Absorpt|on Mach|ne (vAM). The
expend|ture o Ps. 22.41 crore on the turb|ne and the vAM |s |arge|y |nructuous, as
|t wou|d be h|gh|y expens|ve to generate power rom th|s un|t post the Games.
lrregu|ar|t|es were a|so observed |n the appo|ntment o the des|gn consu|tant
or the Chhattrasa| Stad|um and Lud|ow Cast|e.
JMl was se|ected as a tra|n|ng venue or Pugby 7s and tab|e tenn|s. We
ound that the Pugby 7s |e|d, deve|oped at a cost o Ps. 2.11 crore, was be|ng
converted back |nto a cr|cket |e|d, wh|ch deeats, at |east part|y, the ob|ect|ve o
Venues deve|oped by other agenc|es
LxLCu1lvL SuMMA8?
creat|on o state o the art sport|ng |nrastructure. Further, Ps. 2.58 crore was
d|verted or creat|on o sport|ng ac|||t|es or other d|sc|p||nes (basket ba||, |awn
tenn|s, vo||ey ba||, hockey/ootba|| etc). Wh||e we recogn|se that deve|opment o
un|vers|ty prem|ses or prov|d|ng sports ac|||t|es |s des|rab|e, the d|vers|on o
unds sanct|oned or a spec||c purpose |s |rregu|ar.
De|h| n|vers|ty and |ts a|||ated co||eges were des|gnated as the
compet|t|on venues or Pugby 7s and tra|n|ng venues or netba||, box|ng, rugby 7s,
ath|et|cs and womens wrest||ng. We ound that the |egacy p|an or tra|n|ng venues
at |nd|v|dua| co||eges, cover|ng the opt|mum ut|||sat|on o deve|oped |nrastructure
as a|so arrangements or the|r regu|ar ma|ntenance and upkeep, |s st||| pend|ng.
The P.K. Khanna Tenn|s Comp|ex, under the A|| lnd|a Tenn|s Assoc|at|on,
was des|gnated as the compet|t|on venue or tenn|s. We ound that the consu|tant
or th|s upgradat|on pro|ect was |rregu|ar|y se|ected on nom|nat|on bas|s.
However, AlTAs concept o de|et|ng the stee| port|on rom the or|g|na| contract (on
account o vo|at|||ty |n stee| pr|ces |n 2008) and procur|ng |t d|rect|y had |ts
advantages, espec|a||y s|nce |t d|d not |nc|ude any esca|at|on/ de-esca|at|on
c|ause |n the contract.
(Chapter 19)
The Commonwea|th Games v|||age, near the Akshardam Temp|e, had three
ma|or components a res|dent|a| comp|ex or hous|ng the ath|etes and o|c|a|s,
pract|ce areas or ath|etes, and temporary structures (over|ays) or the
|nternat|ona| zone, v|||age operat|ons and other areas.
We ound that key |ssues re|ated to se|ect|on o s|te were not proper|y
addressed. Except or strengthen|ng o the Akshardam bund, there was no
ev|dence o comp||ance w|th the upstream |ood m|t|gat|on/ abatement measures
on the r|ver Yamuna st|pu|ated by the M|n|stry o Env|ronment and Forests wh||e
accord|ng cond|t|ona| env|ronmenta| c|earance. DDA essent|a||y attempted to
abd|cate respons|b|||ty or th|s |ssue. We cou|d a|so not ver|y comp||ance w|th the
orders o the Honb|e Supreme Court, wh|ch had perm|tted construct|on on the
bas|s o an assurance regard|ng mon|tor|ng o construct|on act|v|t|es by a PM-
appo|nted comm|ttee |n assoc|at|on w|th Dr. PK Pachaur|. Supr|s|ng|y, when
contacted, Dr. Pachaur| con|rmed that he had not been |nvo|ved w|th any such
mon|tor|ng act|v|ty.
We ound ser|ous |rregu|ar|t|es |n the award o the contract or construct|on o
the res|dent|a| comp|ex |n PPP mode to Emaar MGF Construct|ons Pvt. Ltd. There
Commonwea|th Games V|||age
LxLCu1lvL SuMMA8?
was a ser|es o m|srepresentat|ons and accommodat|ons at the PFQ and PFP
stage that resu|ted |n Emaar MGF Construct|ons Pvt. Ltd, wh|ch was not qua|||ed
|n terms o the PQ cr|ter|a, emerg|ng as an e||g|b|e (and successu|) b|dder through
the consort|um route. Further, a short t|me per|od o |ust seven days was a||owed
ater a s|gn||cant addendum, |ntroduc|ng s|gn||cant changes to the b|d
cond|t|ons.
ln response to the PFP, two b|ds were rece|ved rom Emaar MGF
Construct|ons Pvt. Ltd and DLF Ltd. Wh||e DLFs cond|t|ona| b|d was summar||y
re|ected w|thout any |nteract|on or negot|at|on, DDA chose to engage |n a
pro|onged correspondence w|th |ts |nanc|a| consu|tants, |ega| adv|sors and
Emaar MGF Construct|ons Pvt. Ltd to |nd so|ut|ons to address the de|c|enc|es |n
|ts proposa|. F|na||y, on|y Emaar MGF Construct|ons Pvt. Ltd was dec|ared
techn|ca||y qua|||ed, and was awarded the contract on the bas|s o a s|ng|e
|nanc|a| b|d, thus deny|ng DDA the bene|t o |nanc|a| compet|t|on.
The execut|on o the res|dent|a| comp|ex pro|ect was a|so p|agued by
severa| |rregu|ar|t|es and de|c|enc|es. The FAP constructed by the pro|ect
deve|oper substant|a||y exceeded not on|y the sanct|oned p|an, but a|so the
max|mum perm|ss|b|e FAP under the Master P|an or De|h| 2021. Emaar MGF
a|so |||ega||y constructed 17 add|t|ona| dwe|||ng un|ts |n the basement meant or
park|ng. DDA a||owed severa| |nanc|a| concess|ons to Emaar MGF, |nc|ud|ng
rev|s|on o m||estones and de|ayed / non-|evy o ||qu|dated damages. Aga|nst the
st|pu|ated dead||ne o 1 Apr|| 2010, the res|dent|a| |ats were handed over to DDA
between June and August 2010 and that too |n |ncomp|ete cond|t|on.
The Centra| Bu||d|ng Pesearch lnst|tute, Poorkee (CBPl) was appo|nted by
DDA as the th|rd party |ndependent qua||ty |nspect|on agency or the res|dent|a|
comp|ex on|y ater most o the oundat|on work was executed. CBPl po|nted out
ser|ous |apses |n construct|on work through th|rteen reports between June 2008
and October 2010. These |nc|uded de|c|ent secondary re|norcement o beams
and co|umns, |ack o adequate concrete cover to Pe|norc|ng Stee|, |mproper
beam-co|umn |o|nts, |mproper a||gnment o co|umns and tapered co|umns (wh|ch
were p|astered to cover up the de|c|enc|es, contrary to CBPls adv|ce), and
d|erences |n the |eve|s o grade s|abs |ead|ng to seepage and |eakages |n the
basements. CBPl conc|uded that on see|ng the permeab|||ty o the concrete and
the corros|on o re|norc|ng stee|, |t gave an |mpress|on that the serv|ce ||e o these
towers cou|d not be more than 20 years, un|ess substant|a| expend|ture was
|ncurred on repa|r and retro|tt|ng. DDA d|d not take adequate act|on on these
reports, as the de|c|enc|es cont|nued to recur |n CBPls success|ve reports.
There were ser|ous de|c|enc|es w|th regard to the award and execut|on o
the des|gn consu|tancy contracts or construct|on o the pract|ce areas. The
LxLCu1lvL SuMMA8?
se|ect|on o Sport|na Payce lnrastructure Ltd. as the ma|n contractor or the
pract|ce areas was man|pu|ated to ensure that Sport|na Payce Construct|on
(lnd|a) Pvt Ltd. (a d|erent ent|ty) pre-qua|||ed and the successu| b|dder or the
pro|ect was d|erent rom the pre-qua|||ed consort|um. Subsequent|y, due to poor
perormance, the contract was term|nated, and re-awarded.
The se|ect|on o GL L|tmus Events Pvt. Ltd. as the contractor or de||ver|ng
temporary structures (over|ays) or the |nternat|ona| zone and other areas was
equa||y |awed. The successu| b|dder was ent|re|y d|erent rom the pre-qua|||ed
ent|ty, and the ore|gn ent|ty w|th re|evant expert|se was not part o the successu|
b|dd|ng ent|ty. Further, or a contract o Ps. 41.38 crore, the bu|k o the mater|a| or
wh|ch was to be |mported, the va|ue assessed at the lnd|an customs was on|y Ps.
5.32 crore.
De|h| Ja| Board (DJB) constructed a 1 MGD Water Treatment P|ant (WTP) or
the Games v|||age, Akshardham Temp|e and surround|ng areas at a cost o Ps.
35.20 crore. We ound that the need or a separate 1 MGD was not c|ear|y
estab||shed and the p|ant was over-des|gned w|th expens|ve membrane ||trat|on
techno|ogy. Further, the tender|ng process was |awed and |rregu|ar, w|th undue
and |nexp||cab|e de|ays. The b|d eva|uat|on was ta||ored to avour award o the
work to a s|ng|e b|dder. The WTP |s current|y shut down and |ts requ|rement on a
|egacy bas|s |s quest|onab|e.
DDA a|so purchased our 1250 KvA each generat|ng sets w|th excess|ve
and undue redundancy, wh|ch are now |y|ng |d|e. P|ans to sh|t two o these sets to
DDA Headquarters (vlkas Sadan) appear unreasonab|e, as v|kas Sadans current
|oad |s |ust 1230 KvA.
(Chapter 20)
ln 2004, GNCTD dec|ded to |mp|ement streetscap|ng and beaut||cat|on o
roads or "aesthet|cs" beore CWG-2010. However, |n our v|ew, the street-scap|ng
and beaut||cat|on pro|ect was |||-conce|ved and |||-p|anned, w|thout a broad
overarch|ng v|s|on and perspect|ve o how th|s wou|d |mpact urban des|gn and
deve|opment. The pro|ect was not part o De|h|s C|ty Deve|opment P|an under the
Gols |agsh|p JNNPM programme or urban deve|opment and renewa|. GNCTD
d|d not deem |t necessary to obta|n c|earance rom DAC or th|s pro|ect, nor was
there ev|dence o consu|tat|on w|th the Tra|c Po||ce at an appropr|ate|y ear|y stage
to assess and co-ord|nate |ts |mpact on the management o the huge vo|ume o
De|h| tra|c.
Streetscap|ng and 8eaut|f|cat|on of koads
around CWG Venues
LxLCu1lvL SuMMA8?
Streetscap|ng and beaut||cat|on works at exorb|tant average awarded costs
o Ps. 4.8 crore/ km (compared to NHAls est|mated cost o Ps. 9.5 crore / km or
construct|ng a our-|ane nat|ona| h|ghway or lnd|an Pa||ways est|mated cost o
about Ps. 4.1 crore/km or construct|ng ra||way track) were awarded and executed
|n an ad hoc and arb|trary manner, w|th wasteu| expend|ture o Ps. 101.02 crore.
The pro|ect was |arge|y a consu|tant-dr|ven pro|ect, w|th the se|ect|on o
consu|tants be|ng arb|trary and non-transparent, and w|thout any common des|gn
gu|de||nes and targeted budgetary est|mates. The consu|tants were g|ven a ree
hand to draw up des|gns and est|mates or the packages a||otted to them. Th|s
resu|ted |n adopt|on o r|cher spec||cat|ons |n an arb|trary and |ncons|stent
manner |n d|erent packages. We a|so ound adopt|on o h|gher rates/ short
recovery, and other de|c|enc|es |n contract management. Th|rd Party Qua||ty
Contro| a||ed to prov|de adequate assurance on the spec||cat|ons and mater|a|s
used |n the works.
(Chapter 21)
The pro|ect or modern|sat|on o De|h| Street L|ght|ng System was conce|ved
by GNCTD |n June 2006, w|th p|ans to |mp|ement |t across De|h| w|th|n 2 years.
Deta||ed ||ght|ng standards were prepared |n November 2006. A|though these
standards prov|ded on|y the techn|ca| parameters o perormance o |amps and
|um|nar|es and d|d not d|st|ngu|sh between |nd|genous and |mported |um|nar|es,
PWD st|pu|ated the use o a m|x o |mported and |nd|genous |um|nar|es or
d|erent categor|es o roads. Pecords show the dec|s|on on use o |mported
|um|nar|es be|ng taken w|th the act|ve |nvo|vement o the CM at var|ous stages. No
techn|ca| note regard|ng reasons or use o |mported |um|nar|es a|ong w|th cost
bene|t ana|ys|s was ound on record. The dec|s|on taken by PWD regard|ng use
o |mported |um|nar|es was a|so adopted by MCD and NDMC.
The |mported |um|nar|es were procured at a ar h|gher cost than the
domest|c |um|nar|es, |ead|ng to avo|dab|e extra expend|ture o Ps. 31.07 crore
across the three agenc|es. Mode|s o var|ous compan|es o vast|y d|erent repute
and o d|erent pr|ce range were se|ected at the same |eve|, w|thout any record o
techno-econom|c eva|uat|on o opt|ons oered by d|erent b|dders. We a|so
ound that the procurement pr|ce o |mported |um|nar|es was ar h|gher than the
a|r pr|ce computed on the bas|s o actua| |nvo|ce pr|ce.
The award|ng o work |n NDMC ater ca|||ng o des|gn based tenders
resu|ted |n an extra expend|ture o Ps. 6.77 crore, as work was awarded to the
b|dder w|th h|gher un|t rates or var|ous |tems. NDMC a|so awarded add|t|ona|
Upgradat|on of Street L|ght|ng of koads |n De|h|
LxLCu1lvL SuMMA8?
work o 18.445 km, |ncorrect|y term|ng |t as dev|at|ons to the or|g|na| contract. We
be||eve that th|s may |ead to an est|mated add|t|ona| |oss o Ps. 6.13 crore.
Pestr|ct|ve tender|ng cond|t|ons were st|pu|ated and the work was sp||t |nto
three parts |n PWD, w|th requ|rement o not more than one work to one b|dder,
reduc|ng the compet|t|on between the b|dd|ng |rms. Ater once be|ng dec|ared
d|squa|||ed, one o the |rms, Spaceage was |rregu|ar|y dec|ared qua|||ed on
subsequent re-assessment, o||ow|ng h|s appea| to the CM.
We ound avo|dab|e expend|ture o Ps. 2.54 crore |n contracts awarded by
MCD (due to non-comp||ance w|th des|gn spec||cat|ons), as we|| as suspected
post tender a|terat|on o b|ds |n two cases, wh|ch had resu|ted |n enhancement o
the quoted amounts by Ps. 6.97 crore.
(Chapter 22)
ln February 2006, |t was dec|ded that the ent|re c|ty o De|h| shou|d have state
o the art road s|gnages w|th appropr|ate structura| system or the orthcom|ng
CWG-2010. A p||ot pro|ect was taken up by PWD |n May 2008 through author|sed
converters o the two |ead|ng manuacturers o the retro re|ect|ve sheets.
We ound that the department d|d not ac|||tate hea|thy compet|t|on, but
mere|y ensured shar|ng o s|gnage work between the two ma|or sheet
manuacturers, 3M and Avery-Denn|son. lnstead o ca|||ng a s|ng|e tender or the
comp|ete work, the pro|ect work was d|v|ded among three PWD Zones or
separate tender|ng and execut|on, w|th restr|ct|ve cond|t|ons, |ead|ng to on|y two
va||d b|dd|ng part|es, w|th work automat|ca||y gett|ng d|str|buted between them.
The ant|-compet|t|ve b|dd|ng cond|t|ons |ed to work o one zone be|ng awarded at
|east Ps. 1.40 crore above the correspond|ng cost |n the other two zones as we|| as
h|gher overa|| costs o procurement |n PWD, as compared w|th NDMC.
Subsequent to the award o work, the des|gns or the s|gnages were
substant|a||y rev|sed, |ead|ng to |arge number o extra and subst|tuted |tems o
dub|ous ut|||ty w|th add|t|ona| avo|dab|e expend|ture o Ps 14.88 crore.
(Chapter 23)
GNCTD undertook construct|on o 25 roads and br|dges or upgradat|on o
c|ty |nrastructure and |n preparat|on or CWG-2010. We se|ected seven o these
pro|ects or deta||ed rev|ew.
koad S|gnages
C|ty Infrastructure Deve|opment: koads and I|yovers
LxLCu1lvL SuMMA8?
A|| the seven pro|ects adopted Contractors Pro|t and Overhead Charges
(CPOH) o 37.5 per cent or the br|dge/ |yover components |n contrast to CPOH o
15 per cent st|pu|ated by CPWD. Th|s resu|ted |n |ncreas|ng the |ust||ed cost,
worked out by the department ater open|ng o the |nanc|a| b|ds, by Ps. 352.47
crore. A h|gher CPOH |eads to a h|gher cost base||ne or potent|a| b|dders. The
CPOH rate a|so orms an |nd|rect |nput |nto the process o preparat|on o |ust||ed
costs, where requ|red, and the assessment o reasonab|eness o rates or |na|
award o the contract.
There was |rregu|ar award o work |n two pro|ects where L-1 was determ|ned
by cons|der|ng separate |etters quot|ng a |ump-sum amount, wh||e use o
correct|on |u|d |n tender documents, and |arge number o cutt|ngs/correct|ons
were seen |n another b|d (wh|ch was accepted).
Two works cost|ng Ps. 62.63 crore were got executed by PWD through
dev|at|ons o ongo|ng works, |nstead o ca|||ng or resh tenders, on grounds o
urgency. These works however, were, not comp|eted |n t|me or the games. PWD
a|so awarded work or construct|on o two arch oot over br|dges (FOB) or Ps.
10.35 crore at JLN Stad|um us|ng or the |rst t|me, a suspens|on br|dge des|gn
us|ng |mported Maca||oy suspens|on system. One o the FOBs co||apsed and the
work was subsequent|y stopped on both the FOBs. Both are st||| |y|ng |ncomp|ete.
(Chapter 24)
A|though the pro|ect or renovat|on and restorat|on o Connaught P|ace (CP)
was env|saged |n Apr|| 2004, |t was p|agued by undue de|ays. The or|g|na|
est|mated cost o Ps. 76 crore (as o May 2005) went up near|y n|ne-o|d to Ps. 671
crore by Ju|y 2007, w|th a huge |ncrease |n scope o work.
The approved DPP or the pro|ect was subm|tted on|y |n February 2008, and
|t was, thereore, unreasonab|e to expect that the pro|ect cou|d have been
comp|eted |n t|me or the Games, espec|a||y |n v|ew o the constra|nts o tra|c
management cons|der|ng the |mportance o Connaught P|ace to De|h|s tra|c.
NDMC chose not to o||ow the approach o d|v|d|ng the pro|ect |nto manageab|e
packages, so organ|sed as to m|n|m|se tra|c d|srupt|on across the who|e o CP,
and tak|ng up those pro|ect components wh|ch cou|d have been comp|eted |n
t|me. lnstead, the pro|ect was d|v|ded |nto packages spann|ng the who|e o CP,
w|th a|| act|v|t|es gett|ng underway around the same t|me.
kenovat|on and kestorat|on of Connaught |ace
LxLCu1lvL SuMMA8?
Apart rom the p||ot pro|ect or acade restorat|on o C b|ock (wh|ch was
comp|eted |n August 2008), the pro|ect rema|ned |ncomp|ete at the t|me o the
Games. We a|so ound s|gn||cant de|c|enc|es |n contract management, w|th
consequent avo|dab|e expend|ture.
(Chapter 25)
ln September 2008, GNCTD dec|ded to |ntroduce a TETPA network (a
proess|ona| mob||e commun|cat|on serv|ce essent|a||y meant or emergency
serv|ces and government agenc|es) |n t|me or CWG-2010. GNCTD awarded the
contract or TETPA at Ps.99.81 crore or an 87 month per|od, cover|ng not on|y the
Games per|od but a|so a seven year |egacy per|od. ln our v|ew, the dec|s|on to
extend TETPA or |egacy use or seven years was |||-conce|ved. A proper
assessment o the requ|rements o De|h| Po||ce (the ma|n user) and other pub||c
agenc|es as we|| as the rep|acement o ex|st|ng networks w|th TETPA (s|nce no
commun|cat|on was perm|tted by DoT between TETPA and other networks) was
not carr|ed out. Post CWG-2010, most o these expens|ve TETPA sets are, |n
eect, no more than mob||e phones.
Dur|ng CWG-2010, |ow |oor buses o DTC were used or erry|ng the
ath|etes, techn|ca| o|c|a|s and med|a persons. For keep|ng the buses new or
CWG-2010, DTC kept about 16 per cent o |ts |ow |oor |eet |d|e between March
and August 2010, urther, 78 per cent o the B|ue||ne |eet was a|so taken o the
roads |n the NDMC area or the durat|on o the Games. Th|s, compounded by
|arge sca|e d|vers|on o DTC dr|vers or Games-re|ated dut|es, |ed to s|gn||cant
d|srupt|on o pub||c transport serv|ces.
Modern|sat|on pro|ects ||ke LED dest|nat|on boards on standard buses, and
construct|on o T|me Keep|ng Booths cou|d not be comp|eted beore CWG-2010
as env|saged. The construct|on o 48 t|cket|ng booths a|| over the c|ty appears to
be an anachron|sm at a t|me when the buses are be|ng |tted w|th GPS/ AvTS.
For gett|ng 1500 Bus Queue She|ters (BQSs) constructed beore the
Games, DTC and the Transport Department o GNCTD resorted to var|ous
methods o execut|on (|nc|ud|ng award o 1050 BQSs on Government und|ng/
BOT mode to DlMTS, a non-Government ent|ty w|th 50 per cent pr|vate
Cther Infrastructure Deve|opment Act|v|t|es
Secured Commun|cat|on Serv|ces
1ransportat|on Serv|ces
LxLCu1lvL SuMMA8?
shareho|d|ng), wh|ch |nd|cated arb|trar|ness, ad hoc|sm and |ack o c|ar|ty |n
|mp|ementat|on o such a |arge pro|ect. So ar, on|y 472 BQSs cou|d be
comp|eted.
The bus park|ng constructed at the Ash Pond oppos|te the M|||enn|um Park
|s not rea||y a temporary structure. lt has certa|n permanent construct|ons. lts use
has cont|nued we|| beyond the short requ|rements o the Games. Th|s was c|ear|y
|n v|o|at|on o the Master P|an or De|h| 2021 and the proposed Zona| p|an o De|h|,
wh|ch earmarks the area as a green zone w|th recreat|ona| uses but w|thout
permanent construct|on.
GNCTD p|anned to comm|ss|on a new power p|ant at Bawana on the
grounds o |ncreased dependence on own power generat|on sources. The
construct|on o the 1500 MW Bawana gas-based power p|ant was, however,
de|ayed, and cou|d not be comp|eted |n t|me or the Games. De|h| Transco Ltd.
(DTL) a|so took up |ve 220 KvA substat|ons and seven correspond|ng cab||ng
pro|ects to strengthen the power supp|y s|tuat|on |n De|h| |n t|me or the Games.
Most o these pro|ects were awarded very |ate (|n the second ha| o 2009) and
cou|d not be comp|eted beore the Games. There were numerous de|c|enc|es |n
the contract award process.
(Chapter 26)
The Commonwea|th Youth Games 2008 (CYG-2008), a sub-event o CWG-
2010, was he|d between 12 and 18 October 2008 at the Sh|v Chhatrapat| Sports
Comp|ex Ba|ewad|- Mha|unge, Pune, wh|ch was reurb|shed and upgraded or the
event.
We ound ser|ous de|c|enc|es w|th regard to the construct|on o the 3-star
hote| on PPP bas|s or accommodat|ng the part|c|pants. The p|ot or the hote| was
|ocated |n a pub||c/ sem|-pub||c |and use zone, and commerc|a| use was not
perm|tted. The proposa| or change o |and use was mooted to the Government o
Maharashtra (GoM) on the grounds o urgency/ |ate stage, work a|ready hav|ng
commenced on the ground, and |ack o other a|ternat|ves. Th|s was approved by
the then Ch|e M|n|ster |n October 2007. The Pev|ew Comm|ttee, headed by the
Ch|e Secretary, abd|cated |ts respons|b|||ty |n th|s regard.
ower
Crgan|sat|on of Commonwea|th outh Games - 2008,
une
LxLCu1lvL SuMMA8?
Further, the tender|ng process or the hote| was severe|y |awed. Tender
cond|t|ons were re|axed substant|a||y |n var|ous stages, purported|y on grounds o
|ack o response. Strange|y, the |ssue o change o |and use was not ra|sed at a||
dur|ng the tender|ng process. lt |s poss|b|e that on|y b|dders who were con|dent o
gett|ng post acto c|earance rom the GoM wou|d have gone ahead w|th the
b|dd|ng process. The contract was |na||y awarded on a s|ng|e |nanc|a| b|d to n|ty
lnra Pro|ects w|th an NPv ar be|ow that recommended by the F|nance
Department.
CYG-2008, Pune was expected to be a |earn|ng exper|ence or the stag|ng o
CWG- 2010 at De|h|. The de|c|enc|es not|ced at Pune, and the resu|t|ng
recommendat|ons were |ntended to ensure that these were not repeated |n CWG-
2010. We, however, not|ced that OC |ost th|s opportun|ty to |earn and test |ts
preparedness or De|h| 2010, and consequent|y repeated |ts m|stakes |n key
unct|ona| areas dur|ng CWG-2010, notab|y techno|ogy, t|cket|ng, sponsorsh|p
and merchand|s|ng, press operat|ons, cater|ng and accommodat|on.
We a|so ound severa| de|c|enc|es |n the procurement o e|ectron|c, sports
and other equ|pment or CYG-2008. Most o the secur|ty equ|pment |ndented or
CYG-2008, Pune was e|ther ordered ater the Games, or rece|ved ater the Games.
Many o the c|ty |nrastructure pro|ects (taken up |arge|y under JNNPM) cou|d
not be comp|eted |n t|me or the Games.
(Chapter 27)
A|though Doordarshan was |nd|cated as the Host Broadcaster |n the May
2003 b|d, |t was orma||y not||ed by the OC on|y |n March 2007. The Host
Broadcaster agreement between the OC and Prasar Bharat| (PB) was s|gned |n
May 2009.
The award o the broadcast|ng serv|ces contract by PB to SlS L|ve was
|awed on severa| counts:
On|y one b|dder, SlS L|ve, was qua|||ed on techn|ca| grounds, and the
contract was awarded on a s|ng|e |nanc|a| b|d, w|thout any compet|t|on.
Lack o compet|t|on was ac|||tated by a r|g|d stand taken by PB at the stage
o b|dd|ng (espec|a||y on the payment schedu|e), wh|ch restr|cted potent|a|
compet|tors rom b|dd|ng. However, PB agreed at the pre-b|d meet|ng to
|na||se the contract terms "mutua||y" w|th the se|ected ent|ty, and
subsequent|y amended numerous c|auses o the drat contract to make |t
one-s|ded |n avour o SlS L|ve.
Med|a and 8roadcast|ng Serv|ces
LxLCu1lvL SuMMA8?
ent|re contract on the same day to Zoom Commun|cat|ons, wh|ch wou|d

have been |ne||g|b|e or b|dd|ng. We ound that SlS L|ve and Zoom were |n
a|||ance much beore the s|gn|ng o the contract w|th PB, and even at the
contract drat|ng stage, the |ntent|on o SlS L|ve to outsource the contract
was c|ear|y ev|dent.
Wh||e PBs contract w|th SlS L|ve was or Ps. 246 crore, the sub-contract
between SlS L|ve and Zoom was or on|y Ps. 177.30 crore (wh|ch wou|d a|so
actor |n Zooms pro|t marg|n). C|ear|y, there was a substant|a| |oss to PB
and Government, a|though we are unab|e to quant|y th|s |oss (based on
ava||ab|e and ver||ab|e records).
As per the contracted schedu|e o payment, SlS L|ve was to rece|ve on|y 30
per cent payment beore 14 October 2010, w|th the ba|ance on|y on
ver||cat|on o perormance. Th|s was |rregu|ar|y amended to a||ow 60 per
cent payment |n advance o the Games (sub|ect to successu| |nsta||at|on
and test|ng o equ|pment).
PB a||ed to enorce comp||ance by SlS L|ve w|th even the cond|t|ons
assoc|ated w|th the re|axed payment schedu|e v|z. short supp|y o equ|pment,
|rregu|ar changes |n make/ mode| o equ|pment, and non-co-operat|on by SlS L|ve
w|th PBs techn|ca| |nspect|on team. There were a|so severa| de|c|enc|es |n the
execut|on o the contract, notab|y w|th regard to de|ayed/ non-rece|pt o tapes or
QBP coverage and non-dep|oyment o st|pu|ated techn|ca| personne| by SlS.
We ound that the Host Broadcast Management Comm|ttee (HBMC) set up
by the PB d|d not ach|eve the des|red resu|ts. There was a |ack o consensus
among members o the HBMC, th|s u|t|mate|y resu|ted |n debatab|e dec|s|ons,
wh|ch avoured the |nterests o SlS L|ve. The M|n|stry o lnormat|on and
Broadcast|ng, as we|| as an Overs|ght Comm|ttee (cha|red by the M|n|ster, l&B and
co-cha|red by the M|n|ster o Law and Just|ce) wh|ch was const|tuted to mon|tor
the progress o act|v|t|es and exped|te dec|s|ons, chose to |arge|y accept the
proposa|s put orward by PB.
The |egacy va|ue o HDTv coverage o CWG-2010 to PB, both |n terms o
|mprovement o |nrastructure and deve|opment o |n-house sk|||s, was
|ns|gn||cant. PB part|c|pated |n product|on o on|y three events, as aga|nst the
|n|t|a| p|an o coverage o 10 out o 17 events |n-house. Tra|n|ng was |mparted to PB
sta on|y |n non-Games venues, and there was no ev|dence o such tra|n|ng be|ng
|mparted on the h|gh|y spec|a||sed OB vans used or Games product|on. Further,
PB a||ed to take advantage o the Cab|net approved scheme or upgradat|on o
Doordarshan to HDTv. Consequent|y, the tra|n|ng rece|ved by PB personne| rom
Contrary to the |ntent o the contract w|th PB, SlS L|ve outsourced a|most the
LxLCu1lvL SuMMA8?
SlS L|ve wou|d a|so become |arge|y redundant, |n the absence o HDTv
equ|pment |n PB.
(Chapter 28)
MTNL was appo|nted on "nom|nat|on bas|s" |n October 2009 or prov|d|ng
te|ecommun|cat|ons serv|ces or CWG-2010, on the prem|se that |t wou|d o||ow a||
norms and procedures or pub||c |nanc|a| accountab|||ty. However, we ound that
the process o award|ng the te|ecommun|cat|ons serv|ces contract was |awed.
MTNL, w|th OCs agreement, pushed through a vast|y more expens|ve
techn|ca| so|ut|on (lP/ MPLS) or the Broadcast v|deo Network and Broadcast
Aud|o Network, wh|ch had not been tested |n the prev|ous Games and was not
acceptab|e to the P|ghts Ho|der Broadcasters (PHBs) rom d|erent
Commonwea|th countr|es. Eventua||y, |n add|t|on to lP/ MPLS, the tested and
ex|st|ng techn|ca| so|ut|on ("po|nt-to-po|nt dark |bre") was prov|ded to meet the
requ|rements o PHBs. Even Doordarshan made use o on|y the dark |bre so|ut|on
or |ts v|deo broadcast requ|rements. Th|s so|ut|on wou|d have been vast|y
cheaper, w|th |ess cost to the pub||c exchequer.
The prem|se o the PS o||ow|ng pub||c |nanc|a| accountab|||ty norms was
|ett|soned, as the techn|ca| requ|rements were a|tered w|thout adequate
|ust||cat|on by MTNL to |eave on|y one techn|ca||y qua|||ed b|dder, the HCL/C|sco
team, there was, thus, no |nanc|a| compet|t|on. Essent|a||y, MTNL acted as a
condu|t or p|acement o a contract, on a back-to-back bas|s, |n a non-transparent
manner.
The est|mates or te|ecommun|cat|ons serv|ces prov|ded by MTNL at
d|erent po|nts o t|me were unre||ab|e and |acked adequate support, w|th the |na|
|nrastructure cost o Ps. 270.70 crore (exc|ud|ng taxes) approved by the Gol
be|ng more than e|ght t|mes the est|mates o approx|mate|y Ps. 33 crore or
Me|bourne CWG-2006. The contract awarded by MTNL to the HCL/ C|sco team
was or an even h|gher amount o Ps. 387.19 crore. C|ear|y, there was a substant|a|
|oss to the Gol on account o th|s dec|s|on.
MTNL d|d not prov|de rea||st|c and deta||ed bus|ness p|ans or strateg|es
regard|ng the post-CWG market potent|a| or the h|gh speed lP/ MPLS so|ut|on
obta|ned at cons|derab|e cost to the Gol (except or a reerence |n the tender
documents to the requ|rement o network capac|ty to hand|e 1,00,000 customers
each |n De|h| and Mumba|). Th|s, urther, con|rms the redundant nature o th|s
expens|ve techn|ca| so|ut|on.
(Chapter 29)
1e|ecommun|cat|ons Serv|ces for CWG-2010
LxLCu1lvL SuMMA8?
nea|th Serv|ces for CWG-2010
ln October 2009, the D|rectorate o Hea|th Serv|ces (DHS) |n the Department
o Hea|th and Fam||y We|are (DoHFW), GNCTD ormu|ated a Hea|th Act|on P|an
(HAP) or CWG-2010 or prov|d|ng ree med|ca| serv|ces to ath|etes, o|c|a|s,
spectators and others at the Games v|||age, venues and other |ocat|ons.
Wh||e hea|thcare or the ath|etes and the Games Fam||y was ensured, we
ound that the de|ayed |na||zat|on o the HAP, compounded by urther de|ays
dur|ng tender|ng/ award, was used to ac|||tate dev|at|ons rom st|pu|ated
procurement procedures or ensur|ng transparency and compet|t|on on
purported grounds o urgency.
The procurement o med|ca| equ|pment was marked by ser|ous
|rregu|ar|t|es. Desp|te CWG-2010 requ|rements hav|ng been |dent||ed we|| |n
advance |n the HAP, DHS o||owed mu|t|p|e procurement processes |n an arb|trary
manner |nc|ud|ng procurement through one-year Pate Contracts (PCs) |na||zed
|n June 2010, operat|ng o PCs o other hosp|ta|s, and use o "spot quotat|ons"
rom the open market. We ound that the rates or many o these |tems were
exorb|tant, by |nter se compar|son o rates or the same |tems between mu|t|p|e
modes o tender|ng. Further, 5 |tems o med|ca| equ|pment (est|mated at Ps. 5.89
crore) |nc|uded |n the HAP were not ordered at a||, wh||e an add|t|ona| 5 |tems
(wh|ch were not |nc|uded |n the HAP) were purchased or Ps. 1.10 crore.
A|though the Sports ln|ury Centre (SlC) at Sadar|ung Hosp|ta| was
|naugurated |n September 2010, |t was not u||y comm|ss|oned even |n November
2010. Many |tems o equ|pment were yet to be procured and/or |nsta||ed, and
tra|n|ng on use o equ|pment was yet to be u||y |mparted. There was a|so a severe
shortage o qua|||ed manpower or prov|d|ng necessary serv|ces.
The attempt to strengthen ambu|ance serv|ces |n t|me or CWG-2010
through dep|oyment o 150 ambu|ances |n PPP mode was a a||ure, s|nce the
contract w|th the se|ected concess|ona|re (Fort|s Hea|thcare) was term|nated or
a||ure to de||ver the ambu|ances |n t|me. ln our op|n|on, th|s eventua||ty arose
because o the DoHFWs a||ure to spec|y the exact nature o the ambu|ance
veh|c|e we|| |n advance. Government then acqu|red |ust 31 ambu|ances |n June/
August 2010 on d|rect procurement or the Games at a much h|gher pr|ce. Th|s
d|erence |n pr|ces was |arge|y due to h|gher spec||cat|ons or the med|ca|
equ|pment than that or|g|na||y env|saged. lt |s |nexp||cab|e why th|s was not
cons|dered ear||er. Further, 21 o these ambu|ances were Advanced L|e Support
(ALS) ambu|ances, wh|ch requ|re the serv|ces o tra|ned doctors and are genera||y
attached to hosp|ta|s. On|y 10 ambu|ances were Bas|c L|e Support (BLS)
ambu|ances, wh|ch pr|mar||y address the need o De|h| and |ts c|t|zens or a
LxLCu1lvL SuMMA8?
genera| ambu|ance serv|ce or |mmed|ate pre-hosp|ta| emergency response
serv|ces.
(Chapter 30)
E|ectron|cs Corporat|on o lnd|a Ltd. (EClL), a PS, was appo|nted by the
Gol |n May 2009 on "nom|nat|on bas|s" to prov|de an lntegrated Secur|ty System
(lSS) or CWG-2010. We ound that EClL prepared a h|gh|y |n|ated cost est|mate
(approved at Ps. 346 crore) wh|ch a||owed |t to make an exorb|tant pro|t o at |east
Ps. 126 crore. We recommend that |na| payments may be re|eased to EClL on|y
ater deta||ed exam|nat|on o actua| costs and an appropr|ate cert||cat|on by
EClLs statutory aud|tors ater a||ow|ng a pro|t marg|n o upto 20 per cent.
We ound that 176 Portab|e Exp|os|ve Detectors (PEDs) worth Ps. 39 crore
were wrong|y procured by EClL, and rema|ned unut|||sed, s|m||ar|y, 15,090 out o
18,700 PFlD tags or accred|ted veh|c|es a|so rema|ned unut|||sed.
MHA d|d not have an approved |egacy p|an or the ut|||sat|on/redep|oyment
o the secur|ty equ|pment, w|thout an "a pr|or|" |dent||cat|on o |tems as |egacy,
non-|egacy and consumab|es. Subsequent to CWG-2010, EClL |dent||ed |egacy
and non-|egacy equ|pment worth Ps. 272.65 crore, wh|ch had st||| not been
redep|oyed or ut|||sed.
(Chapter 31)
ln June 2008, MYAS |n|t|ated a scheme or "Preparat|on o lnd|an Teams or
CWG-2010" or |mpart|ng state o the art tra|n|ng, w|th we||-equ|pped |nrastructure
and other support|ng ac|||t|es, through the Sports Author|ty o lnd|a (SAl) and |ts
reg|ona| centres to a core group o 1286 e||te ath|etes, who wou|d be the meda|
probab|es or CWG-2010.
We ound that SAl ut|||sed on|y 30 per cent o the budget o Ps.678 crore
a||ocated or the per|od 2008-11. Further, there were substant|a| de|ays |n se|ect|on
o core probab|es, as we|| as |n appo|ntment o coaches and other support|ng
sta. The perormance parameters or |udg|ng |mprovement |n the perormance
o the core probab|es were dec|ded as |ate as 15 to 20 months ater
commencement o |mp|ementat|on o the scheme.
Integrated Secur|ty System (ISS) for CWG-2010
reparat|on of Ind|an 1eams for CWG-2010
LxLCu1lvL SuMMA8?
A tota| number o 284 tra|n|ng camps were he|d or 18 (17 norma| d|sc|p||nes
and one para sports). However, many d|sc|p||nes and sub d|sc|p||nes had not had
tra|n|ng camps dur|ng the year.
For support|ng tra|n|ng o core probab|es, SAl awarded 28 contracts/ orders
or procurement o |mported sports |tems and equ|pment at a cost o Ps. 40.12
crore dur|ng 2008-11. We ound ser|ous de|c|enc|es |n the procurement process.
A|| 28 orders were awarded on s|ng|e tender bas|s as "preerred |tems" w|thout
adequate |ust||cat|on. ln the absence o compet|t|ve tender|ng, we are unab|e to
der|ve assurance regard|ng cons|derat|ons o economy and transparency.
Further, th|s expend|ture was |arge|y unru|tu|, as many o the |tems were rece|ved
ater the tra|n|ng camps or dur|ng/ ater the Games, wh||e some |tems cou|d not be
|nsta||ed or were rece|ved at the wrong SAl reg|ona| centres or rema|ned otherw|se
unut|||zed.
On the |nrastructure ront, SAl a||ed to construct hoste|s |n |ve reg|ona|
centres, wh||e hoste|s constructed |n three reg|ona| centres cou|d not be ut|||sed
due to non-ava||ab|||ty o urn|ture, k|tchen and other support|ng ac|||t|es. Seven
out o e|ght sports sc|ence centres, a|| e|ght standard modern |tness centres, and
renovated/ upgraded ha||s at var|ous centres cou|d not be ut|||sed beore the
Games. Thus, out o unds o Ps. 78.63 crore re|eased or |nrastructure up-
gradat|on, expend|ture o Ps. 74.35 crore was not ru|tu| |n t|me or the Games.
Further, out o the env|saged Ps. 9.20 crore o sports sc|ence equ|pment, on|y a
neg||g|b|e amount o equ|pment was |n pos|t|on beore the Games.
There were de|c|enc|es |n |nanc|a| management, |nc|ud|ng non reund o
the unut|||sed amount o Ps. 45.50 crore by SAl and d|vers|on o Ps. 19.00 crore or
construct|on o the adm|n|strat|ve b|ock o SAl Hqrs bu||d|ng.
(Chapter 32)
lt |s acknow|edged that lnd|a hosted the |argest and among one o the most
successu| Commonwea|th Games |n De|h| |n October, 2010. lt |s |ndeed a
remarkab|e commentary on the nat|ons manager|a| and sport|ng capab|||t|es that
desp|te a mu|t|tude o advers|t|es |ead|ng to the actua| conduct o the games, lnd|a
emerged successu| both as hosts and as compet|tors.
lt may be reca||ed that wh||e subm|tt|ng a study done by th|s Department |n
Ju|y, 2009, we had strong|y recommended that Government shou|d rev|s|t the
mode| o governance or a smooth and successu| de||very o the games. Aud|t
cont|nues to ee| that ser|ous cogn|zance was not taken o the |ssues po|nted out
Conc|us|on
LxLCu1lvL SuMMA8?
|n that report, as t|me|y remed|a| act|on may have m|t|gated some o the adverse
attent|on that the conduct o the Games attracted.
Th|s report has commented upon the mode| o governance adopted or
CWG-2010, |n wh|ch author|ty was d|ss|pated, accountab|||ty was deused and
un|ty o command was not prov|ded or or o||owed. lt was a|so |nadv|sab|e to
have p|aced such huge pub||c unds at the d|sposa| o non-government o|c|a|s,
who were not w||||ng to heed to any adv|ce rom |normed government o|c|a|s.
The modus operand| observed over the ent|re gamut o act|v|t|es |ead|ng to
the conduct o the Games was: |nexp||cab|e de|ays |n dec|s|on mak|ng, wh|ch put
pressure on t|me||nes and thereby |ed to the creat|on o an art||c|a| or consc|ous|y
created sense o urgency. S|nce the target date was |mmovab|e, such de|ays
cou|d on|y be overcome by seek|ng, and ||bera||y grant|ng, wa|vers |n |a|d down
governmenta| procedures. ln do|ng so, contract|ng procedures became a very
obv|ous casua|ty. Many contracts were then enterta|ned based on s|ng|e b|ds,
and |n act, some o them were even awarded on nom|nat|on bas|s. Tak|ng
||bert|es w|th governmenta| procedures o the aorement|oned k|nd |ed to
e||m|nat|on o compet|t|on. A conc|us|on rom such act|on wh|ch seems obv|ous |s
that th|s cou|d |ndeed have even been an |ntended ob|ect|ve! E||m|nat|ng
compet|t|on |ed to huge avo|dab|e extra burden on the exchequer.
As per estab||shed procedure |n Government, whenever an outs|de ent|ty
makes a proposa| to the Government |nvo|v|ng budgetary comm|tments, the
concerned departments are requ|red to conduct an |n depth and de novo
exam|nat|on o such proposa|s. However, such |ndependent exam|nat|on o
proposa|s, espec|a||y regard|ng revenue generat|on by the OC and the
expend|tures ||ke|y to be |ncurred, as a|so the tota| |nanc|a| ||ab|||t|es to be borne
by the Government, were consp|cuous |n the|r absence. Appropr|ate due
d|||gence was consp|cuous|y absent at a|| |eve|s, wh||e scrut|n|s|ng and accord|ng
approva|s to expend|ture proposa|s.
A bas|c canon o |nanc|a| propr|ety |s that the expend|ture shou|d not pr|ma
ac|e be more than what the occas|on demands, and o|c|a|s charged w|th
stewardsh|p o Government unds must exerc|se the same v|g||ance |n respect o
expend|ture |ncurred rom pub||c moneys as a person o ord|nary prudence wou|d
exerc|se |n respect o expend|ture o h|s own money. Further, not on|y shou|d
transparency and a|r p|ay be exerc|sed, the pub||c at |arge shou|d perce|ve that
Government mon|es have been expended |n a a|r and transparent manner and
o|c|a|s w||| be he|d accountab|e or |apses. Government needs to take
appropr|ate measures to ||ve up to the h|gh expectat|ons |n th|s regard.
(Chapter 33)
LxLCu1lvL SuMMA8?
C
n
A
1
L
k
Introduct|on
2010
1he CommonwealLh Cames (CWC) ls a
mulLl-sporL evenL held every four years
among Lhe CommonwealLh CounLrles. 1he
Members of Lhe CommonwealLh Cames
lederaLlon (CCl), whlch ls responslble for
dlrecLlon and conLrol of Lhe CWC, are Lhe
71 CommonwealLh Cames AssoclaLlons
(CCA) from 33 counLrles.
1he xlx CommonwealLh Cames (CWC-2010)
were successfully hosLed ln uelhl from 3 Lo
14 CcLober 2010. 1hese Cames represenLed
Lhe largesL ever mulLl-sporL evenL held ln
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
lndla, surpasslng Lhe lx Aslan Cames (held
ln uelhl ln november- uecember 1982) and
Lhe l Aslan Cames (held ln uelhl ln March
1931).
1
1be offlclol Comes
moscot 5beto"
1be Comes loqo
1he hosLlng of CWC-2010 was Lhe
culmlnaLlon of Lhe bld ln May 2003 by Lhe
lndlan Clymplc AssoclaLlon (lCA), wlLh Lhe
supporL of Lhe CovernmenL of lndla (Col)
and Lhe CovernmenL of Lhe naLlonal CaplLal
1errlLory of uelhl (CnC1u), for hosLlng Lhe
xlx CommonwealLh Cames 2010. uelhl won
Lhe rlghL Lo hosL Lhe Cames wlLh 46 voLes
agalnsL 22 casL ln favour of Lhe oLher
blddlng clLy PamllLon, Canada, aL Lhe
CommonwealLh Cames lederaLlon (CCl)
Ceneral Assembly ln november 2003. A
PosL ClLy ConLracL (PCC) was slgned ln
november 2003 beLween Lhe
CommonwealLh Cames lederaLlon (CCl),
lCA, Col, CnC1u, and Lhe Crganlslng
CommlLLee (yeL Lo be formed).
1he organlsaLlon of Lhe Cames was Lo be
delegaLed by Lhe lCA Lo Lhe Crganlslng
CommlLLee. Powever, all Lhe lndlan parLles
were [olnLly and severally responslble for all
commlLmenLs, lncludlng flnanclal llablllLles
wlLhouL llmlLaLlon, relaLlng Lo Lhe
organlsaLlon and sLaglng of Lhe Cames. ln
parLlcular, Col underLook Lo bear Lhe
flnanclal llablllLy for hosLlng of Lhe Cames,
by underwrlLlng any shorLfall beLween
revenues and expendlLure.
1.3 Commonwea|th outh
Games - 2008, une
1he CommonwealLh ?ouLh Cames are a
small-scale verslon of Lhe CommonwealLh
Cames, deslgned for chlldren and young
people. 1he lll CommonwealLh ?ouLh
Cames Look place ln une, MaharashLra,
from 12 Lo 18 CcLober 2008, and were
vlewed, ln parL, as a LesL evenL for Lhe xlx
CommonwealLh Cames.
ChapLer 1 - lnLroducLlon
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
badmlnLon, boxlng, cycllng, gymnasLlcs, hockey, lawn bowls, neLball, rugby 7s,
shooLlng, squash, Lable Lennls, Lennls, welghLllfLlng and wresLllng.
ln addlLlon, 13 evenLs were conLesLed across four para sporLs vlz. aLhleLlcs,
powerllfLlng, swlmmlng and Lable Lennls for ellLe aLhleLes wlLh dlsablllLles under
Lhe lncluslve SporLs rogram.
1he evenLs ln 17 dlsclpllnes were held ln compeLlLlon venues ln 12 sLadlums
and Lralnlng/pracLlce venues ln 22 sLadlums/ complexes. ueLalls are glven ln
Annexe 1.1.
108 CommonwealLh Cames records and Lwo world records were seL aL Lhe Cames.
1rlple [umper from !amalca, 1recla-kaye SmlLh, was conferred Lhe presLlglous uavld
ulxon award.
WlLh flve gold medals ln swlmmlng, Allcla CouLLs (AusLralla) was Lhe mosL
successful aLhleLe. Cagan narang (lndla), who won four gold medals ln shooLlng,
was Lhe mosL successful male aLhleLe.
AusLralla was Lhe mosL successful CCA aL CWC-2010, wlLh 74 gold, 33 sllver and 48
bronze medals.
lndla gave lLs besL ever performance ln CommonwealLh Cames by securlng second
poslLlon ln Lhe medal Lally wlLh 38 gold, 27 sllver and 36 bronze medals. lL also won
all Lhe medals ln Lhe women's dlscus Lhrow evenL.
4336 aLhleLes and 2113 offlclals represenLlng 71 CCAs parLlclpaLed ln CWC-2010.
CompeLlLlons were held ln 17 sporLs dlsclpllnes vlz. archery, aLhleLlcs, aquaLlcs,
n|gh||ghts of kIk Commonwea|th Games 2010
Ma[or assets created]upgraded
sporLlng venues,
ConsLrucLlon of several flyovers and roads and an elevaLed corrldor,
upgraded meLro connecLlvlLy and alrporL lnfrasLrucLure,
lnducLlon of addlLlonal low-floor buses (AC and non-AC), and consLrucLlon of new/
upgraded bus queue shelLers
SLreeLllghLlng, and
8esLoraLlon of herlLage monumenLs (Safdar[ung Lomb, urana Clla complex,
Pumayun's Lomb complex, group of monumenLs aL PazraL nlzamuddln complex and
Lodl Carden eLc)
CreaLlon of world class sporLlng lnfrasLrucLure Lhrough renovaLlon/ upgradaLlon of
1.4 Crgan|sat|on of CWG-2010 - a comp|ex, |ong-term and
mu|t|-d|mens|ona| pro[ect
1he organlsaLlon of Lhe Cames (and, lndeed, any oLher mulLl-sporL lnLernaLlonal evenLs)
consLlLuLes a complex, long-gesLaLlon, mulLl-dlmenslonal pro[ecL wlLh numerous
parLlclpanLs/ acLlvlLles.
Governance and Management for CWG-
2010 |nvo|ved:
uLLlng ln place adequaLely empowered

governance sLrucLures,
ldenLlflcaLlon of acLlvlLles, and
dellneaLlon of responslblllLles of dlfferenL
agencles,
lundlng and budgeLlng arrangemenLs,
SeLLlng up of Lhe Crganlslng
CommlLLee" (CC) for conducLlng Lhe
Cames,
Deve|opment of sport|ng venues |nvo|ved:
and co-ordlnaLlon, and

lannlng for legacy.
llnallsaLlon of 17 sporLlng dlsclpllnes (13
mandaLory dlsclpllnes - as per CCl
guldellnes - and 2 opLlonal dlsclpllnes -
Lennls and archery),
ldenLlflcaLlon of sLadlums as compeLlLlon
venues and Lralnlng venues,
ArrangemenLs for monlLorlng, overslghL
Deve|opment
of Sport|ng
Venues
Governance
and
Management
Conduct
of the Games
Cther
Serv|ces
C|ty
Improvements
Accommodat|on
Arrangements
for Games
Iam||y
llqote 1.1 - Otqoolsotloo of cwC 2010
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
C|ty Improvements |nvo|ved:
venues and renovaLlon/ upgradaLlon of

exlsLlng venues,
venue bulldlng, LesLlng and hand-over Lo
Lhe Crganlslng CommlLLee (CC) ln Llme
for Lhe Cames.
1ransporL lmprovemenLs - roads and
flyover pro[ecLs Lo lmprove connecLlvlLy,
road slgnages, Lrafflc managemenL,
purchase of buses, consLrucLlon of bus
depoLs and bus queue shelLers eLc,
Clvlc amenlLles - sLreeL llghLlng, publlc
LolleLs, sLreeL furnlLure", sLreeLscaplng
and beauLlflcaLlon, resLoraLlon of
herlLage sLrucLures,
1ourlsL accommodaLlon and faclllLaLlon,
and
ower supply and oLher lnfrasLrucLure
arrangemenLs.
llnallslng plans for consLrucLlon of new Conduct of CWG-2010 |nvo|ved:
Cther serv|ces |nc|uded:
SporLs and Lechnology arrangemenLs,

Ceremonles (Cueen's 8aLon 8elay and
Cpenlng and Closlng Ceremonles),
CaLerlng arrangemenLs for aLhleLes,
offlclals and oLhers,
Workforce and volunLeers,
Cames brandlng and lmage and look,
and
8evenue generaLlon Lo offseL Lhe cosL of
organlslng CWC-2010.
SecurlLy and law and order
arrangemenLs,
PealLh servlces for Lhe Cames famlly,
and
8roadcasLlng and medla coverage for Lhe
Cames.
Cames lannlng and overlays,
1he organ|sat|on of CWG-2010 was a
mammoth exerc|se. Notw|thstand|ng
the |ssues and concerns ra|sed |n th|s
Aud|t keport, the Games were
successfu||y conducted and rece|ved
h|gh pra|se nat|ona||y and
|nternat|ona||y. Many of the ob[ect|ves
of host|ng CWG-2010 - |n terms of
bu||d|ng state of the art sport|ng
|nfrastructure as a |ast|ng |egacy, and
|arge sca|e |mprovement of c|ty
|nfrastructure - were |arge|y ach|eved.
We acknow|edge the tremendous
efforts put |n by var|ous agenc|es (both
Government and non-Government) |n
work|ng to very t|ght dead||nes and
under d|ff|cu|t c|rcumstances to make
CWG-2010 a grand success.
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
C
n
A
1
L
k
Study keport on 'reparedness for the
kIk Commonwea|th Games 2010'
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
Z
ln !uly 2009, Lhe CompLroller and AudlLor
Ceneral of lndla presenLed a SLudy 8eporL
Lo Lhe CovernmenL of lndla on
'reparedness for Lhe xlx CommonwealLh
Cames 2010'. 1he ob[ecLlve of Lhe SLudy
8eporL was Lo assess Lhe progress of
pro[ecLs and preparedness of dlfferenL
agencles for organlslng Lhe Cames, and Lo
ldenLlfy slgnlflcanL rlsks LhaL needed Lo be
addressed.
1he SLudy 8eporL, whlch was Lhe flrsL of lLs
klnd produced by us, was lnLended Lo
provlde an ald Lo Lhe LxecuLlve and Lhe
organlsers ln monlLorlng progress and ln
maklng mld-course correcLlons. lL was
prepared Lo serve as a checkllsL and a ready
reckoner Lo benchmark furLher progress
Lowards preparlng Lhe lnfrasLrucLure and ln
sLaglng Lhe Cames.
lor Lhls 8eporL, we conducLed our fleld
work beLween March and May 2009, and
collecLed phoLographlc evldence Lo record
Lhe sLaLus of consLrucLlon as of 13 May and
1-2 !uly, 2009. rogress of works beLween
May and !uly 2009 was also approprlaLely
lncorporaLed, based on avallable and
verlflable lnformaLlon.
1he maln flndlngs and recommendaLlons of
Lhe SLudy 8eporL were as follows:
1he scope for furLher delays and
sllppages ln mllesLones no longer exlsLed,
glven Lhe lmmoveable deadllne of
CcLober 2010. ln vlew of Lhe complexlLy
and mulLlpllclLy of acLlvlLles and
organlsaLlons lnvolved and Lhe progress
Llll daLe, Lhere was a need Lo reLhlnk Lhe
governance model for Lhe Cames
ro[ecL.
Whlle we wlLnessed renewed vlgour and
redoubled efforLs by Lhe agencles
Lowards Lhe close of our engagemenL,
much Llme had been losL and lL was
lmperaLlve Lo move forward wlLh Lhe
new-found sense of urgency, Lempered
by Lhe reallsaLlon LhaL crashlng of
Llmellnes and bunchlng of declslons
carrled wlLh lL Lhe helghLened rlsk Lo
Lransparency and accounLablllLy.
plannlng documenLs and operaLlonal

plans lmmedlaLely. lurLher, lL should
expedlLe approval of flnal venue deslgns
and deLalled speclflcaLlons. lreezlng all
speclflcaLlons (howsoever mlnor) ln all
respecLs for all pro[ecLs and works should
no longer be delayed.
1here was conslderable scope for
lmprovemenL ln Lhe documenLaLlon and
flllng sysLems wlLhln Lhe CC.
ALLenLlon should be focused on Lhe
games venues ldenLlfled by us as
medlum rlsk and hlgh rlsk. Lven Lhe
revlsed deadllnes for compleLlon would
be challenglng, conslderlng Lhe poor
progress of work Llll daLe.
1he Cames vlllage ro[ecL had run lnLo
several hurdles and requlred close
monlLorlng and overslghL Lo ensure
successful and Llmely compleLlon.
lurLher, Lhe bunchlng of Lhe laLesL
schedules of acLlvlLles from !une 2010
onwards would, ln our oplnlon, puL
subsLanLlal pressure on Lhe
admlnlsLraLlve and monlLorlng resources
of uuA Lo ensure Llmely compleLlon,
wlLhouL compromlses on cosL or quallLy.
Many of Lhe brldge and flyover pro[ecLs
assessed by us as crlLlcal on accounL of
Lhelr locaLlon were aL hlgh/ medlum rlsk,
due Lo slow progress, Lhree such pro[ecLs
had been dellnked from Lhe Cames
ro[ecL. lallure Lo address Lhese rlsks ln
Llme would lead Lo Lrafflc overload on
roads belng managed Lhrough sub-
opLlmal soluLlons llke reducLlon,
dlverslon and resLrlcLlon of non-Cames
Lrafflc,
1he CC should flnallse Lhe pendlng baslc
envlsaged as a revenue neuLral pro[ecL,

glven Lhe sLaLe of documenLaLlon
supporLlng Lhe revenue generaLlon
esLlmaLes, we were unable Lo derlve an
assurance LhaL Lhe organlsaLlon of Lhe
Cames would be revenue neuLral
(especlally regardlng Lhe lncreased
esLlmaLes of revenue).
Conslderable work remalned Lo be done
ln key ouLsourclng arrangemenLs for
Pu1v producLlon and broadcasLlng and
relaLed areas. Also, CC had noL
developed a comprehenslve legacy plan
for Lhe overall legacy and long-Lerm
lmpacL of Lhe Cames.
1he LxecuLlve Summary of Lhe SLudy 8eporL
ls appended as Annexe-2.1.
We found LhaL Lhe drafL audlL reporL on
preparedness for Lhe Cames was revlewed
by Lhe CommlLLee of SecreLarles (CoS) ln
!uly 2009. 1he maln emphasls aL Lhls
meeLlng was ln respondlng Lo Lhe audlL
flndlngs, raLher Lhan uslng Lhem as a
benchmark for monlLorlng progress and
maklng mld-course correcLlons. MlnlsLrles
and ueparLmenLs were asked Lo provlde
necessary documenLs Lo audlL Lo enable Lo
Lhem Lo share Lhe confldence LhaL Lhe
MlnlsLry/ ueparLmenLs concerned have on
compleLlon of works enLrusLed Lo Lhem ln a
Llme bound manner." lurLher, lL was
lndlcaLed LhaL Lhe CC may Lake Lhe
asslsLance of markeLlng agencles Lo glve a
convlnclng reply ln Lhe LxlL Conference wlLh
regard Lo Lhe audlL concerns ln respecL of
revenue pro[ecLlons.
AlLhough Lhe Cames pro[ecL was
ChapLer 2 - SLudy 8eporL on 'reparedness for Lhe xlx CommonwealLh Cames 2010'
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
Many of the |ssues and recommendat|ons
h|gh||ghted by us |n our Study keport were
not adequate|y addressed by the
concerned agenc|es |n a t|me|y fash|on, as
deta||ed subsequent|y.
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
1he CAC had also prepared a SLudy 8eporL
on Lhe sLaLus of 8allway ro[ecLs relaLlng Lo
CWC ln Aprll 2010, whlch focused on Lhe
exLenL of compleLlon of Lhe 8allway ro[ecLs
ldenLlfled for compleLlon before Lhe
commencemenL of Lhe Cames and
hlghllghLed areas of rlsk LhaL needed Lo be
addressed by Lhe 8allway AdmlnlsLraLlon.
Cur lnlLlal revlew of 8allway pro[ecLs ln
!anuary-lebruary 2010 revealed subsLanLlal
delays aL every sLage of Lhe plannlng
process, approvals for Lhe pro[ecLs,
preparaLlon of esLlmaLes, provlslon of
deslgns and drawlngs, execuLlon of works
and monlLorlng. Cur subsequenL verlflcaLlon
of Lhe sLaLus of Lhe 8allway pro[ecLs ln Aprll
2010 revealed saLlsfacLory progress boLh ln
consLrucLlon of rall over/under brldges and
developmenL of Lhe faclllLles aL Lhe rallway
sLaLlons. We were especlally hearLened Lo
see Lhe progress ln lnfrasLrucLure works and
provlslon of passenger amenlLles aL new
uelhl 8allway SLaLlon, conslderlng LhaL
abouL 290 Lralns pass Lhrough Lhls sLaLlon
every day wlLh approxlmaLely flve lakh
passengers commuLlng on a dally basls.
All Lhe ma[or acLlvlLles relaLlng Lo makeover
of new uelhl 8allway SLaLlon were
compleLed before Lhe Cames and wlLhln a
LlghL budgeL of 8s. 44.68 crore.
ChapLer 2 - SLudy 8eporL on 'reparedness for Lhe xlx CommonwealLh Cames 2010'
New ue/hi koi/woy 5totion in time for the 6omes
C
n
A
1
L
k
Aud|t Approach
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
J
3.1.2 Aud|t of the
Crgan|s|ng Comm|ttee (CC)
1he consLlLuLlon of Lhe CC ln lebruary 2003
sLlpulaLed audlL of lLs flnanclal sLaLemenLs
by CharLered AccounLanLs appolnLed by Lhe
CC, and audlL of lLs flnanclal sLaLemenLs
upLo 2007-08 was carrled ouL as such.
Cver Lhe perlod of Lhree flnanclal years
from 2004-03 Lo 2006-07, Lhe Col released
1
loans LoLalllng 8s. 127.31 crore , agalnsL
whlch expendlLure of 8s. 123.33 crore was
lncurred by Lhe CC (largely on Cames
PosLlng Llcense lee, expendlLure on Lhe
closlng ceremony componenL of Melbourne
CWC-2006 and oLher lLems). lrom 2007-08
onwards, Lhe volume of loans glven Lo Lhe
CC lncreased subsLanLlally.
ln May 2007, Lhe MlnlsLry of ?ouLh Affalrs
and SporLs (M?AS) requesLed Lhe CAC for a
concurrenL audlL" of Lhe Crganlslng
CommlLLee from Aprll 2008. Such
concurrenL audlL ls an lnLernal audlL
funcLlon and, Lhus, Lhe responslblllLy of Lhe
LxecuLlve.
1hls was enLrusLed Lo
Lhe CAC ln Aprll 2008. AudlL of Lhe
ConcurrenL audlL ls noL Lhe
mandaLe of Lhe CAC. ConsequenLly, ln !uly
2
2007, we requesLed M?AS for enLrusLmenL
of Lhe exLernal audlL of Lhe CC Lhrough Lhe
3
MlnlsLry of llnance .
3.1 Aud|t Arrangements
3.1.1 I|nanc|a| and 1ransact|on]
Comp||ance Aud|t
Agencles, oLher Lhan Lhe Crganlslng
CommlLLee, fall wlLhln Lhe normal audlL
[urlsdlcLlon of Lhe CompLroller and AudlLor
Ceneral of lndla (CAC). 1he scope, exLenL
and frequency of audlLs of Lhese agencles ls
declded Lhrough rlsk assessmenLs, based
on expendlLure lncurred, crlLlcallLy/
complexlLy of acLlvlLles, assessmenL of
lnLernal conLrols, and prevlous audlL
flndlngs. An annual audlL plan ls formulaLed
Lo conducL audlL on Lhe basls of such rlsk
assessmenL.
noLable flndlngs presenLed ln Lhe CAC's
AudlL 8eporLs lncluded shorLcomlngs ln Lhe
ball-ouL package provlded by uuA Lo Lhe
developer of Lhe resldenLlal complex aL Lhe
Cames vlllage (reporLed Lhrough paragraph
9.1 of AudlL 8eporL no. 23 - unlon
CovernmenL (Clvll) AuLonomous 8odles - of
2009-10).
AfLer compleLlon of audlL of each unlL,
lnspecLlon 8eporLs conLalnlng audlL flndlngs
are lssued Lo Lhe head of unlL, for Lhelr
responses wlLhln one monLh. 1he audlL
flndlngs are elLher Lhen seLLled, or furLher
acLlon for compllance ls advlsed. Cnly
lmporLanL audlL flndlngs, where large
governmenL expendlLure has been lncurred,
are separaLely processed for lncluslon ln Lhe
CAC's AudlL 8eporLs, whlch are submlLLed
Lo Lhe resldenL of lndla under ArLlcle 131
of Lhe ConsLlLuLlon of lndla.
1
2
3
lo oJJltloo, CNc1u ptovlJeJ qtoots of ks. 29.54 ctote.
uoJet 5ectloo 20 of tbe cAC's (uotles, lowets ooJ
cooJltloos of 5etvlce) Act, 1971
As pet tbe opptoveJ ptoceJote fot eottostmeot of ooJlt
of ootooomoos boJles ooJ ootbotltles cltcoloteJ by
Mlolstty of lloooce oo 12 Iooooty 2008 to oll Mlolsttles/
uepottmeots of Col.
3.2 Aud|t Cb[ect|ves
1hls audlL of Lhe xlx CommonwealLh Cames
was comprehenslve ln naLure, coverlng
compllance and performance lssues relaLed
Lo Lhe preparaLlon of Lhe lnfrasLrucLure and
organlslng of Lhe Cames, and bullds on Lhe
flndlngs and recommendaLlons of our
3.3 Aud|t Scope and Coverage
1he scope of our audlL covered Lhe perlod
from May 2003 (submlsslon of Lhe bld for
hosLlng Lhe xlx CommonwealLh Cames) Lo
uecember 2010. 1he maln acLlvlLles and
agencles covered by us ln Lhls audlL are
summarlsed ln 1able 3.1.
4
LransacLlons of Lhe CC for Lhe years 2003-
07 was carrled ouL ln november/ uecember
2008. lollowlng Lhls audlL, an lnspecLlon
8eporL was lssued ln March 2009 Lo Lhe CC
and Lhe MlnlsLry of ?ouLh Affalrs and SporLs.
1he audlL of LransacLlons for 2007-08 and
2008-09 was carrled ouL ln uecember 2008
and March/ Aprll 2010, and Lhe lnspecLlon
8eporLs lssued ln May 2009 and May 2010
respecLlvely.
AudlLs of Lhe flnanclal sLaLemenLs of Lhe CC
for 2008-09 and 2009-10 were conducLed
lndependenLly and SeparaLe AudlL 8eporLs
(SA8s) lssued ln !uly 2010 and Aprll 2011
respecLlvely.
earller SLudy 8eporL of !uly 2009 on
preparedness for CWC-2010.
1he maln ob[ecLlves of our audlL were Lo
assess Lhe followlng:
Adequacy and effecLlveness of Lhe hlgh-
level governance sLrucLures for overall
sLewardshlp, plannlng, co-ordlnaLlon,
and monlLorlng of Lhe Cames ro[ecL and
lLs dlfferenL componenLs, parLlcularly ln
vlew of Lhe mulLlpllclLy of agencles
lnvolved,
LffecLlveness and efflclency of agencles
ln plannlng, execuLlng and dellverlng Lhe
Cames and assoclaLed lnfrasLrucLure
pro[ecLs and ln organlslng Lhe Cames,
roprleLy, economy, Lransparency and
problLy (lncludlng compllance wlLh
relevanL rules and regulaLlons and
accepLed besL pracLlces) ln procuremenL
of goods and servlces by dlfferenL
agencles,
8obusLness and prudence of budgeLary
and flnanclal managemenL for Lhe Cames
ro[ecL, and
Adequacy and effecLlveness of lnLernal
conLrols and overslghL mechanlsms for
ensurlng successful dellvery of Lhe
Cames wlLhln pre-deLermlned Llme and
cosL budgeLs and Lo sLlpulaLed quallLy
sLandards.
ChapLer 3 - AudlL Approach

3.1.3 Study keports on reparedness
for CWG-2010.
ln addlLlon Lo Lhe LransacLlon and flnanclal
audlLs menLloned above, we also presenLed,
ln !uly 2009, a SLudy 8eporL on Cames
preparedness, whlch also covered Lhe
acLlvlLles of Lhe CC, as well as a SLudy
8eporL ln Aprll 2010 on preparedness of Lhe
lndlan 8allways for acLlvlLles relaLed Lo
CWC-2010, Lhe maln flndlngs of Lhese SLudy
8eporLs are summarlsed ln ChapLer 2 of Lhls
8eporL. 1hese SLudy 8eporLs were lnLended
as alds Lo managemenL for monlLorlng
progress on a concurrenL basls, Lo be
followed by post focto audlLs of
expendlLure.
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
4
uoJet 5ectloo 14 of tbe cAC's ulc Act
Cvera|| |ann|ng and Management
Area Ma|n Agenc|es Covered
Venue Deve|opment
Games V|||age
C|ty Infrastructure ro[ects
Crgan|sat|on of the Games
Crgan|sat|on of CW outh Games, 2008
une
reparat|on of Ind|an 1eams
Med|a and 8roadcast|ng
Cthers
MinisLrics/ DcparLmcnLs of Lhc Gol and GNCTD,
and inLcr-MinisLcrial/ DcparLmcnLal CommiLLccs, OC
Vcnuc owncrs (SporLs AuLhoriLy of lndia, GNCTD,
MCD, NDMC, DDA, DU, JMl, AlTA, DPS RK Puram, and
CRPF) and oLhcr implcmcnLing agcncics (CPWD)
DDA
PWD (GNCTD), NDMC, MCD, DJB, DTC, DTTDC,
PPCL, DTL
OC
Agcncics of Lhc GovcrnmcnL of MaharashLra and
Punc Municipal CorporaLion/ Pimpri Chinchwad
Municipal CorporaLion
MYAS and SAl
MinisLry of lnformaLion and BroadcasLing and
Prasar BharaLi
MinisLry of Homc Affairs, Dclhi Policc, EClL,
MinisLry of HcalLh and Family Wclfarc, DirccLoraLc
of HcalLh Scrviccs, GNCTD, MTNL and TClL
3.4 Aud|t Methodo|ogy
We conducLed our fleld audlL beLween
AugusL and uecember 2010 (wlLh a
suspenslon of Lhe audlL from mld-
SepLember Lo mld-CcLober 2010 Lo avold
lnconvenlence Lo Lhe agencles durlng and
around Lhe Cames perlod). We held an
enLry conference wlLh Lhe MlnlsLry of ?ouLh
Affalrs and SporLs (M?AS) and
represenLaLlves of oLher agencles (excepL
Lhe CC) on 1 november 2010.
Cur audlL meLhodology covered scruLlny of
records and documenLs of dlfferenL
agencles, lnLervlews wlLh concerned
offlclals and persons, and physlcal
lnspecLlon of slLes, lncludlng collecLlon of
phoLographlc evldence. AudlL requlslLlons
were lssued, seeklng records, lnformaLlon
and clarlflcaLlons (where necessary).
rellmlnary audlL observaLlons were
communlcaLed Lo Lhe agencles aL
approprlaLe levels, seeklng Lhelr responses.
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
1h|s report focuses on |ssues, wh|ch
wou|d be of |nterest from the overa||
perspect|ve of the organ|sat|on and
management of the Games ro[ect.
Cther |ssues and concerns, wh|ch focus
on agency-spec|f|c aspects, wou|d be
reported separate|y, through other
CAG's Aud|t keports and Inspect|on
keports, depend|ng on the|r mater|a||ty
and s|gn|f|cance.
1oble J.1 - Aqeocles coveteJ lo AoJlt
3.S Scope L|m|tat|on
Cur flndlngs on Lhe funcLlonlng/acLlvlLles of
Lhe Crganlzlng commlLLee should be read ln
Lhe conLexL of Lhe followlng:
Clven Lhe sLaLe of documenLaLlon (refer
para 7.2.3), we could noL flnd evldence
LhaL documenLs produced for audlL were
compleLe and auLhenLlc ln all cases.
We could noL derlve any assurance
regardlng compleLeness of Lhe number
of conLracLs/agreemenLs/work orders
eLc. enLered lnLo by CC.
1lll March 2011, CC could noL provlde
lnformaLlon on conLracL wlse paymenLs
made Lo vendors, llmlLlng our scruLlny Lo
ueLalls of Lhe audlL processes/

meLhodologles followed are lndlcaLed ln
Annexe - 3.1.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) S0
Lhe conLracLed amounL raLher Lhan Lhe
acLual paymenLs.
We followed Lhe formal reporLlng
channels ln Lhe CC Lo obLaln records and
communlcaLe flndlngs. Powever, we
noLlced LhaL lnformal reporLlng llnes
exlsLed Lo Lhe offlces of Shrl Suresh
kalmadl, ex-Chalrman, Shrl LallL 8hanoL,
SecreLary Ceneral and Shrl v.k. verma,
uC-CC. We do noL have access Lo Lhe
documenLs/ flles/ records generaLed
/malnLalned Lhrough Lhese lnformal
reporLlng channels and Lhelr
consequenLlal lmpacL on Lhe conLracLlng
and declslon maklng.
Cn cerLaln lssues, ln addlLlon Lo Lhe
offlclal reply, we recelved several oLher
replles from lndlvlduals assoclaLed wlLh
Lhe CC. We have noL LreaLed Lhelr replles
as Lhe offlclal vlew of Lhe CC.
llnal paymenLs ln respecL of mosL of Lhe
venues have sLlll noL been made, desplLe
lapse of conslderable Llme slnce Lhe
concluslon of Lhe Cames. 1hese are llkely Lo
have slgnlflcanL lmpacL on Lhe overall cosL
of Lhe Cames pro[ecL. 1hese would be
covered ln subsequenL audlLs.
Draft agency-spec|f|c aud|t f|nd|ngs were

commun|cated through "Statements of
Iacts" (SCIs) |n Ianuary- Iebruary 2011
to the concerned agenc|es for the|r
responses. Lx|t Conferences were a|so
he|d w|th the concerned agenc|es to
d|scuss the ma|n aud|t f|nd|ngs. 1he
responses of these agenc|es at var|ous
|eve|s have been exam|ned and
cons|dered, as appropr|ate, |n th|s
report.
We acknow|edge the co-operat|on and
ass|stance extended by the M|n|str|es]
Departments, Crgan|z|ng Comm|ttee
and other agenc|es of GoI and GNC1D
dur|ng the conduct of th|s aud|t.
8
a
c
|
g
r
e
a
a
S
e
c
L
l
o
n

-

A
C
n
A
1
L
k
Governance and
Mon|tor|ng Arrangements
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4
Prime Ministerio/ opprovo/ for the lO4 to bid, in Moy 200l, for cw6-2010 wos processed
by MY45, without even obtoininq the lO4 bid document. ln 5eptember 200l, cobinet
opprovo/ wos obtoined for 6ol to underwrite the shortfo// between revenue ond
expenditure {o deficit quorontee) without ony cop. 4/thouqh Mol did not support the
proposo/ for such underwritinq without o cop on 6ol /iobi/ity, MY45 fe/t thot the shortfo//
wos on un/ike/y event {bosed on the projections of revenue, expenditure, ond surp/us by
the lO4), ond it wos not possib/e to put o cop on 6ol's /iobi/ity. 8y controst, the competinq
bid from nomi/ton, conodo for cw6-2010 invo/ved o deficit quorontee on/y from the
nomi/ton city counci/, ond the 6overnments of conodo ond Ontorio Province did not
provide ony such quorontee, nor did they oqree to be porties to the nost city controct.
1hus, the commitment of 6ol, in conjunction with 6Nc1u, to underwrite ony shortfo//
between revenue ond expenditure wos critico/ to the success of the lO4 bid for cw6-2010.
ln the cose of lndio, thus, the 6omes become the property of the notion, rother thon mere/y
thot of the lO4. 1his wos inodequote/y ref/ected in the subsequent constitution of the
Orqonisinq committee {Oc).
1he unique cho//enqe of monoqinq ond monitorinq the octivities of o mu/tip/icity of
oqencies for de/iverinq the 6omes Project wos best met by entrustinq its stewordship to o
sinq/e point of outhority ond occountobi/ity. 1he outhority shou/d hove been occorded
odequote mondote to ensure o// de/iverob/es in time, to cost, ond to specified quo/ity
stondords. lurther, in view of the 6overnment quorontee for meetinq the cost of the
6omes, it wos essentio/ for such stewordship to be fu//y under 6overnment contro/.
nowever, this mode/ of monoqement or finoncio/ contro/ wos not imp/emented for the
6omes Project.
1he bid document of Moy 200l envisoqed the Oc os o 6overnment-owned reqistered
society, with the choirmon of the Oc xecutive 8oord {8) beinq o qovernment oppointee,
ond the lO4 President beinq the 8 vice-choirmon. nowever, the Oc wos u/timote/y set up
os o non-6overnment reqistered society, with the lO4 President, 5hri 5uresh ko/modi os
the choirmon of the Oc 8. 1his chonqe wos orchestroted throuqh o chrono/oqy of events,
commencinq with o document tit/ed os on "updoted bid" with the dote/ine of uecember
200l. 1his hod no /eqo/ sonctity or re/evonce, since the 6omes hod o/reody been bid ond
oworded to ue/hi in November 200l. 1his document indicoted the Oc os o non-
6overnment society ond o/so removed references to the lO4 President os 8 vice-
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 4 - Covernance and MonlLorlng ArrangemenLs
choirmon. 1hese chonqes were objected to, ond hiqh/iqhted, by the erstwhi/e Minister,
Y45, /ote 5hri 5uni/ uutt in November 2004 in correspondence with 5hri 4rjun 5inqh
{choirmon, 6oM) ond the Prime Minister. 1hese objections were iqnored, ond 5hri
ko/modi's views prevoi/ed. ln our view, the decision to oppoint 5hri ko/modi os the Oc
choirmon, bosed on o PMO recommendotion, foci/itoted the conversion of the oriqino//y
envisoqed 6overnment-owned Oc into o body outside 6overnmento/ contro/, without
commensurote occountobi/ity to 6overnment ond concomitont contro/s to ensure
propriety ond tronsporency. 1his wos despite fu// finoncio/ quorontee ond fundinq from
6overnment. 1he /ote 5hri 5k 4roro, 5ecretory, MY45 hod, in 2007, hiqh/iqhted the /ock of
effective outhority with 6ol representotives on the Oc 8, ond conc/uded thot o// decision-
mokinq wos concentroted with the choirmon. ne suqqested mu/tip/e options - o//owinq
Oc to retoin its f/exibi/ity ond finoncio/ outonomy, but without direct finoncinq by 6ol,
empowerinq the 8 ond providinq 6ol with contro/ over hiqh-vo/ue finoncio/
commitments, or broodbosinq the Oc's 8 on the pottern of the 1982 4sion 6omes with
representotion from 6ol ond 6Nc1u ot ministerio/ /eve/. 5hri Moni 5honkor 4iyor, the
erstwhi/e Minister, Y45, o/so hiqh/iqhted the Ministry's ineffective position in exercisinq
contro/ over the Oc to the PMO ond 6oM in 2007. 1his wos, however, met with stronq
resistonce from the choirmon, Oc ond did not yie/d the desired resu/ts.
1he obsence of o sinq/e point of outhority ond occountobi/ity for ensurinq the successfu/
conduct of cw6-2010 ond the /ock of o c/eor qovernonce structure /ed to od hoc creotion of
o mu/tip/icity of co-ordinotion committees thot were creoted, disbonded, ond
reconstituted ot different points of time. 1his opprooch wos not methodico/, consistent
ond effective, ond o/so /ed to comp/ete diffusion of occountobi/ity. 1his wos un/ike the
structure for the Me/bourne cw6-200, where the victorion 6overnment oversow the
p/onninq ond de/ivery of the 6omes throuqh o specio//y formed cobinet committee. 1he
Minister for commonweo/th 6omes wos specifico//y empowered ond responsib/e under
the commonweo/th 6omes 4rronqements 4ct 2001.
1here were chonqes in the qovernonce structure of the Oc from October 2009 onwords,
with the oppointment of o cO for the Oc, deputotion of senior 6overnment officers to the
Oc, ond the constitution of o linonce 5ub-committee of Oc for scrutinisinq proposo/s
before submission to the Oc 8. 1his fino//y cu/minoted in 6ol's oppointment of 10 senior
officers in 4uqust 2010 to co-ordinote, monitor ond toke immediote decisions for eoch
competition venue. nowever, these octions were /orqe/y in the noture of emerqency fire-
fiqhtinq meosures. or/y oction on these /ines, with o sinq/e point of outhority ond
occountobi/ity, cou/d hove mode the 6omes de/ivery process /ess poinfu/ ond more
streom/ined ond occountob/e.
4.1 Award of CWG-2010 to De|h|
1he chronology of evenLs leadlng upLo Lo Lhe award of Lhe xlx CommonwealLh Cames, 2010
Lo uelhl ls summarlsed below:
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Iune-Iu|y 2002
May 2003
August 2003
September 2003
November 2003
Col conveyed lLs no ob[ecLlon Lo lCA maklng a bld presenLaLlon
aL ManchesLer Lo bld for Lhe Cames and also subsequenLly
(lebruary 2003) relLeraLed lLs supporL for Lhe proposal, ln
connecLlon wlLh a prellmlnary presenLaLlon Lo Lhe CCl LxecuLlve
8oard
lCA submlLLed a formal bld for Lhe Cames Lo Lhe CCl
vlslL of CCl LvaluaLlon Commlsslon Lo uelhl
CuaranLees glven by Col, LL. Covernor, uelhl and Chlef MlnlsLer,
CnC1u Lo bear all cosLs and underwrlLe any shorLfall beLween
revenues and expenses
CCl Ceneral Assembly voLed for alloLmenL of xlx CWC Lo uelhl,
PosL ClLy ConLracL (PCC) slgned
granLs of 8s. 318 crore and revenue from

sale of flaLs of 8s. 477 crore,
caplLal and repalr/ renovaLlon
expendlLure on sLadla of 8s. 1,030 crore,
clLy beauLlflcaLlon and addlLlonal
servlces of 8s. 130 crore,
1he commenLs of Lhe MlnlsLry of llnance on
Lhe drafL CablneL noLe were focused on Lhe
relaLlvely mlnlscule expendlLure of 8s. 1.61
crore on Lhe blddlng process, raLher Lhan on
Lhe larger (and more serlous) flnanclal and
oLher lmpllcaLlons of Lhe bld on Col. ln facL,
Lhe lCA bld speclfled LhaL for conducLlng
Lhe Cames, Lhe CenLral CovernmenL shall
provlde Lhe necessary granLs", alLhough lL
expecLed Lhe Cames Lo generaLe a surplus.
4.1.1 Approva| to ICA for b|dd|ng,
w|thout obta|n|ng or exam|n|ng the
ICA b|d
ln May 2003, approval of Lhe rlme MlnlsLer

was soughL (and granLed) on a CablneL noLe
proposed by M?AS, allowlng lCA Lo bld for
Lhe Cames and underwrlLlng CovernmenL's
supporL for Lhe bld.
Powever, whlle submlLLlng Lhls CablneL
noLe, M?AS dld noL even obLaln Lhe acLual
bld of Lhe lCA Lo Lhe CCl. 1he CablneL noLe
merely reproduced lCA esLlmaLes of 8s. 490
crore of revenue and expendlLure of 8s.
293.30 crore, wlLhouL an examlnaLlon of Lhe
underlylng lCA bld. ln facL, Lhese flgures do
noL Lally aL all wlLh Lhose lndlcaLed ln Lhe
lCA bld. 1hls bld lndlcaLed:
revenues of 8s. 840 crore, offseL by
operaLlng expenses of 8s. 633 crore,
leavlng a pro[ecLed surplus of 8s. 203
crore,
1oble 4.1 - cbtoooloqy of eveots leoJloq to owotJ of klk cwC to uelbl
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
In short, r|me M|n|ster|a| approva| |n
May 2003 for the ICA to b|d for CWG-
2010 was processed by MAS w|thout
obta|n|ng, |et a|one exam|n|ng, the ICA
b|d document.
wou|d be ab|e to ra|se resources on |ts own
amount|ng to ks. 480 crore, wh|ch was
des|red by Secretary, MAS.
1he CablneL noLe, however, referred Lo
lCA's relLeraLlon of commlLmenL" for
revenue generaLlon, and sLaLed LhaL Lhe
pro[ecLlons of lCA showed an approxlmaLe
surplus of 8s. 30-60 crore, Lhus hlnLlng LhaL
Lhere was no subsLanLlal rlsk Lo Col ln
agreelng Lo underwrlLe Lhe shorLfall
beLween revenue and expendlLure of
hosLlng Lhe Cames.
AnoLher annexed leLLer from Shrl 8andhlr
Slngh, SecreLary Ceneral, lCA sLaLed LhaL:
lL was Lhe requlremenL of Lhe CCl LhaL
Lhe CovernmenL of Lhe hosL counLry
musL glve an underLaklng Lo underwrlLe
Lhe shorLfall, lf any, ln Lhe caplLal and
revenue expendlLure of Lhe Cames.
lL was undersLood LhaL Lhe Canadlan
CovernmenL had furnlshed a slmllar
guaranLee Lo Lhe CCl.
We found no evldence of a CCl
requlremenL mandaLorlly sLlpulaLlng
guaranLee by Lhe CovernmenL of Lhe hosL
counLry (noL [usL Lhe clLy). lurLher, no such
guaranLee was glven by Lhe CovernmenL of
Canada, as broughL ouL ln Lhe CCl
LvaluaLlon CommlLLee 8eporL (descrlbed
subsequenLly ln para 4.1.4).
Cn Lhe drafL CablneL noLe, Mol dld noL
supporL Lhe proposal Lo underwrlLe Lhe
shorLfall beLween revenue and expendlLure,
and suggesLed LhaL ln case such
commlLmenL was necessary, Lhe llablllLy of
Col should be capped. Powever, Mol dld
noL challenge Lhe esLlmaLes of revenue/
surplus.
4.1.2 V|s|t of CGI Lva|uat|on Comm|ss|on

|n August 2003
uurlng lLs vlslL Lo uelhl ln AugusL 2003, Lhe

CCl LvaluaLlon Commlsslon for CWC-2010
soughL cerLaln addlLlonal lnformaLlon and
clarlflcaLlons on Lhe lCA bld. key among
Lhese clarlflcaLlons were commlLmenLs from
Lhe CovernmenL, ln parLlcular:
Agreelng Lo become parLles Lo Lhe PCC,
underwrlLlng any shorLfall beLween
revenue and expendlLure of Lhe
Crganlslng CommlLLee (CC) - ln effecL,
Lhe cosL of Lhe Cames, and
rovldlng all necessary CovernmenL and
munlclpal servlces aL CovernmenL/
munlclpal cosL.
4.1.3 Cab|net Note of September 2003
ln SepLember 2003, M?AS moved a CablneL
noLe seeklng approval Lo Lhe above
commlLmenLs, based on a leLLer of AugusL
2003 [olnLly slgned by Shrl Suresh kalmadl
and Shrl 8andhlr Slngh (as lCA resldenL
and Ceneral SecreLary respecLlvely). 1hls
leLLer, supporLed by an assessmenL of
1
commerclal revenues by SMAM , lndlcaLed
lCA's confldence" LhaL Lhe CC would be
able Lo ralse revenue resources of uS$ 100
mllllon. nowever, the |etter d|d not |nd|cate
a spec|f|c undertak|ng from ICA that |t
1
5obsepoeotly oppoloteJ os tbe Oc's coosoltoot fot
spoosotsblp ooJ metcbooJlsloq/ llceosloq tlqbts
Lv|dent|y, ICA cou|d not have won the
b|d w|thout GoI, |n con[unct|on w|th LG,
De|h| and CM, GNC1D, undertak|ng to
bear a|| the costs assoc|ated w|th the
Games. In the case of Ind|a, thus, the
Games became the property of the
nat|on, rather than mere|y that of the
ICA.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) SS
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
for any deflclL of Lhe CC. 1he
CovernmenLs of Canada and CnLarlo
would noL be parLles Lo Lhe PosL ClLy
ConLracL. Cnly PamllLon ClLy Councll
would provlde deflclL underwrlLlng,
sub[ecL Lo a number of condlLlons.
neverLheless, PamllLon's bld was
consldered Lo be a conformlng bld".
8y conLrasL, Lhe overrldlng underLaklng
LhaL Col and CnC1u would meeL Lhe
cosLs of Lhe Cames and would
underwrlLe any operaLlng or caplLal
budgeL shorLfall (l.e. lncludlng boLh
operaLlng expenses and venue
upgradaLlon) was noLed.
1he keport a|so noted that the De|h| CC
wou|d be a non-prof|t Government-
owned reg|stered soc|ety, cha|red by a
Government nom|nee w|th the ICA
res|dent as V|ce-Cha|rman. 1he
consLlLuLlon of Lhe L8 was as lndlcaLed
ln Lhe May 2003 bld of lCA.
M?AS responded LhaL ln vlew of Lhe

pro[ecLlons of revenue and surplus, Lhe
shorLfall was an unllkely evenL. Pence, lL
was noL posslble Lo puL a cap on Lhe llablllLy
of Col, alLhough Lhe llkely llablllLy on
accounL of lnfrasLrucLure developmenL was
esLlmaLed aL 8s 218.30 crore.
ConsequenLly, Lhe CablneL approved Lhe
proposal for underwrlLlng any shorLfall
beLween revenue and expendlLure, wlLhouL
any cap.
SubsequenLly, ln SepLember 2003, Col, ln
con[uncLlon wlLh Lhe LL. Covernor (LC) and
CM, CnC1u, gave formal underLaklngs Lo
bear all Lhe cosLs lnvolved ln upgradlng and
consLrucLlng all lnfrasLrucLure, securlLy,
LransporL eLc. requlred for sLaglng Lhe
games and also underwrlLlng any shorLfall
beLween revenue and expendlLure of Lhe
CC.
4.1.4 keport of CGI Lva|uat|on
Comm|ss|on of Cctober 2003
1he CCl LvaluaLlon Commlsslon for CWC-

2010 analysed Lhe blds of PamllLon and
uelhl for Lhe 2010 Cames. Among oLher
Lhlngs, lL noLed Lhe followlng:
1he CovernmenLs of Canada and
CnLarlo, Lhe ClLy of PamllLon and
McMasLer unlverslLy pledged speclflc,
slgnlflcanL conLrlbuLlons Lo Lhe cosL of
sLaglng Lhe Cames. Powever, Lhe
CovernmenL of Canada would noL
provlde deflclL guaranLee, and would
llmlL lLs conLrlbuLlon Lo 33 per cenL of
Lhe LoLal evenL cosLs (noL exceedlng 30
per cenL of Lhe LoLal publlc secLor
conLrlbuLlon). ln facL, none of Lhe
CovernmenLs of Canada and CnLarlo,
Lhe Canadlan CCA or McMasLer
unlverslLy would assume responslblllLy
CC were sLlpulaLed, as also commerclal
rlghLs, llcenslng, sponsorshlp,
lnLellecLual properLy, markeLlng and
broadcasLlng rlghLs.
1he hosL fees payable Lo Lhe CCl, as well
as courLesy faclllLles for Lhe Cames
lamlly, offlclals and aldes, were also
sLlpulaLed.
under Lhe PCC, CC was requlred Lo comply
wlLh 34 ma[or obllgaLlons wlLhln prescrlbed
Llmellnes. Powever, fulfllmenL of Lhese
obllgaLlons suffered delays, ranglng from 1
Lo 36 monLhs. lurLher, mosL of Lhe CCl
approvals for compllance wlLh Lhe
obllgaLlons were obLalned verbally.

0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.1.S Ma|n Ieatures of nost C|ty Contract
(nCC)
1he PCC was slgned on 13 november 2003

beLween Lhe CCl, lCA, Col, CnC1u and Lhe
2
CC (yeL Lo be formed ). 1he maln feaLures of
Lhe PCC are summarlzed below:
1he CC, lCA, Col and CnC1u would be
[olnLly and severally responslble for all
commlLmenLs, lncludlng, wlLhouL
llmlLaLlon, flnanclal commlLmenLs
relaLlng Lo Lhe organlzaLlon and sLaglng
of Lhe Cames ln accordance wlLh Lhe
Cames documenLs.
1he Cames would be organlzed ln
accordance wlLh Lhe provlslons of Lhe
CCl ConsLlLuLlon, proLocols, regulaLlons
and code of conducL, and Lhe CC would
be consLlLuLed wlLhln 6 monLhs wlLh
sLaLus and powers ln accordance wlLh
Lhe CCl roLocols.
1he CCl would be represenLed on Lhe
3
CC LxecuLlve 8oard , lL would also
esLabllsh a Co-ordlnaLlon Commlsslon
(CoCCM) Lo llalse wlLh, monlLor and
advlse Lhe lCA and CC on all maLLers
relaLlng Lo Lhe organlzaLlon of Lhe
Cames.
1he lCA and CC would submlL varlous
plannlng documenLs and sLraLegles for
CCl's wrlLLen approval wlLhln sLlpulaLed
Llmeframes, as also perlodlc reporLs on
Lhe progress of preparaLlons.
8rlef deLalls of venues and servlces/
acLlvlLles (vlz. LlckeLlng, hosplLallLy,
accommodaLlon, LransporL, securlLy,
ceremonles eLc.) Lo be provlded by Lhe
2
3
1be Oc, wblcb wos fotmeJ ooly lo lebtooty 2005, slqoeJ
tbe ncc lo Motcb 2005.
1etmeJ os tbe 8ootJ of ultectots lo tbe ncc.
4.2 Weak Governance
Structure
4.2.1 Mu|t|p||c|ty of Agenc|es
Clven Lhe mulLl-dlmenslonal naLure of Lhe

Cames ro[ecL and mulLlpllclLy of dellverlng
agencles, Lhe funcLlonal envlronmenL posed
numerous challenges. 1he numerous
agencles responslble for Lhe varlous
acLlvlLles leadlng Lo Lhe Cames ro[ecL
could be caLegorlsed lnLo:
MlnlsLrles/ ueparLmenLs of Col &
CnC1u,
Munlclpal bodles,
venue owners,
lmplemenLlng agencles for Lhe venues,
Cames vlllage, and clLy lnfrasLrucLure
pro[ecLs,
CC,
8egulaLory agencles and oLher agencles
accordlng clearances, and
Agencles handllng supporL funcLlons.
1h|s un|que cha||enge was best met by
entrust|ng the stewardsh|p of the Games
ro[ect to a s|ng|e po|nt of author|ty and
accountab|||ty. 1he author|ty wou|d be
accorded adequate mandate to ensure
a|| de||verab|es |n t|me, to cost and to
spec|f|ed qua||ty standards. Iurther, |n
v|ew of the Government guarantee for
meet|ng the cost of the Games, |t was
essent|a| for such stewardsh|p to be fu||y
under Government contro|.
lor Lhe Melbourne CWC 2006, Lhe
vlcLorlan CovernmenL overslghLed Lhe
plannlng and dellvery of Lhe games
Lhrough a speclally formed cablneL
subcommlLLee whlch lncluded
represenLaLlon from key porLfollos and
was chalred by Lhe remler. 1he vlcLorlan
CovernmenL was Lhe underwrlLer of Lhe
evenL.
1he MlnlsLer for CommonwealLh Cames,
Mr. !usLln Madln, MLC was responslble
for Lhe CommonwealLh Cames
ArrangemenLs AcL 2001. under Lhe AcL,
he had wlde ranglng plannlng powers for
Lhe varlous pro[ecLs necessary for Lhe
dellvery of Lhe Cames lnfrasLrucLure. 1hls
lncluded maklng venue and pro[ecL
orders for Lhe Llmely compleLlon of Lhe
Cames lnfrasLrucLure and for crowd
managemenL ln Lhe publlc domaln durlng
Lhe Cames.
1he Cfflce for CommonwealLh Cames Co-
ordlnaLlon (CCCC) wlLhln Lhe ueparLmenL
for vlcLorlan CommunlLles was
esLabllshed ln 2002 Lo manage Lhe
CovernmenL's lnLeresL ln Lhe Cames and
Lo ensure effecLlve coordlnaLlon of Lhe
Cames across and wlLhln Lhe
CovernmenL.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1he organlzaLlonal arrangemenL as seen ln
Lhe case of Lhe xvlll CWC ln 2006 aL
Melbourne clearly shows a hlerarchlcal
sLrucLure of command/conLrol wlLh
speclflcally asslgned responslblllLles.
Conslderlng LhaL a large conLlngenL of
lndlan offlclals from Col/CnC1u/lCA/CC
eLc. vlslLed Melbourne, LhaL model could
have been sLudled and lLs relevanL aspecLs
adopLed.
1he followlng box lllusLraLes Lhe complexlLy
of Lhe dellvery sLrucLure for Lhe Cames:
Me|bourne CWG 2006
Crgan|sat|ona| arrangement
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Note: Aqeocles wltb moltlple toles (e.q. owoet/ lmplemeotloq oqeocy/ teqolototy oqeocy) ote sbowo moltlple
tlmes commlttees (oot beloq foll-fleJqeJ oqeocles/ lostltotloos) ote oot JeplcteJ bete.
GoI M|n|str|es]
Departments]
Agenc|es
De|h|
Government
Mun|c|pa|
8od|es
Cthers
Mon|tor|ng and
Cvers|ght
Venue Cwners
Imp|ement|ng
Agenc|es
Support Serv|ces
kegu|atory Agenc|es
and other Agenc|es
accord|ng c|earances
CablneL SecreLarlaL
MC
M?AS
MPA
Mouu
Mol
Mo l&8
Mo1
uo1
MoP&lW
SAl, uuA, uu
(lncludlng consLlLuenL
colleges), !Mlu, C8l
uuA, CWu,
LlL, 8l1LS, M1nL,
LClL, 1ClL, 8LClL
uelhl ollce, rasar
8haraLl, l8, M1nL,
l1uC, Safdar[ung,
AllMS and C8 anL
PosplLal, ASl
uuAC, ASl,
MoLl, L&uC, uuA
LC
CM, CnC1u
Wu
Wu, u1C,
u11uC, uPS,
u!8, CL,
u1L,
u1C, u11uC,
uPS, u!8
loresL uepLL,
u11lLC,
ulS, uCC
nuMC
nuMC,
MCu
nuMC,
MCu
CC
CCl
Al1A, uS
8k uram
CC
1oble 4.2 - ltoflle of Mojot Aqeocles lovolveJ lo cwC - 2010
reparaLlons for an evenL of Lhls
magnlLude requlred a hlgh degree of
conLlnulLy of funcLlonarles, for
conslsLency as well as accounLablllLy.
Powever, Lhere were numerous changes
ln Lhe funcLlonarles aL varlous levels ln
Lhe M?AS assoclaLed wlLh Lhe Cames
from May 2003 Llll daLe, Lhere were flve
MlnlsLers, ?AS, flve MlnlsLers of SLaLe,
?AS, seven SecreLarles, ?AS, and Lhree
!olnL SecreLarles (SporLs/ lSu), as
lndlcaLed below. 1hls, furLher,
conLrlbuLed Lo Lhe lack of effecLlve and
conslsLenL monlLorlng by Lhe M?AS.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.2.2 Group of M|n|sters (GoM)
ln SepLember 2004, Lhe rlme MlnlsLer

approved Lhe consLlLuLlon of a core Croup
of MlnlsLers (CoM) headed by laLe Shrl
Ar[un Slngh, Lhe Lhen MlnlsLer, P8u for co-
ordlnaLlng Lhe work relaLed Lo Lhe
organlsaLlon of Lhe Cames. 1he flrsL
meeLlng of Lhe CoM was held ln SepLember
2004. A LoLal of 14 meeLlngs were held
beLween SepLember 2004 and Aprll 2008.
1hls CoM was reconsLlLuLed Lwlce ln !uly
2007 and Aprll 2008.
1he CoM could noL provlde Lhe much
needed focus and lmpeLus:
uurlng 2004-06, Lhe CoM Look
concluslve declslons only on seLLlng up
of Lhe Apex CommlLLee, CoS, auLhorlLles
for flnanclal approvals, engagemenL of
LkS aL CC's recommendaLlon, and
model for Lhe Cames vlllage.
uurlng 2007, declslons were Laken only
on flnallsaLlon of sporLlng dlsclpllnes
and compeLlLlon/ Lralnlng venues.
uurlng Aprll 2008, no ma[or declslons
were Laken.
CoM dld noL meeL beLween May and
november 2008. 1he lnLerlm CoM, whlch
was consLlLuLed by Lhe CablneL ln uecember
2008 under Lhe chalrmanshlp of Shrl !alpal
8eddy, Lhe Lhen MlnlsLer, uu, meL Lhrlce
beLween uecember 2008 and !une 2009, lLs
maln declslon was Lhe engagemenL of Shrl
8haraL 8ala as creaLlve head for Lhe openlng
and closlng ceremonles.
1he new CoM meL 34 Llmes beLween !une
2009 and CcLober 2010, and was ln poslLlon
aL Lhe Llme of Lhe hosLlng of Lhe Cames.
4.2.3 ko|e of MAS
As declded by Lhe CoM ln CcLober 2004,
Lhe MlnlsLry of ?ouLh Affalrs and SporLs was
enLrusLed wlLh Lhe overall responslblllLy of
revlewlng and monlLorlng varlous
arrangemenLs and organlsaLlon of Lhe
Cames, lL was also responslble for
formulaLlng Cames-relaLed fundlng
proposals of CC and Lhe venue owners as
well as for releaslng Col funds Lo Lhese
agencles. Powever, we observed LhaL M?AS
could noL esLabllsh a sLable, long-Lerm
mechanlsm for dlscharglng Lhls onerous
responslblllLy.
Irequent changes |n
|ncumbency |n MAS
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
M|n|ster of State, AS
Secretary
M|n|stry b|furcated |n the year 2008
Deptt. of Sports
26.08.2002 Lo 21.03.2004
22.03.2004 Lo 23.03.2003
30.01.2006 Lo 06.04.2008
07.04.2008 Lo 19.01.2011
24.03.2003 Lo 21.03.2004
26.03.2003 Lo 17.11.2003
18.11.2003 Lo 29.01.2006
01.06.2009 Lo 16.06.2009
17.06.2009 Lo 19.01.2011
1.4.2003 Lo 31.3.2004
1.6.2004 Lo 8.11.2003
9.11.2003 Lo29.6.2006
4.7.2006 Lo 19.3.2007
4.4.2007 Lo 19.3.2008
20.3.2008 Lo 17.3.2009
19.3.2009 Llll daLe
17.4.2009 Lo 30.9.2009
1.10.2009 Lo 2.11.2009
(addlLlonal charge)
3.11.2009 Llll daLe
lrom 2003 Lo SepL. 2004
CcL. 2004 Lo leb. 2007
leb. 2007 Llll daLe
27.11.2006 Llll daLe
14.03.2007 Llll daLe
Shr| V|kram Verma
Shr| Sun|| Dutt
Shr| Man| Shankar A|yar
Dr. M.S. G|||
Shr| V|[ay Goe|
Shr| r|thv|ra[ Chavan
Shr| Cscar Iernandes
Shr| Arun adav
Shr| rat|k rakashbapu at||
Sh. ka[eev Sr|vastava
Smt. Meenax| Anand Chaudhry
Dr. S.. uresh|
Sh. Madhukar Gupta
Sh. S.k. Arora
Sh. Sudh|r Nath
Smt.S|ndhushree khu||ar
Smt. Iayat| Chandra
Smt. S|ndhushree khu||ar
Sh. A.k. Upadhyay
Sh. k.k. M|shra
Sh. S. kr|shnan
Sh. In[et| Sr|n|vas
Sh. kahu| 8hatnagar
Sh. S.k. M|tta|
Deptt. of outh Affa|rs
Io|nt Secretary (Sports)
Io|nt Secretary (ISD)
Io|nt Secretary & I|nanc|a| Adv|ser
M|n|ster, AS
1oble 4.J - cbooqes lo locombeocy ot MA5
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.2.4 Apex Comm|ttee
1he Apex CommlLLee under Lhe

chalrmanshlp of MlnlsLer, ?AS was declded
upon ln CcLober 2004 by Lhe CoM. lL was
consLlLuLed ln March 2003, reconsLlLuLed ln
May 2006 and november 2006, and
funcLloned only from !une 2006 (l.e. 19
monLhs afLer Lhe declslon Lo consLlLuLe Lhls
commlLLee) Llll Aprll 2007, when lL was
dlsconLlnued.
ln hls leLLer of 14 november 2004 Lo Lhe
rlme MlnlsLer afLer Lhe flrsL CoM meeLlng,
Lhe ersLwhlle MlnlsLer, ?AS, laLe Shrl Sunll
uuLL, appeared Lo have mlsLaken Lhe Apex
CommlLLee" for Lhe Crganlslng CommlLLee.
1hls CommlLLee was Lo have overrldlng
power and responslblllLy for overseelng and
co-ordlnaLlng Lhe Cames. Powever, Lhls
mandaLe was hlghly clrcumscrlbed by Lhe
CoM lLself, whlch sLlpulaLed LhaL:
1he mlnuLes of all oLher CommlLLees
should be submlLLed Lo Lhe Apex
CommlLLee perlodlcally for lLs
lnformaLlon.
1he Chalrman of Lhe Apex CommlLLee
could also call for such lnformaLlon
whlch he deemed flL and could glve such
guldance LhaL may be requlred.
1he Chalrman of Lhe Apex CommlLLee
may be kepL lnformed by all oLher
CommlLLees, whenever any ma[or
declslon was Laken.
WlLh such Lerms of reference, lL ls no
wonder LhaL Lhe Apex CommlLLee Lurned
ouL Lo be a compleLe non-sLarLer, as Lhe
responslblllLy placed on lL by Lhe CoM could
noL be fulfllled ln any way.
1he erstwh||e M|n|ster, AS, Shr| Man|
Shankar A|yar, went on record at the
GoM meet|ng of March 2008 that the
Apex Comm|ttee was dormant for 1x
years due to "res|stance from the CC."
In correspondence w|th the M, Shr|
A|yar |nd|cated that |t was h|s persona|
dec|s|on to not operat|ona||se the Apex
Comm|ttee after "ka|mad|'s voc|ferous
oppos|t|on to the Apex Comm|ttee at
the meet|ng |n August 2006 convened
at your |eve|."
G|ven the over|app|ng nature of
respons|b|||t|es, and w|thout a c|ear
h|erarch|ca| report|ng re|at|onsh|p
between the Apex Comm|ttee and the
CC, |t shou|d have been ant|c|pated,
even |n Cctober 2004, that there wou|d
be conf||cts between these two
Comm|ttees, |f both were a||owed to
funct|on concurrent|y. 1he fa||ure of
the Apex Comm|ttee was, thus,
|nev|tab|e.
ln !uly/ AugusL 2006, Lhe Apex CommlLLee
declded Lo consLlLuLe flve sub-groups
deallng wlLh:
CorporaLe SecLor arLlclpaLlon,
CWC Legacy,
Lconomlcs and rovlslonlng of
lnfrasLrucLure,
ubllc arLlclpaLlon/ Medal 1ally, and
CrganlsaLlon of Cames.
1hese sub-groups were Lo submlL Lhelr
reporLs Lo Lhe Chalrman of Lhe Apex
commlLLee, buL were dlsconLlnued on
dlsbandlng of Lhe Apex CommlLLee lLself ln
Aprll 2007.

0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.3 1he Crgan|s|ng Comm|ttee
(CC) and ko|e of MAS v|s-
a-v|s CC
4.3.1 Iormat|on of CC
1he PCC sLlpulaLed Lhe formaLlon of an
Crganlslng CommlLLee wlLhln slx monLhs.
Powever, Lhe Crganlslng CommlLLee
CommonwealLh Cames 2010 uelhl was
reglsLered as a SocleLy only on 10 lebruary
2003 under Lhe SocleLles 8eglsLraLlon AcL,
1860.
AL Lhe Llme of blddlng for Lhe Cames, CC
was envlsaged as a Covetomeot owoeJ
teqlsteteJ soclety. Powever, we found a
documenL LlLled as Lhe 'updaLed' bld wlLh
Lhe daLellne of uecember 2003. 1hls
documenL, whlch, ln our oplnlon, has no
legal sancLlLy or relevance (slnce Lhe PosL
ClLy ConLracL had already been slgned ln
november 2003), was senL Lo Lhe M?AS
only ln SepLember 2004. We are unsure
as Lo when lL was produced slnce we
found mulLlple verslons of lL made
avallable Lo us by dlfferenL sources, all
"Updated" b|d document
w|th December 2003 t|me||ne
bearlng Lhe same daLellne - uecember
2003 . uescrlblng Lhls documenL as an
updaLed bld documenL" was a
mlsrepresenLaLlon by Lhe lCA.
1here was no offlclal endorsemenL by Col
of Lhe modlfled consLlLuLlon and
sLrucLure of CC envlsaged ln Lhe
'updaLed' bld, however, CC was
reglsLered ln lebruary 2003 ln Lhe form
and sLrucLure lald ouL ln Lhls documenL.
1he bld documenL submlLLed Lo Lhe CCl
(May 2003) and Lhe documenL LlLled as
Lhe updaLed" bld (uecember 2003) are
slmllar, excepL for Lhe organlzaLlonal
sLrucLure of Lhe CC and cerLaln
expendlLure flgures under one head
(Cames CperaLlng LxpendlLure). CLher
dlfferences lncluded changes ln cerLaln
venues, locaLlon of Lhe Cames vlllage ,
and an lncrease ln some heads (e.g.
llcense fee payable Lo CCl, paymenLs Lo
CCAs, Cames 1echnlcal ConducL eLc.)
balanced largely by a reducLlon ln one
head (parLlclpanLs and Leam offlclals) . A
comparlson of Lhe consLlLuLlon of CC and
lLs LxecuLlve 8oard ln Lhe bld documenL
and Lhe updaLed" bld documenL reveals
Lhe followlng poslLlon:
4
S
6
4
S
6
Moltlple vetsloos of tbe so-colleJ opJoteJ blJ" bove beeo ptovlJeJ to os by MA5 ooJ Oc, oll wltb tbe Jotelloe of uecembet
200J. we ote oooble to Jetetmloe ootbeotlcolly os to wbeo tbls opJoteJ blJ" wos octoolly ptoJoceJ, os socb, tlll 5eptembet
2004, wbeo tbls Jocomeot wos ttoosmltteJ to tbe MA5.
Ooe of tbe vetsloos of tbe opJoteJ blJ" loJlcoteJ tbot tbe Comes vllloqe woolJ be oo o 118 octe plot oo tbe books of tbe
omooo, tbe otlqlool blJ, metely, stoteJ tbot tbe Atbletes Comes vllloqe woolJ be cteoteJ oo o 100 octe slte lo o ptlme uelbl
oteo, tbe ossocloteJ mops loJlcoteJ o locotloo oo tbe New uelbl slJe of tbe klvet omooo, totbet tboo oo tbe ost uelbl slJe.
1be tewotkloq of tbe flqotes ooJet tbe beoJ Comes Opetotloq xpeoJltote" boJ oometoos Jlsctepoocles. xpeoJltote
ooJet cettolo beoJs wete teJoceJ to ooe-teotb ot locteoseJ teo-folJ, wltboot ooy oltetotloo lo tbe ooJetlyloq soppottloq
flqotes.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ln a separaLe response, Shrl kalmadl (Lx-Chalrman, CC) lndlcaLed LhaL lL was necessary Lo
amend Lhe flnal bld Lo brlng lL ln conformlLy wlLh Lhe Cames roLocols. lurLher, Lhe
CovernmenL had aL no Llme ob[ecLed Lo Lhls amendmenL, as Lhe Clymplc movemenL
conLemplaLe LhaL such organlzaLlons remaln free from governmenL lnLerference. We do
noL agree wlLh Shrl kalmadl's response, once CovernmenL of lndla declded Lo provlde
uncondlLlonal and unllmlLed flnanclal guaranLees, lL was duLy bound Lo Lake necessary
sLeps Lo safeguard Lhe publlc lnLeresL.
8|d Document
(May 2003)
Document ent|t|ed as "Updated"8|d
(December 2003)
Thc OC would bc a non-profiL,
non- GovcrnmcnL rcgisLcrcd
socicLy.
Thc charL dcpicLing Lhc EB of OC
simply showcd Lhc posiLions of
Chairman and Vicc Chairman,
references to Government
AppoIntee and lOA PresIdent as
VIce-ChaIrman were deIeted.
Thc OC would bc a non-
profiL, GovcrnmcnL-
owncd rcgisLcrcd socicLy.
ChaIrman, ExecutIve
Board wouId be a
Government AppoIntee,
and the VIce -ChaIrman
wouId be the lOA
PresIdent.
Nature of OC
ConstItutIon of the
ExecutIve Board
In our op|n|on, the pr|mary ob[ect|ve of the document, t|t|ed as the "updated" b|d, was
to orchestrate the appo|ntment of the res|dent, ICA (Shr| Suresh ka|mad|) as the
Cha|rman of the CC Lxecut|ve 8oard, s|nce, as per the May 2003 b|d document, the
res|dent, ICA wou|d on|y be the V|ce-Cha|rman. A chrono|ogy of re|ated events,
conc|ud|ng |n MC's commun|cat|on of 6 December 2004 (wh|ch was f|na||y accepted by
the GoM |n Ianuary 200S) that Shr| ka|mad| be appo|nted as the Cha|rman of the CC, |s
g|ven |n 1ab|e 4.4:
Appo|ntment of Shr| Suresh ka|mad|,
res|dent, ICA as Cha|rman, CC Lxecut|ve 8oard
1oble 4.4 - cbtoooloqy of veots teloteJ to fotmotloo of Oc
Date||ne Lvents
August - 5eptember
2004
Corrcspondcncc was cxchangcd bcLwccn Shri Kalmadi and Shri
Michacl Hoopcr, CEO, CGF, rcfcrring Lo rcccnL discussions aL
ALhcns, whcrcby Shri Hoopcr indicaLcd LhaL Lhc sLrucLurc of Lhc EB
of Lhc OC, iLs Chairman and mcmbcrs as proposcd by Shri Kalmadi
was acccpLablc Lo Lhcm.
Shri RK SachcLi, DirccLor, lOA wroLc Lo MYAS, cnclosing Lhc
"updaLcd bid", giving Lhc ncw sLrucLurc of Lhc OC, and sLaLing LhaL
CGF had informcd Lhcm LhaL, cxccpL Lhc CGF nominccs, all
mcmbcrs' appoinLmcnL had Lo bc approvcd by Lhc lOA Gcncral
Asscmbly.
6 5eptember 2004
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Date||ne Lvents
13 5eptember 2004 GoM consLiLuLcd, hcadcd by laLc Shri Ar|un Singh
Shri Surcsh Kalmadi wroLc Lo Lhc PM indicaLing LhaL
MYAS had noL puL Lhc corrccL pcrspccLivc of Lhc rolc of lOA in
Lhc Gamcs.
Thc Gamcs wcrc alloLLcd Lo Lhc lOA, and lOA had Lhc
rcsponsibiliLy Lo cnsurc succcssful conducL of Lhc Gamcs
OC was Lo bc formcd by Lhc lOA and approvcd by Lhc Gcncral
Asscmbly of lOA.
7
Shri Kalmadi also rcfcrrcd Lo Lhc "updaLcd bid" in Lhis lcLLcr.
S
1sL mccLing of GoM chaircd by PM .
Shri Kalmadi wroLc Lo Lhc PM, suggcsLing LhaL hc should bc Lhc
Chairman, OC, whilc Lhc MinisLcr, YAS should bc Chairman of Lhc
"SLccring CommiLLcc".
PM acknowlcdgcd Shri Kalmadi's lcLLcr, sLaLing LhaL Lhc SporLs and
HRD MinisLcrs had bccn askcd Lo cxaminc Lhc issucs.
lOA, aL iLs AGM, passcd a rcsoluLion, "consLiLuLing" Lhc Organising
CommiLLcc undcr Lhc lOA and clccLing Shri Kalmadi as Chairman of
9
Lhc OC and EB .
Shri Sunil DuLL wroLc Lo Shri Ar|un Singh, spccifically rcfcrring Lo
Lhc "updaLcd bid" documcnL rcccivcd in MYAS in ScpLcmbcr 2004.
Hc sLaLcd LhaL iL madc significanL changcs wiLh ma|or sLrucLural
and financial implicaLions, wiLhouL consulLaLion/ approval of Lhc
MYAS for making Lhcsc changcs. Spccifically, Shri DuLL highlighLcd
Lhc changc in consLiLuLion of Lhc OC from a non-profiL GovcrnmcnL
owncd rcgisLcrcd socicLy Lo a non-profiL, non-GovcrnmcnL
rcgisLcrcd socicLy as wcll as Lhc dclcLion of word "GovcrnmcnL
appoinLcc" as chairpcrson of Lhc ExccuLivc Board of Lhc OC. Shri
DuLL sLaLcd LhaL Lhc provisions in Lhc original bid musL havc bccn
incorporaLcd bccausc organizing Lhc CWG involvcd largc financial
commiLmcnLs on Lhc parL of Lhc Gol.
Shri Sunil DuLL wroLc Lo Lhc PM, spccifically highlighLing his surprisc
aL Lhc rcsoluLion passcd by lOA appoinLing Lhc PrcsidcnL, lOA as
Chairman of Lhc OC. This was aL variancc wiLh Lhc dccisions Lakcn
in Lhc GoM mccLing (of 25 OcLobcr 2004). Hc also sLaLcd LhaL Lhc
minuLcs of Lhis GoM mccLing, as issucd by Lhc CabincL SccrcLariaL
and rcccivcd in his officc on 10 Novcmbcr 2004, did noL rcflccL
Lhc dccisions Lakcn in Lhc mccLing rcgarding various aspccLs of
Lhc composiLion of Lhc OC.
23 October 2004
25 October 2004
26 October 2004
2S October 2004
1 November 2004
11 November 2004
14 November 2004
7
8
9
wblcb temoveJ tbe tefeteoce to tbe cboltmoo of Oc os o Covetomeot oomloee.
kefetteJ to by lote 5btl 5ooll uott lo bls lettet of 11 Novembet 2004.
1bls wos o vety sotptlsloq Jevelopmeot, os tbe lM's Jeclsloo, JeclJloq tbot 5btl kolmoJl woolJ be tbe cboltmoo, wos
commoolcoteJ ooly oo 6 uecembet 2004.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Date||ne Lvents
lnLcrcsLingly, wc found subsLanLial diffcrcnccs bcLwccn Lhc drafL
minuLcs of Lhc GoM mccLing prcparcd by MYAS, and Lhosc finaliscd
by Lhc CabincL SccrcLariaL and forwardcd Lo Lhc PM.
Thc rcfcrcncc Lo an OC (as wcll as Lhc OC EB) undcr Lhc
chairmanship of MinisLcr, YAS for crcaLion and dcvclopmcnL of
infrasLrucLurc faciliLics for CWG-2010 was rcplaccd by a
rcfcrcncc Lo an "Apcx CommiLLcc" chaircd by MinisLcr, YAS for
"moniLoring and rcvicwing of acLiviLics".
Thc rcfcrcncc Lo Lhc Empowcrcd CommiLLcc on infrasLrucLurc
(chaircd by Lhc LG) funcLioning undcr Lhc OC was rcplaccd by
an Empowcrcd CommiLLcc Lo "moniLor" consLrucLion.
A communicaLion from Lhc PMO sLaLcd LhaL insLiLuLional
arrangcmcnLs had bccn cvolvcd for Lhc conducL of Lhc CWG-2010.
ln Lhis, Shri Surcsh Kalmadi, PrcsidcnL, lOA was indicaLcd as Lhc
Chairman of Lhc Organising CommiLLcc and Lhc ExccuLivc Board. lL
also communicaLcd Lhc Primc MinisLcr's dirccLion LhaL Lhcsc
insLiLuLional arrangcmcnLs bc considcrcd in Lhc ncxL GoM mccLing.
Thc sccond GoM MccLing did noL Lakc a vicw rcgarding
govcrnancc sLrucLurc.
Thc GoM, aL iLs Lhird mccLing, cndorscd Lhc vicws of Lhc PMO and
dccidcd LhaL Lhc OC would bc hcadcd by Shri Kalmadi.
OC was rcgisLcrcd as a socicLy undcr Lhc SocicLics RcgisLraLion
AcL, 1860. Thc Rulcs and RcgulaLions of Lhc OC indicaLcd Shri
Kalmadi by namc (and noL mcrcly as PrcsidcnL, lOA) as Lhc
Chairman of Lhc OC
6 December 2004
14 January 2005
29 January 2005
10 February 2005
Lven, Shrl MS Clll, Lhe ersLwhlle MlnlsLer,
?AS, ln hls leLLer Lo Lhe M (SepLember
2009) sLaLed LhaL tbe otlqlool slqoeJ
Jocomeot boJ o Covetomeot cboltmoo, bot
lotet somebow tbot wos cbooqeJ".
lncldenLally, lL may be noLed LhaL Lhe
Melbourne 2006 CommonwealLh Cames
CorporaLlon (M2006), prevlously creaLed
under lederal Company Law ln 1999, was
lncorporaLed as a SLaLuLory AuLhorlLy ln
2003 Lo manage Lhe provlslon of Lhe Cames
and lLs 8oard reporLed Lo Lhe MlnlsLer
under Lhe CommonwealLh Cames
ArrangemenL AcL.
In our op|n|on, the dec|s|on of the MC
for appo|nt|ng Shr| Suresh ka|mad| as
the Cha|rman of the CC fac|||tated the
convers|on of the or|g|na||y env|saged
Government-owned CC |nto a body
effect|ve|y outs|de Governmenta|
contro|.
4.3.2 Members of CC
1he bld documenL (May 2003) referred only
Lo a 13-member LxecuLlve 8oard, supporLed
by LxecuLlve ManagemenL" and Speclal
ro[ecLs & 8elaLlons". 1here was no
menLlon whaLsoever of any oLher
1he const|tut|on of an unw|e|dy 400-p|us
genera| body of members of the CC,
wh|ch was not env|saged |n the b|d
document or the nCC, d|d not resu|t |n
any s|gn|f|cant benef|t or va|ue add|t|on
to the Games ro[ect.
Lven the erstwh||e M|n|ster, AS, Shr| MS
G|||, |nd|cated |n September 2009 that
these 23 sub-comm|ttees had rare|y met
or performed |n de||ver|ng the Games to
the qua||ty expected.
documenLaLlon of Lhe acLlon Laken, lf any,
on Lhe recommendaLlons/ advlce offered by
Lhese sub-commlLLees.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
membershlp" or general body" of Lhe
10
CC .
Powever, Lhe 8ules and 8egulaLlons of Lhe
CC, consLlLuLed as a socleLy, sLlpulaLed a
membershlp of noL more Lhan 300 persons
who shall be lnvlLed Lo become members
by Lhe Chalrman." Accordlng Lo Lhese 8ules,
Lhe members were Lo promoLe Lhe
purpose of Lhe SocleLy (vlz. Lhe CC) Lo Lhe
besL of Lhelr ablllLy".
Shrl kalmadl, Chalrman, CC, recommended
Lhe appolnLmenL of 484 members,
comprlslng Lhe CC Ceneral 8ody, whlch was
approved by Shrl Ar[un Slngh (Chalrman,
CoM) ln May 2003 and communlcaLed Lo
Lhe Lhen MlnlsLer, ?AS. 1he sLrengLh of Lhe
membershlp was subsequenLly reduced Lo
434 ln March 2004, aL Lhe behesL of Lhe
new CoM.
1he Ceneral 8ody, whlch conslsLed of
personallLles from dlfferenL walks of llfe,
was Lo meeL aL leasL once a year, Lo approve
Lhe accounLs/ budgeL and accepL Lhe reporL
of Lhe LxecuLlve 8oard and Lhe (prlvaLe)
audlLors.
As many as 23 sub-commlLLees of Lhe CC
were consLlLuLed from amongsL Lhe
members" of Lhe CC, for provldlng
advlce" on varlous funcLlonal areas. Whlle
Lhe daLes of consLlLuLlon of Lhese sub-
commlLLees could noL be ascerLalned, Lhe
1erms of 8eference for Lhese sub-
commlLLees are daLed as of 2009. 21 of
Lhese sub-commlLLees reporLedly held a
LoLal of 162 meeLlngs (ranglng from 2 Lo
17). 1he CC could noL produce records or
4.3.3 Lxecut|ve 8oard of CC
As flnally consLlLuLed, Lhe 13-member L8
had only 2 nomlnees each of Lhe Col and
11
CnC1u, of Lhese, only 2/ 3 members were
CovernmenLal funcLlonarles. AparL from Lhe
Chalrman (Shrl kalmadl), Lhe SecreLary
Ceneral, lCA (Shrl 8andhlr Slngh), was Lo be
Lhe L8 vlce-chalrman, wlLh Lhe lCA
1reasurer (Shrl Ak MaLLoo) and Lhe
SecreLary Ceneral, ALhleLlcs lederaLlon of
lndla (Shrl LallL k 8hanoL), as well as four
members from amongsL Lhe naLlonal SporLs
lederaLlons (Lo be nomlnaLed by Lhe
Chalrman). 1he CCl CLC and Lwo CCl
nomlnees compleLed Lhe L8.
1he day Lo day flnanclal and admlnlsLraLlve
declslons were Laken by Lhe LxecuLlve
ManagemenL CommlLLee (LMC) comprlslng
Shrl Suresh kalmadl, Shrl 8andhlr Slngh, Shrl
LallL k 8hanoL, SecreLary Ceneral and Shrl
A.k. MaLLoo, 1reasurer. 1he funcLlonlng of
Lhe CC was overseen by Lhe CC SecreLarlaL,
10
loclJeotolly, 5btl nI uoto, etstwblle vlqllooce
commlsslooet ooJ lteslJeot, welqbtllftloq leJetotloo
Membet of loJlo wos o foooJloq membet of tbe Oc. lo
tespoose to oot eopolty, tbe ceottol vlqllooce
commlssloo loJlcoteJ tbot oo lofotmotloo wos ovolloble
teqotJloq obtololoq of ptlot opptovol of tbe Covetomeot
by 5btl uoto befote occeptloq membetsblp of tbe Oc.
11
At Jlffeteot polots of tlme.
1he CC thus funct|oned, |n effect, as a
para||e|, non-Governmenta|
organ|zat|on, w|thout commensurate
accountab|||ty to Government and
concom|tant contro|s to ensure
propr|ety and transparency (desp|te fu||
f|nanc|a| guarantee and fund|ng from
Government).
Strange|y, apart from |ate Shr| Sk Arora,
erstwh||e Secretary, MAS's |etter of Iu|y
2007 (d|scussed subsequent|y) regard|ng
|ack of author|ty for GoI representat|ves
on the CC L8, the records of the L8
meet|ngs |nd|cate that the L8 dec|s|ons
were unan|mous and GoI
representat|ves were present. Iurther,
there were no |nstances of d|ssent notes
or matters be|ng put to vote on account
of |ack of unan|m|ty.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
headed by ulrecLor Ceneral (uCCC). 1he
varlous acLlvlLles Lo be underLaken by Lhe
CC for sLaglng Lhe Cames were Lo be looked
afLer by 34 luncLlonal Areas (lAs) each
headed by a luncLlonal area head.
ln a separaLe response, Shrl kalmadl sLaLed
LhaL Lhe declslons of Lhe L8 were Laken on a
unanlmous basls. Whlle Lhe consLlLuLlon of
Lhe CC conLemplaLed declslons belng Laken
by ma[orlLy, ln pracLlce, Lhls was noL
followed. 1herefore, effecLlvely each
CovernmenL nomlnee had a veLo power
over declslons of Lhe L8, none of whlch
recorded any maLLer belng puL Lo voLe.
lurLher, Shrl kalmadl also drew reference Lo
Lhe consLlLuLlon of Lhe llnance Sub
CommlLLee and Lhe CC llnance CommlLLee.
Cur commenLs on Lhe lneffecLlveness of Lhe
llnance Sub-CommlLLee and Lhe CC llnance
CommlLLee are broughL ouL ln ChapLer-7.
4.3.4 Concerns expressed regard|ng CC
Governance Structure
lrom !uly 2007 onwards, concerns of M?AS
resurfaced aL Lhe CoM and MC levels,
regardlng Lhe lack of CovernmenL conLrol
over Lhe funcLlonlng of Lhe CC and Lhe
absence of a sysLemaLlc arrangemenL Lo
ensure reasonableness of expendlLure and
greaLer publlc accounLablllLy. 1hls was of
crlLlcal lmporLance, ln vlew of Lhe CC belng
an asseL-less organlsaLlon funded enLlrely
by Lhe Col Lhrough an unsecured loan.
ln !uly 2007, Lhe laLe Shrl Sk Arora,
SecreLary, M?AS wroLe Lo Lhe MC, wlLh a
copy Lo Lhe CablneL SecreLary, regardlng Lhe
role and responslblllLles of Lhe Col
nomlnees on Lhe LxecuLlve 8oard of Lhe CC.
AparL from SecreLary, M?AS, SecreLary, uu
was nomlnaLed on Lhe L8, ln llne wlLh Lhe
M's deslre ln !une 2003 LhaL Col
represenLaLlon on Lhe L8 should be ralsed.
Shrl Arora lndlcaLed LhaL experlence had
shown LhaL Lhe LxecuLlve 8oard had a very
llmlLed managemenL or declslon-maklng
auLhorlLy and Lhe Col represenLaLlves had
nelLher any execuLlve auLhorlLy nor any
means of ensurlng LhaL Lhe CovernmenL's
vlew polnL was acknowledged and complled
wlLh, and concluded LhaL all declslon
maklng was concenLraLed wlLh Lhe
Chalrman.
Shrl Arora also hlghllghLed Lhe dlfferences
beLween Lhe composlLlon of Lhe CC wlLh
LhaL followed for Lhe Speclal Crganlslng
CommlLLee for Lhe 1982 Aslan Cames,
essenLlally ln Lerms of Lhe overrldlng
powers of Lhe Chalrman ln Lhe CWC CC, Lhe
Subsequent events [ust|f|ed Shr| Arora's
apprehens|ons regard|ng |ack of
Governmenta| contro| for ensur|ng
transparency and pub||c f|nanc|a|
accountab|||ty.
Shrl Arora suggesLed Lhree opLlons:
CC could reLaln lLs operaLlonal flexlblllLy
and flnanclal auLonomy, and Lhe role of
CovernmenL nomlnees could be
resLrlcLed Lo a largely advlsory role on
Lhe L8. Powever, ln such a slLuaLlon, Col
should revlse lLs declslon Lo glve brldge
flnance" Lo Lhe CC, and dlsconLlnue
dlrecL flnanclng by Col, as well as Lake a
vlew on Lhe overall celllng on Lhe
commlLmenL Lo meeL any revenue
deflclL.
CC should be glven a clear slgnal Lo vesL
declslon-maklng ln Lhe L8. CovernmenL
could conslder reLalnlng some auLhorlLy
for approvlng declslons wlLh flnanclal
commlLmenLs above a cerLaln llmlL.
CC could be dlrecLed Lo broadbase lLs
L8, as ln Lhe case of Lhe 1982 Aslan
Cames, wlLh represenLaLlon from Col
and CnC1u aL MlnlsLerlal level.

0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
lack of CovernmenLal conLrol, and Lhe
broadbased organlsaLlonal sLrucLure for Lhe
1982 Aslan Cames.
Shrl Arora flagged Lhe need for balanclng
CC's need for operaLlonal flexlblllLy wlLh
Lransparency and publlc flnanclal
accounLablllLy, and lndlcaLed LhaL ln Lhe
presenL legal framework of Lhe CC, lL was
unllkely LhaL Lhe CovernmenL
represenLaLlves would be able Lo dlscharge
Lhelr responslblllLy of ensurlng Lransparency
and publlc flnanclal accounLablllLy ln Lhe
managemenL of Lhe CC.
LxLracLs from leLLers addressed by Shrl Manl Shankar Alyar, ersLwhlle MlnlsLer, ?AS Lo Lhe
MC and M (CcLober 2007), and Lhe llnance MlnlsLer (uecember 2007) lndlcaLe Lhe lack
of conLrol by Lhe MlnlsLry of ?ouLh Affalrs and SporLs over Lhe funcLlonlng of Lhe CC:
Lack of declslon on lnsLlLuLlonal arrangemenLs Lo glve adequaLe and effecLlve
represenLaLlon Lo Lhe Col ln Lhe L8 and lmporLanL commlLLees of Lhe CC Lo ensure
publlc flnanclal accounLablllLy and reasonableness of expendlLure Lo mlnlmlze flnanclal
commlLmenLs of CovernmenL emanaLlng from lLs guaranLee Lo fully meeL Lhe revenue
deflclL of Lhe CC budgeL".
1he role of M?AS seemlng Lo be Lo funnel funds Lo Lhe CC", (descrlbed as an asseL-
less organlzaLlon") and Lhe Chalrman's lnslsLence LhaL funds should be released Lo
hlm as per Lhe annual phaslng approved by Lhe CablneL wlLh no furLher quesLlons
asked."
1he advlce by Lhe Mol Lo release Lhe balance funds ln monLhly lnsLallmenLs durlng
2007-08 on Lhe basls of lnformaLlon glven dlrecLly by Lhe Chalrman, CC, whlch dld noL
enllghLen us on Lhe basls of Lhese monLhly releases".
Concerns expressed by erstwh||e M|n|ster, AS, Shr| Man| Shankar
A|yar h|gh||ght|ng |ack of contro| by MAS over CC
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Such aLLempLs were meL wlLh sLrong
reslsLance from Lhe Chalrman, CC, who
wroLe Lo Shrl Ar[un Slngh, Chalrman CoM
sLaLlng LhaL ...ooy ottempt to flJJle otoooJ
wltb tbe sttoctotes of Oc woolJ oot ooly
stop tbe lotetool motloo bot woolJ be
petcelveJ os tettoqtoJe step by tbe cCl, lls
(lotetootloool leJetotloos) ooJ tbe
cCAs...woolJ Jlmlolsb tbe btooJ voloe of
tbe Comes qlobolly ooJ ptove to be fotol fot
tbe cooJoct of Comes."
leadlng Lo acrlmony and maklng our poslLlon raLher lnvldlous" and also requesLlng Lhe
Mol Lo conslder Lhe posslblllLy of rellevlng M?AS of Lhe responslblllLy of releaslng Lhe
balance of Lhe loan amounL and conslder dlrecLly releaslng Lhe resL of Lhe loan Lo Lhe
CC.
1he fallure of M?AS Lo esLabllsh a genulnely co-operaLlve worklng relaLlonshlp wlLh Lhe
CC, and Lhe abuse and scorn heaped aL Lhe MlnlsLry ln publlc sLaLemenLs by Lhe
Chalrman, who sLoops so low as Lo descrlbe us as carLoons slLLlng ln one room ln
ShasLrl 8havan", and Lhe Chalrman lncreaslngly resorLlng Lo esLabllshlng sub-
commlLLees of Lhe L8 whlch exclude Lhe CovernmenL nomlnees, Lake declslons
endorsed by Lhe Chalrman alone and wlLhouL referrlng even Lhe mlnuLes Lo Lhe
MlnlsLry" and seelng Lhe MlnlsLry as a mllch cow Lo exLracL as much money as he can
and a rubber sLamp Lo endorse every spendlng declslon he Lakes, however
ouLrageous."
1he suggesLlon of Lhe Lhen SecreLary, M?AS (laLe Shrl Sk Arora) LhaL slnce Lhe
Chalrman of Lhe CC belleves hls proposal Lo be bankable, lL mlghL be besL for hlm Lo
ralse Lhe requlred flnances ln Lhe open markeL raLher Lhan have CovernmenL fund hls
demands and Lhen be held responslble before arllamenL", and Lhe lack of response
from Lhe CablneL SecreLarlaL and Lhe MC on Lhls proposal.
Shrl Alyar also urged Lhe lmperaLlve need for recasLlng Lhe CC and lLs L8 Lo be chalred by
a MlnlsLer of SLaLe for lnLernaLlonal SporLlng LvenLs (l.e. fully under CovernmenLal
conLrol). Powever, we noLed LhaL Shrl Alyar's lnLervenLlons dld noL yleld Lhe deslred
resulLs.
Shrl Alyar's remarks LhaL followlng Lhe Cl8s and oLher flnanclal prudence norms ls
In our Study keport of Iu|y 2009 on
"reparedness for CWG-2010", we had
h|gh||ghted the need to reth|nk the
governance mode| for the Games
ro[ect. We a|so found s|gn|f|cant scope
for |mprovement of coord|nat|on
among agenc|es and for better c|ar|ty of
the|r ro|es. We a|so observed that |t was
v|ta| for the MAS and the CC to
assume effect|ve |eadersh|p w|thout
further |oss of t|me.
kecommendat|ons |n our
Study keport of Iu|y 2009
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
SubsequenLly, ln SepLember 2009, Mr. Mlke
lennell, resldenL CCl, wroLe Lo Lhe CC L8
members and sLaLed LhaL unless Lhere ls
slgnlflcanL change ln Lhe managemenL ,
culLure and operaLlon of Lhe CC , Lhese
games wlll fall from an operaLlonal
perspecLlve." Mr. lennell also meL Lhe M
and, reporLedly, expressed hls doubLs abouL
Lhe ablllLy of Lhe CC and lLs managemenL
for sLaglng Lhe Cames.
4.3.S Sphere of Inf|uence of CC
As per Lhe PCC, Lhe lCA and Lhe CC [olnLly
and severally underLook Lo organlse Lhe
Cames. 1hls was furLher expanded by Lhe
8ules and 8egulaLlons of Lhe CC, whlch
enabled lL Lo "odvise o// offices,
institutions, qovernments ond other bodies
of ossociotions thot moy be ossocioted
with the ho/dinq" of Lhe Cames, and also
"to decide on o// motters connected with
the preporotions ond ho/dinq" of Lhe
Cames.
1hus, ln addlLlon Lo Lhe organlsaLlon of Lhe
Cames proper, the CC was |n a pos|t|on to
take or |nf|uence dec|s|ons of a centra|
nature (e.g. approva| of venue br|efs,
des|gns and spec|f|cat|ons) to be
|mp|emented by other agenc|es, as we|| as
determ|n|ng spec|f|cat|ons of common
|tems (e.g. track] turf, seat|ng, sports
equ|pment, certa|n |tems of over|ays)
wh|ch were to be ordered by |mp|ement|ng
agenc|es. Many of Lhese declslons were
Laken/ drlven by Lhe CC ln a hlghly non-
LransparenL, lnequlLable and arblLrary
manner.
4.3.6 Changes |n CC's Governance
Structure from Cctober 2009
ln hls leLLer Lo Lhe M daLed 26 SepLember
2009, Shrl M S Clll, Lhe Lhen MlnlsLer, ?AS
referred Lo a leLLer from Mr Mlke lennell,
resldenL CCl, ra|s|ng doubts about the
ab|||ty and the capab|||ty of the CC to
de||ver the Games to the qua||ty expected,
and sLaLed LhaL, afLer due consulLaLlon, a
llne of acLlon Lo sLrengLhen Lhe
managemenL lnslde Lhe CC was belng
lmplemenLed.
Shrl !arnall Slngh, a reLlred lAS offlcer was
appolnLed as CLC by Lhe CC ln CcLober
2009. Pls efflcacy was LoLally blunLed as we
found several lnsLances where querles
ralsed by hlm were lgnored and proposals
were approved by Lhe Chalrman and LMC
desplLe hls expressed reservaLlons.
A llnance Sub-CommlLLee (lSC) was
consLlLuLed by Lhe M?AS ln november 2009,
comprlslng enLlrely of CovernmenL
nomlnees on Lhe L8 l.e. SecreLary, SporLs,
SecreLary, urban uevelopmenL, Addl
SecreLary, MlnlsLry of llnance and CLC as
convenor member. lnlLlally, lLs mandaLe was
Lo veL all proposals meanL for Lhe L8. LaLer
ln uecember 2009, Lhls was expanded Lo
4.3.6.1 Appo|ntment of CLC, CC
4.3.6.2 I|nance Sub-Comm|ttee
1hese CC-dr|ven dec|s|ons had ser|ous
f|nanc|a| |mp||cat|ons, but were not
ref|ected |n the expend|ture of the CC,
wh|ch was on|y restr|cted to act|v|t|es
d|rect|y assoc|ated w|th stag|ng the
Games. 1h|s a|so had the effect of
|mp||c|t|y sh|ft|ng respons|b|||ty for such
quest|onab|e dec|s|ons from the CC to
other agenc|es.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
desp|te the CLC's recommendat|on, the
Cha|rman, at h|s |eve|, dec|ded to go for
retender|ng, |nstead of send|ng the
proposa| to L8.
cover all proposals golng Lo Lhe LMC as well.
1he lSC funcLloned from november 2009
Llll !uly 2010, when lasL 1rack CommlLLees
were seL up by Lhe CoM Lo examlne all
proposals above 8s 23 lakh for dlrecL
approval by Lhe Chalrman and subsequenL
raLlflcaLlon by Lhe L8.
ln our vlew, M?AS consLlLuLed Lhls
CommlLLee Loo laLe ln Llme (less Lhan a year
from Lhe Cames) Lo have adequaLe and
effecLlve lmpacL. We observed LhaL Lhe
CommlLLee dlscussed Lhe proposals ln
deLall, ralsed lssues, buL flnally
recommended all proposals for approval by
L8. ln many slLuaLlons, Lhe CommlLLee
members expressed Lhelr helplessness, as
Lhe proposals were presenLed as falL
accompll and re-Lenderlng was noL
approprlaLe or posslble glven Lhe pauclLy of
Llme. no proposals were re[ecLed because
any furLher delay would have adversely
lmpacLed Lhe organlsaLlon of Lhe Cames.
1hey were also noL ln a poslLlon Lo make
comprehenslve changes Lo Lhe Lenderlng
process. olnLlng ouL deflclencles/
lnadequacles ln proposals aL Lhe elevenLh
hour would noL have faclllLaLed execuLlve
declslon maklng.
Many declslons (e.g. cancellaLlon of Lhe flrsL
caLerlng bld) wenL Lo Lhe Chalrman, who dld
noL allow lL Lo go Lo Lhe L8 (and by
lmpllcaLlon, Lhe llnance Sub CommlLLee).
When Lhe caLerlng conLracL flnally wenL Lo
Lhe lSC, |t was Apr|| 2010, by wh|ch t|me
no other opt|ons were ava||ab|e.
1he effecLlveness of such commlLLees was
furLher reduced by (a) slLuaLlons where
proposals dld noL go beyond Lhe Chalrman
Lo Lhe L8 (b) Chalrman made subsequenL
declslons, whlch wenL agalnsL Lhe L8/ lSC
declslons/ recommendaLlons e.g. counLers
for LlckeLlng. lor example, on caLerlng,
4.3.6.3 Iast 1rack Comm|ttees
1he approval for expendlLure for Lhe
Cpenlng and Closlng Ceremonles was
already on a fasL Lrack mechanlsm ln
!anuary 2010. SubsequenLly, from 1 AugusL
2010 onwards, all flnanclal proposals of Lhe
CC were Laken up for approval by Lhe lasL
1rack CommlLLees (whlch puL up cases
dlrecLly for Lhe Chalrman's approval and
posL facLo approval by Lhe L8) LhaL replaced
Lhe process Lhrough Lhe llnance Sub-
CommlLLee as per Lhe declslon Laken ln Lhe
23Lh meeLlng of Lhe new CoM on 26 !uly
2010.
If a I|nance Sub Comm|ttee was needed
for effect|ve government overs|ght and
contro|, |t shou|d have been appo|nted
much ear||er (by around m|d-2008). 8y
end-2009, |t was too |ate. At th|s t|me,
the on|y mechan|sm that cou|d have
worked was effect|ve takeover of the
CC's funct|ons by des|gnated off|c|a|s
w|th fu|| execut|ve powers.
4.4 Co-ord|nat|on Comm|ttees
lannlng, monlLorlng and overslghL of Lhe
CWC-2010 ro[ecL, as well as co-ordlnaLlon
of acLlvlLles across organlsaLlons/ agencles,
was conducLed Lhrough a hosL of co-
ordlnaLlon commlLLees aL varlous levels.
1he followlng Lable deplcLs Lhe mulLlpllclLy
of commlLLees creaLed aL dlfferenL polnLs of
Llmes for Lhe Cames ro[ecL:
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1oble 4.5 - Molo co-otJlootloo commlttees
Iunct|on Comm|ttee
Note. - closeJ befote bostloq of tbe Comes lo Octobet 2010 committee hiqh/iqhted in ked
er|od of Iunct|on|ng
May 2006 Lill daLc, hcld 112
mccLings
July 2006 onwards
ScpLcmbcr 2009 onwards
April 2008 Lo Junc 2009, hcld 5
mccLings (disconLinucd from
January 2010)
Junc 2009 Lo May 2010, hcld 11
mccLings
Junc-July 2010, hcld
7 mccLings
Novcmbcr 2008 Lo Junc 2010
Junc Lo July/ AugusL 2010
May Lo ScpLcmbcr 2005 (dccidcd
in January 2005)
Novcmbcr 2005 Lo January 2006
(dccidcd in ScpLcmbcr 2005)
lmplcmcnLaLion of
dccisions of GoM
rcgarding Gamcs Pro|ccL
Ovcrscc and approvc
and sccuriLy
arrangcmcnLs
MoniLoring all aspccLs of
CWG conccrning Prasar
BharaLi and Prcss
lnformaLion Burcau
Co-ordinaLion wiLh CM,
GNCTD, Chairman, OC
and OLhcrs
MoniLoring Lhc progrcss
of infrasLrucLurc works
Discuss issucs for co-
ordinaLcd and spccdy
complcLion of works
Vcnuc-spccific
commiLLccs
Vcnuc-spccific
commiLLccs
Supcrvisc and dcal wiLh
all financial maLLcrs
Supcrvisc and dcal wiLh
all financial maLLcrs (wiLh
Planning Commission
rcprcscnLaLivc)
CommIttee of
5ecretarIes (Co5)
Co-ordInatIon
CommIttee (MYA5)
lnfrastructure
MonItorIng
CommIttee of MYA5
(created by MYA5
Co-ordInatIon
CommIttee)
Venue Co-ordInatIon
CommIttee
5tadIum
CommIttees
ReconstItuted
5tadIum CommIttees
FInance 5ub-
CommIttee of GoM
Empowered FInance
5ub-CommIttee
of GoM
Empowered
5ecurIty
CommIttee
OversIght
CommIttee
Go|
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Iunct|on Comm|ttee er|od of Iunct|on|ng
Dccidcd in OcLobcr 2004,
Ncvcr consLiLuLcd
Dccidcd in January 2005, Ncvcr
consLiLuLcd
From ScpLcmbcr 2006 onwards
From Fcbruary 2009 onwards
MoniLor consLrucLion of
rcquircd infrasLrucLurc
wiLhin spccificd Limc,
rcprcscnLaLivcs of
ccnLral minisLrics/ sLaLc
GovcrnmcnL /agcncics
To look afLcr all issucs
LhaL comc undcr Lhc
|urisdicLion of GNCTD as
pcr consLiLuLion
FaciliLaLion of clcaranccs
by various agcncics of
CWG rclaLcd pro|ccLs
To approvc vcnuc-wisc
plans for insLallaLion of
CCTV camcras and
acccss conLrol
cquipmcnL, covcrcd all
vcnucs, including cx-
Dclhi vcnucs,
irrcspccLivc of owncrship
ScruLinisc all dccisions
placcd bcforc OC EB,
rcvicw funcLional arca-
wisc cxpcndiLurc
bcLwccn Lwo EB
mccLings
Novcmbcr 2009 Lo July 2010,
From July 2010, FasL Track
CommiLLcc (inLcrnal Lo OC) was
iniLiaLcd
Empowered
CommIttee under LG
FInance
5ub-CommIttee
for OC
Government of Nat|ona| Cap|ta| 1err|tory of De|h|
Crgan|s|ng Comm|ttee
(CLher commlLLees/ sub-commlLLees of CC dld noL have exLernal represenLaLlon)
ChIef MInIster's
5ub CommIttee
Empowered
CommIttee
under C5
5teerIng
CommIttee
A deLalled charL of Lhe lnLerplay of
dlfferenL agencles and commlLLees
lnvolved wlLh Lhe dellvery of CWC-
2010 ls enclosed as a pull-ouL
charL.
1he above mu|t|p||c|ty of comm|ttees, many of
wh|ch were created, d|sbanded and]or
reconst|tuted at d|fferent po|nts of t|me dur|ng
200S-10, ref|ected an ad hoc approach and was
not conduc|ve to a focused, stream||ned,
governance mechan|sm w|th stewardsh|p for
the Games ro[ect as a who|e. 1h|s a|so |ed to
comp|ete d|ffus|on of accountab|||ty.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ln addlLlon, oLher ma[or audlL flndlngs ln
respecL of Lhe co-ordlnaLlon commlLLees are
summarlsed below:
4.4.1 Comm|ttee of Secretar|es (CoS)
1he CoM declded Lo consLlLuLe a CoS ln
!anuary 2003, wlLh responslblllLy for
lmplemenLaLlon of Lhe declslons of Lhe
CoM. Powever, Lhe CoS had lLs flrsL meeLlng
only ln May 2006.
lurLher, whlle Lhe CoS held 112 meeLlngs, lL
became, ln effecL, a forum for monlLorlng
and co-ordlnaLlon, raLher Lhan
lmplemenLlng CoM declslons.
4.4.2 Comm|ttees Const|tuted by MAS
A CoordlnaLlon CommlLLee (whlch

lncluded MlnlsLer, ?AS, Chalrman, CC,
and CM, uelhl) came lnLo exlsLence ln
Aprll 2008, buL was dlsconLlnued ln !une
2009, afLer holdlng flve meeLlngs.
1he lnfrasLrucLure MonlLorlng
CommlLLee, whlch was consLlLuLed ln
!une 2009 pursuanL Lo a declslon of Lhe
Co-ordlnaLlon CommlLLee, was headed
by SecreLary, SporLs and was responslble
for apprlslng Lhe Co-ordlnaLlon
CommlLLee of Lhe lmporLanL
developmenLs relaLlng Lo commlsslonlng
of dlfferenL venues. 1hls commlLLee
ceased Lo funcLlon afLer May 2010, and
was rendered redundanL by Lhe CoS
declslon of !une 2010 for consLlLuLlon of
Lhe venue Co-ordlnaLlon CommlLLee.
1he venue Co-ordlnaLlon CommlLLee
funcLloned for Lwo monLhs durlng !une
- !uly 2010. 1hls commlLLee, whlch
conslsLed of SecreLary, SporLs and
Chalrman of all Lhe SLadlum
CommlLLees, came up pursuanL Lo Lhe
CoS declslon of !une 2010, buL was
never formally consLlLuLed. ln lLs lasL
meeLlng on 29 !uly 2010, lL was declded
Lo hand over all Lhe sLadla Lo Lhe CC.
SLadlum CommlLLees had been

consLlLuLed for each sLadlum ln
november 2008, buL were reconsLlLuLed
ln !une 2010, pursuanL Lo Lhe May 2010
declslon of Lhe CoS Lo empower Lhem
wlLh declslon maklng powers. 1here
were elghL sLadlum commlLLees, whlch
funcLloned Llll !uly 2010 (excepL for Lhe
SAl SLadlum CommlLLee, whlch
funcLloned Llll 31 AugusL 2010).
ln AugusL 2010, Col appolnLed Len
senlor offlcers (one for each compeLlLlon
venue) Lo coordlnaLe, monlLor and Lake
lmmedlaLe declslons for each
compeLlLlon venue, and Lhe SLadlum
CommlLLees ceased Lo meeL LhereafLer.
osslbly Lhls Leam of offlcers under Lhe
dlrecL supervlslon of Lhe CablneL
SecreLary was Lhe only effecLlve sLep
whlch flnally enabled Lhe conducL of Lhe
Cames and saved Lhe counLry enormous
embarrassmenL.
C|ear|y, the success|on of comm|ttees
formed and abrupt|y she|ved from t|me to
t|me under the aeg|s of MAS cou|d not
ensure the handover of the stad|ums even
by Iu|y 2010, forc|ng the GoI to take
emergent f|ref|ght|ng measures |n August
2010. 1h|s was the dec|s|ve step wh|ch
u|t|mate|y fac|||tated the conduct of the
Games. 1he efforts of MAS towards
estab||sh|ng a mechan|sm for proper
mon|tor|ng and rev|ew of var|ous
arrangements towards de||very of the
games were |neffect|ve.
It must be noted that the MAS was
hand|capped by |ts |nab|||ty to exerc|se
overs|ght and contro| over the funct|on|ng
of the CC. Wh||e, |n theory, th|s shou|d not
have been a||owed to hamper the
construct|on of the stad|ums, the ro|e of
the CC |n approv|ng venue des|gns and
spec|f|cat|ons at var|ous po|nts of t|me
and the de|ays there|n const|tuted a ma[or
|mped|ment to appropr|ate overs|ght
arrangements even for venue
deve|opment.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.6.1 Cverv|ew
1he CoM ln lLs Lhlrd meeLlng, ln !anuary
2003, declded LhaL LC would have overall
responslblllLy regardlng Lhe Cames wlLh
speclflc reference Lo securlLy, law and order
and maLLers under uuA. CM, CnC1u would
look afLer all lssues under Lhe [urlsdlcLlon of
4.S Web-based ro[ect
Mon|tor|ng System (MS)
ln AugusL 2006, Lhe rlme MlnlsLer had
deslred Lhe esLabllshmenL of a sysLem for
provldlng monLhly sLaLus reporLs on
progress on Cames-relaLed acLlvlLles.
Powever, M?AS acLed only ln Aprll 2007, by
12
appolnLlng S1l as Lhe pro[ecL manager,
who, ln Lurn, appolnLed 1CS ln May 2007 for
developmenL of Lhe ro[ecL MonlLorlng
SysLem (MS). 1he lnformaLlon made
avallable Lo us lndlcaLes MS generaLed
reporLs for Lhe perlod only from CcLober
2008 onwards (Llll !uly 2010).
Cur audlL scruLlny revealed Lhe followlng:
1he MS dld noL cover acLlvlLles of Lhe
CC, whlch furLher conflrms LhaL Lhe CC
effecLlvely remalned ouL of Lhe Col's
monlLorlng and conLrol efforLs.
1he very purpose of Lhe MS ln
monlLorlng progress of dlfferenL
acLlvlLles was vlLlaLed, as Lhe Llmellnes
agalnsL whlch such progress was
measured were changed numerous
Llmes, renderlng Lhe reporLs compleLely
lneffecLlve. lurLher, Lhere were no
mechanlsms for verlfylng Lhe
auLhenLlclLy of revlslon of Llmellnes.
ueLalled lnsLances of Lhe reducLlon ln
Lhe percenLage of planned work
beLween CcLober 2008 and !uly 2010,
whlch served Lo deplcL a mlsleadlng"
plcLure of progress, are lndlcaLed ln
Annexe - 4.1.
4.6 ko|e of LG, De|h| and

GNC1D
1he procedure for ensurlng Lhe

rellablllLy of daLa, e.g. audlL Lrall, daLa
valldaLlon procedures eLc. were absenL.
ln facL, SecreLary, SporLs, had also
commenLed adversely ln March 2010 on
Lhe dlscrepancles beLween Lhe daLa
submlLLed by offlclals ln Lhe CWu, uuA
and oLher agencles Lo Lhe CC consulLanL
for Lhe MS and Lhe correspondlng daLa
submlLLed Lo Lhelr own hlgher
auLhorlLles.
1he MS dld noL have faclllLles for
capLurlng follow-up acLlon on lssues/
deflclencles flagged ln Lhelr monLhly
reporLs (as recommended ln our SLudy
8eporL of !uly 2009). 1hls, furLher,
conLrlbuLed Lo Lhe lnadequaLe follow-up
acLlon by Lhe M?AS ln conLrolllng delays
ln progress of varlous Cames relaLed
acLlvlLles.
In our Study keport of Iu|y 2009, we
had h|gh||ghted |nstances of four
venues, where the p|anned pro[ect
progress was rev|sed downwards from
May 2009 to Iune 2009, so as to dep|ct
better progress. Instances of such
"downward rev|s|ons" cont|nued to
occur t||| Apr|| 2010.
12
5oftwote 1ecbooloqy lotk of loJlo (51ll)
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
CnC1u. 1he maln areas of acLlvlLy for LC
and CnC1u were:
1he Cames vlllage under uuA,
ClLy lnfrasLrucLure by Wu, CnC1u,
uuA, nuMC and MCu,
venues under uuA, Wu, CnC1u, and
nuMC, and
ClLy lmprovemenL pro[ecLs under Wu,
CnC1u, nuMC and MCu
1he maln CommlLLees seL up by CnC1u for
plannlng, coordlnaLlng and monlLorlng Lhe
execuLlon of Lhese pro[ecLs are descrlbed
below.
4.6.2 Lmpowered Comm|ttee under the

Ch|ef Secretary, De|h|
ln SepLember 2006 an Lmpowered
CommlLLee under Lhe Chalrmanshlp of Chlef
SecreLary, CnC1u, was seL up Lo expedlLe
clearance ln a Llme bound manner by
varlous agencles, and coordlnaLlon and
close monlLorlng of all pro[ecLs. 1he
CommlLLee meL 27 Llmes beLween CcLober
2006 and CcLober 2010. Powever, Lhe
CommlLLee was noL empowered Lo lssue
any sancLlon or approval, whlch was lssued
Lhrough normal organlsaLlonal/
deparLmenLal channels. 1hese declslons
were processed Lhrough Lhe esLabllshed
ueparLmenLal channels e.g. Works Advlsory
8oard/ 1echnlcal CommlLLee eLc, and laLer
sub[ecL Lo scruLlny by Lhe CnC1u
LxpendlLure llnance CommlLLee, before
submlsslon Lo Lhe CnC1u CablneL for
approval and subsequenL lssue of work
orders.
4.6.3 Lngagement of Shr| Narayanswam|
as Adv|sor CWG - 2010
ln SepLember 2009, LC, uelhl and CM,
CnC1u appolnLed Shrl 8. narayanswaml
(who reLlred ln AugusL 2009 as Chlef
SecreLary, CnC1u) as Speclal Advlsor(CWC).
Pls lnlLlal appolnLmenL was for co-
ordlnaLlon and monlLorlng of pro[ecLs of
CWC. Pe was subsequenLly appolnLed
Chalrman, SLeerlng CommlLLee ln
SepLember 2009 and conLlnued Lo be
Chalrman, unlfled 1rafflc and 1ransporLaLlon
lnfrasLrucLure lannlng and Lnglneerlng
CenLre (u11lLC).
4.6.4 Steer|ng Comm|ttee
1he SLeerlng CommlLLee seL up ln
SepLember 2009 prepared Lhe securlLy
plans for venues and deploymenL of C88n
(Chemlcal, 8lologlcal, 8adlologlcal and
nuclear) measures for Lhe CWC.
4.6.S Un|f|ed 1raff|c and 1ransportat|on
Infrastructure (|ann|ng and
Lng|neer|ng) Centre (U11ILC)
SeL up by a SepLember 2008 clrcular of LC,
uelhl, Lhls group was responslble for
preparaLlon of LransporL plans for Lhe
Cames famlly and specLaLors ln respecL of
slx sLand alone venues, Lhe Cames vlllage,
llnkages from alrporL Lo Lhe Cames vlllage,
l1C and oLher venues where Lhe Cames
famlly was Lo be accommodaLed.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
4.6.6 Mu|t|p|e ||nes of command
1he mulLlpllclLy of agencles carrylng ouL

overlapplng/ slmllar acLlvlLles (e.g. roads
belng Lhe responslblllLy of Wu, CnC1u,
MCu, nuMC, uuA and even nPAl) as well
as lssues relaLlng Lo sLaLuLory approvals and
clearances from several agencles (uuAC,
ASl, 8allways eLc.) resulLed ln subsLanLlal
delays ln pro[ecL execuLlon. 1hls was
compounded by Lhe lack of a slngle wlndow
mechanlsm for Llmely approvals and
execuLlon of Cames-relaLed pro[ecLs.
ConsequenLly, some lmporLanL pro[ecLs had
Lo be dellnked due Lo non clearance from
Lhe regulaLory agencles:
LlevaLed LasL WesL corrldor,
ShasLrl ark 1unnel Corrldor,
S Mukher[ee Marg Corrldor, and

8lghL Lurn slgnal free aL [uncLlon aL !8
1lLo Marg and Slrl lorL 8oad for Slrl lorL
SporLs Complex.
Cb[ecLlons by ASl and uuAC delayed Lhe
consLrucLlon of Lhe 8arapullah nallah
flyover.
ln addlLlon, Lhe followlng lmporLanL pro[ecLs
were sLarLed laLe and could also noL be
compleLed ln Llme for Lhe Cames:
Shlva[l SLadlum,
ConnaughL lace facade resLoraLlon
work,
lmprovemenL of surroundlngs of new
uelhl 8allway SLaLlon,
SLreeLscaplng and sLreeL furnlLure works
C
n
A
1
L
k
|ann|ng
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1here wos o seven-yeor window from the time of oword of cw6-2010 to New ue/hi to its
execution, which wos not oppropriote/y uti/ised. 1he time window from November 200l to
mid-200, which cou/d hove been effective/y used for p/onninq, c/eoronces ond opprovo/s,
wos wosted. 1he Oc itse/f wos reqistered on/y in lebruory 2005, whi/e k5 wos oppointed
by the Oc os the consu/tont for preporotion of venue briefs ond site p/ons on/y in lu/y 200.
1his /ed to coscodinq de/oys in o// subsequent octivities, since the return briefs, concept
desiqns ond detoi/ed desiqns ond drowinqs for venues cou/d be prepored on/y thereofter.
ven thereofter, specificotions ond desiqns for venues continued to be revised by the Oc
ond lnternotiono/ 5portinq lederotions ti// /ote stoqes.
1he fino/isotion ond opprovo/ of the two key p/onninq documents for the 6omes - the
6enero/ Orqonisotion P/on ond 6omes Moster 5chedu/e - were de/oyed by more thon
three yeors. Operotiono/ p/ons for different lunctiono/ 4reos {l4s) os we// os other
p/onninq documents of the Oc were o/so de/oyed substontio//y.
4 comprehensive, over-orchinq p/on identifyinq the requirement of city infrostructure ond
qops therein for hostinq the 6omes wos essentio/ for ensurinq on inteqroted perspective.
nowever, we found evidence of on/y o presentotion to the committee of 5ecretories in
uecember 200, which cou/d, ot best, be termed os on opprooch to on infrostructure
deve/opment p/on, without the necessory /eve/ of detoi/ ond riqour. uetoi/ed p/onninq for
stote-of-the-ort city infrostructure for cw6-2010 wos substontio//y de/oyed, ond wos done
in on od hoc foshion without o "bottom-up" ossessment of needs ond requirements. we
o/so found indicotions of "stop-stort" p/onninq ond imp/ementotion in severo/ oreos.
lurther, the de/oyed p/onninq resu/ted in odequote time not beinq ovoi/ob/e for obtoininq
stotutory c/eoronces from vorious oqencies.
(MlnlsLrles/ ueparLmenLs of Col, CnC1u,
CC and oLhers) were handlcapped by Lhe
lack of experlence ln organlslng an evenL of
Lhls magnlLude, and were dependenL on Lhe
advlce offered by a hosL of consulLanLs, as
well as Lhe CCl and lLs represenLaLlves. 1hls
also resulLed ln requlremenLs belng
ldenLlfled/ amended ln an ad hoc and
sporadlc manner, ofLen aL a laLe sLage.
1he lasL lnLernaLlonal mulLl-sporL evenL held
ln lndla was Lhe lx Aslan Cames held ln
november- uecember 1982. Slnce Lhen,
Lhere had been masslve changes ln Lhe
scale, formaL, presenLaLlon, Lechnology and
Lhe fundlng model assoclaLed wlLh such
evenLs. All Lhe agencles lnvolved
S.1 Cverv|ew
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 3 - lannlng
1he non-uLlllsaLlon of Lhe Llme wlndows
beLween november 2003 and mld-2006 and
Lhe consequenL compresslon ln Lhe
remalnlng Llme avallable are deplcLed
below:
1he CWC ls awarded Lo a candldaLe clLy by
Lhe CCl aL lLs Ceneral Assembly seven years
ln advance of evenLual hosLlng. 1he seven
year wlndow (from november 2003 Lo Lhe
hosLlng of Lhe Cames ln CcLober 2010) was
ldenLlcal Lo Lhe Llme avallable for organlslng
oLher such mega mulLl sporL lnLernaLlonal
evenLs such as Lhe Melbourne CWC 2006,
Lhe 8el[lng Clymplcs 2008 and Lhe London
Clymplcs 2012, Lhls faclllLaLes adopLlon of a
phased approach. lor example, Lhe
organlsers of Lhe 8el[lng Clymplcs 2008 and
Lhe London Clymplcs 2012 followed a
Lhree-phase approach:
2 years for plannlng and approvals,
4 years for execuLlon, consLrucLlon and
developmenLs, and
1 year for LesL evenLs and Lrlal runs.
1he bld documenL for CWC-2010 of May
2003 envlsaged a four phase approach, as
1
under :
S.2 Seven ear W|ndow from

Award to nost|ng of
Games not ut|||sed
hase I
hase II
hase III
hase IV
|an
Create
De||ver
Conc|ude
!anuary 2004 Lo May 2006
May 2006 Lo May 2008
May 2008 Lo uecember 2010
uecember 2010 Lo March 2011
1
1be Ceoetol Otqoolsotloo lloo (COl) opptoveJ lo
Aoqost 2007 loJlcoteJ o foot pbose Comes lloooloq
ltocess - lloo, Moblllse, xecote ooJ leqocy, bot
wltboot loJlcotloq tlmelloes fot eocb pbose, wblcb moJe
tbls pboseJ" opptoocb lotqely meooloqless.
As reported by us |n our Study keport of
Iu|y 2009, we found no ev|dence of the
four phase approach be|ng trans|ated
|nto act|on dur|ng the f|rst phase years
of 2004 to 2006, nor dur|ng a ma[or
port|on of hase-II. In effect, pro[ect
|mp|ementat|on d|d not fo||ow the
phase-w|se approach env|saged. 8oth
p|ann|ng and execut|on commenced
on|y |n |ate 2006. 1hese de|ays had a
cascad|ng effect on a|| subsequent
act|v|t|es.
hase-w|se approach
not |mp|emented
woste of tlme wloJow betweeo
Novembet 200J ooJ mlJ-2006
Date Lvent
November
2003
5eptember
2004
October 2004
January 2005
February 2005
March 2005
May-JuIy 2006
Award of Gamcs Lo
Dclhi, signing of HCC
ConsLiLuLion of GoM
Dccisions Lo consLiLuLc
Apcx CommiLLcc and
lnLcrnaLional SporLs
Division (lSD) of
MYAS
ConsLiLuLion of CoS
RcgisLraLion of OC
ConsLiLuLion of Apcx
CommiLLcc, signing of
HCC by OC
FirsL mccLings of CoS,
Apcx CommiLLcc and
CoS, crcaLion of lSD
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 3 - lannlng
under Lhe PCC, Lhe Lwo key plannlng
documenLs for Lhe Cames - Lhe Ceneral
CrganlsaLlon lan (CC) and Lhe Cames
MasLer Schedule (CMS) - should have been
flnallsed by Lhe CC and approved by Lhe
CCl by May 2004 (l.e. wlLhln 6 monLhs of
Lhe PCC).
S.3 De|ayed I|na||sat|on of
Genera| Crgan|sat|on |an
(GC) and Games Master
Schedu|e (GMS)]
As po|nted out |n our Study keport of
Iu|y 2009, the GC and GMS were
f|na||zed for CGI's approva| on|y |n
August 2007 and November 2008
respect|ve|y.
In fact, the GMS was a|so rev|sed and
a|tered severa| t|mes. Dur|ng the
f|na||zat|on of our Study keport, the CC
responded that the p|ann|ng of the
Games was cha||eng|ng and comp|ex,
and p|ann|ng documents cont|nued to
evo|ve t||| Games t|me due to evo|v|ng
dependenc|es between funct|ona| areas
and de||very partners.
De|ay |n prepar|ng and f|na||z|ng the
GC and GMS by more than three years
cr|t|ca||y affected preparat|ons for the
Games, th|s was compounded by the
"evo|ut|onary" p|ann|ng process, ar|s|ng
out of changes |n requ|rements at |ate
stages.
De|ayed I|na||sat|on of
GC and GMS
comptessloo of tlme ovolloble Joe to looctloo opto mlJ-2006
1|me
l|ae
Jaaaary
Jaae
24
Jaaaary
Jaae
25
Jaaaary
Jaae
2
Jaaaary
Jaae
27
Jaaaary
Jaae
28
Jaaaary
Jaae
29
Jaaaary
Jaae
21
Jaaaary
Jaae
211
Ja|y
Detemaer
24
Ja|y
Detemaer
25
Ja|y
Detemaer
2
Ja|y
Detemaer
27
Ja|y
Detemaer
28
Ja|y
Detemaer
29
Ja|y
Detemaer
21
P|aa
P|aa 0reate 0e||ver
ke s|ga|t|caat
p|aaa|ag act|v|ty
P|aaa|ag
P|aaa|ag
aa
0reat|ea
P|aaa|ag, 0reat|ea aa
0e||very
0
e
a
c
|
a
v
e
0
e
a
c
|
a
v
e
kctaa|
1he Ceneral CrganlsaLlon lan (CC) ls a
hlgh level masLer plannlng documenL,
whlch seLs Lhe sLrucLural framework and
Llmellnes for Lhe overall organlzaLlon of
Lhe Cames. lL ls Lo arLlculaLe Lhe way Lhe
Cames would be planned and dellvered,
lncludlng Lhe allocaLlon of responslblllLles.
lmporLanLly, lL conslders all sLakeholders
lnvolved ln sLaglng Lhe Cames (noL [usL
Lhe CC), lncludlng Lhose responslble for
developmenL of faclllLles and
lnfrasLrucLure.
1he CMS ls a roadmap, whlch lays ouL Lhe
deLalled Llmellnes for sLarLlng and
compleLlng varlous acLlvlLles ln a coherenL
and co-ordlnaLed manner.
Importance of GC and GMS
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 3 - lannlng
CorporaLe hosplLallLy plan,

Sponsor servlclng sLraLegy,
lan for explolLaLlon of commerclal
rlghLs
We found LhaL many of Lhese CperaLlonal
lans underwenL subsequenL revlslons, and
some plans were flnallsed only afLer Lhe
concluslon of Lhe Cames. lurLher, ln many
lAs, Lhese plans were noL acLually
operaLlonallsed and remalned LheoreLlcal
lnpuLs, and Lhe acLual acLlvlLles of Lhe lA
dlffered slgnlflcanLly from LhaL lndlcaLed ln
Lhe CperaLlonal lans.
lor ensurlng proper plannlng of venue
speclflcaLlons and Llmely execuLlon, a
phased approach was declded by Lhe
lnfrasLrucLure Co-ordlnaLlon CommlLLee of
CC ln AugusL 2007:
CC |ans
S.S |ann|ng for Venues
As of May 2009, draft operat|ona| p|ans
had been prepared for on|y 16 out of 34
IAs. Subsequent|y, |n response to the
draft Study keport, CC stated that a||
the 34 Cperat|ona| |ans had been
f|na||zed, and CGI approva| wou|d be
obta|ned by the rev|sed dead||ne of 31
August 2009.
De|ayed reparat|on of
Cperat|ona| |ans
ln slmple Lerms, Lhe venue brlef prepared
by Lhe CC consulLanL (LkS) descrlbed Lhe
sporLlng and oLher requlremenLs for each
compleLlon and Lralnlng venue,
lncorporaLlng Lhe speclflcaLlons of Lhe
respecLlve lnLernaLlonal SporLlng
lederaLlons.
Cn Lhe basls of Lhls venue brlef, Lhe venue
owners/ lmplemenLlng agencles, asslsLed
by Lhelr consulLanLs, were requlred Lo
Importance of Venue 8r|ef
and Approva|
S.4.1 Cperat|ona| |ans of IAs
1he CC scoped Lhe Cames ro[ecL lnLo 34
luncLlonal Areas (lAs), wlLh clearly
demarcaLed acLlvlLles and ob[ecLlves.
CperaLlonal plans had Lo be prepared for
each of Lhese funcLlonal areas.
S.4.2 Cther |ann|ng Documents
ln addlLlon Lo Lhe CC and CMS, Lhe PCC

also sLlpulaLed several plannlng documenLs
and sLraLegles, whlch requlred CCl
approval. We found LhaL ln some cases, Lhe
plans remalned [usL plans and were noL
LranslaLed lnLo acLlon e.g:
lan for lnLernaLlonal and naLlonal
buslness programme,
1|me||ne Stage
Vcnuc appraisal sLudy
by OC consulLanL and
submission of vcnuc
bricf Lo owncrs
Submission of rcLurn
bricf and conccpL
dcsign by vcnuc
owncrs
OC's approval of
conccpL dcsign and
complcLc final dcsign
SLarL of consLrucLion
ComplcLion of
consLrucLion
Dcccmbcr
2006
May 2007
Junc - July
2007
ScpL. 2007
Dcccmbcr
2009
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 3 - lannlng
speclflcally for Lhe requlremenLs of CWC-
2010, CnC1u lndlcaLed LhaL ln !une 2004
lLself Lhey had Laken up wlLh Lhe llnance
MlnlsLer Lhe need for a speclflc allocaLlon of
funds Lo fulfll Lhe requlremenLs of Lhe clLy
governmenL for CWC-2010. 1hls was
followed by a leLLer ln May 2003 Lo M?AS,
lndlcaLlng deparLmenL-wlse deLalls of Lhe
requlremenL of addlLlonal funds and lLs
[usLlflcaLlon. ln Lhe 9Lh meeLlng of Lhe CoM
ln !anuary 2006 (where Lhe llsL of
compeLlLlon venues for sporLs dlsclpllnes
was flnallsed), lL was declded LhaL CnC1u
should lnclude all lLs requlremenLs coverlng
clLy lnfrasLrucLure and venue lnfrasLrucLure
ln lLs proposal Lo Lhe lannlng Commlsslon.
SubsequenLly, a commlLLee headed by
Member SecreLary, lannlng Commlsslon
and lncludlng represenLaLlves of CnC1u
flnallsed a llsL of lnfrasLrucLure pro[ecLs
whlch was presenLed aL Lhe CoS meeLlng
held on 12 uecember 2006. CnC1u
lndlcaLed LhaL Lhe presenLaLlon (conslsLlng
of 66 slldes) LlLled ltepotloq uelbl fot 2010
ooJ 8eyooJ - Maklng lL a world class
caplLal" made Lo Lhe CoS consLlLuLed a
comprehenslve clLy developmenL plan for
CWC-2010.
We do noL agree wlLh CnC1u's response.
1he presenLaLlon merely Louched on lssues
such as
ModernlsaLlon of Lhe alrporL, and
connecLlvlLy LhereLo (meLro/ road/
bypasses),
MeLro and road connecLlvlLy Lo !Ln
SLadla, Cames vlllage, nCluA, AlrporL
eLc. and proposed 24 flyover/ brldges
and 12 car parklng slLes,
upgradaLlon of ConnaughL lace and
areas surroundlng new uelhl/ Cld uelhl
8allway sLaLlons, Chandnl Chowk/ !ama
Mas[ld, and
Large scale requlremenLs for dralnage,
sewage, solld wasLe managemenL,
waLer, power supply
Lven afLer our !uly 2009 SLudy 8eporL,

offlclals of lmplemenLlng agencles lndlcaLed
LhaL Lhere were furLher changes Lo Lhe
speclflcaLlons and drawlngs aL Lhe lnsLance
of CC, alLhough documenLaLlon of such laLe
changes could noL be produced Lo us.
As |nd|cated |n our Study keport of Iu|y
2009, there were de|ays at a|| stages of
the above process. Iurther, f|na|
spec|f|cat|ons and draw|ngs were st|||
be|ng rev|sed and mod|f|ed |n m|d-2009,
and had not yet been frozen. A|so, a||
approva|s granted by CC were on|y of a
cond|t|ona| nature.
De|ayed I|na||sat|on of
Venue Spec|f|cat|ons
prepare reLurn brlefs and concepL
deslgns, whlch lndlcaLed how Lhey
proposed Lo LranslaLe Lhe venue brlef lnLo
reallLy. AfLer approval by CC/ LkS, Lhese
were Lo be furLher developed lnLo
deLalled deslgns and drawlngs, on Lhe
basls of whlch works could be Lendered
and awarded and consLrucLlon
commenced.
|ans for C|ty Infrastructure
Cne of Lhe ob[ecLlves of CWC-2010 was Lo
develop sLaLe of Lhe arL clLy lnfrasLrucLure.
1hese were Lo be underLaken by a
mulLlpllclLy of agencles prlnclpally under
Lhree dlfferenL [urlsdlcLlons - nuMC, MCu,
and Wu (CnC1u). lL was essenLlal LhaL a
comprehenslve, overarchlng plan ldenLlfylng
Lhe requlremenLs of clLy lnfrasLrucLure (and
Lhe gaps Lhereln) for hosLlng Lhe Cames be
prepared and approved aL Lhe hlghesL level.
ln response Lo our requesL for a copy of a
comprehenslve clLy developmenL plan
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 3 - lannlng
plloL pro[ecL was lnlLlaLed only ln May
2008, wlLh works belng awarded only ln
2009.
uelayed plannlng was a key reason for many
lnfrasLrucLure pro[ecLs, envlsaged Lo be
compleLed ln Llme for Lhe Cames, noL belng
compleLed ln Llme. lurLher, such delayed
plannlng resulLed ln non-avallablllLy of
adequaLe Llme requlred for sLaLuLory
clearances from varlous agencles e.g uuAC,
ASl, MoLl/ loresL ueparLmenL eLc. (glven
Lhe normal Llme requlred for due dlllgence
on proposals by Lhese agencles).
We also derlved Lhe lmpresslon LhaL
plannlng and selecLlon of pro[ecLs was, Lo
an exLenL, drlven by Lhe percelved
avallablllLy of funds for Cames-relaLed
pro[ecLs, raLher Lhan a sLrlcLly need-based
analysls.
AL besL, Lhe presenLaLlon Lo Lhe CoS
meeLlng of uecember 2006 could be
Lermed as an approach Lo an lnfrasLrucLure
developmenL plan for CWC-2010, wlLhouL
Lhe necessary level of deLall and rlgour.
We found LhaL deLalled plannlng was done
ln an ad hoc fashlon wlLhouL an lnLegraLed
perspecLlve, and wlLhouL a boLLom-up"
assessmenL of needs and requlremenLs. lL
was also subsLanLlally delayed.
8oads, brldges and flyovers consLlLuLed
crlLlcal clLy lnfrasLrucLure for meeLlng Lhe
requlremenLs of CWC-2010. We found LhaL
Lhere was lack of clarlLy abouL ldenLlflcaLlon
of pro[ecLs dlrecLly llnked Lo Lhe Cames. ln
Lhe meeLlngs of Lhe Lmpowered
CommlLLee, Lhe Chlef SecreLary had
revlewed as many as 86 pro[ecLs. Powever,
ln a posL-Cames consolldaLlon and revlew
exerclse, he only ldenLlfled 23 pro[ecLs as
dlrecLly relaLed Lo Lhe Cames. no
documenLed plan for Lhe selecLlon of Lhese
pro[ecLs (afLer approprlaLe lnLer se
prlorlLlsaLlon and sequenclng) could be
provlded Lo us.
We also found lndlcaLlons of sLop-sLarL"
plannlng and lmplemenLaLlon ln several
areas:
AcLlon for renovaLlon and resLoraLlon of
ConnaughL lace was lnlLlaLed ln 2004,
buL Lhe revlsed u8 was flnally approved
only ln november 2007.
1he plan for sLreeLscaplng and
beauLlflcaLlon was lnlLlaLed ln 2004, buL
acLlon for appolnLmenL of consulLanLs
was lnlLlaLed only ln 2008. lannlng for
sLreeL furnlLure was lnlLlaLed even laLer
(afLer recelvlng Lhe reporLs of Lhe
sLreeLscaplng consulLanLs).
lannlng for lmproved sLreeLllghLlng was
lnlLlaLed ln 2006, buL re-acLlvaLed only ln
2007.
1he need for lmproved slgnages was
hlghllghLed ln lebruary 2006, buL Lhe
S.7 |ann|ng for Cther

Act|v|t|es
lannlng for oLher supporLlng acLlvlLles was
also subsLanLlally delayed:
CablneL approval for fundlng for medla
and broadcasLlng servlces was flnally
recelved only ln CcLober 2008.
Col approval for M1nL as Lhe
LelecommunlcaLlons servlce provlder for
Lhe Cames was recelved only ln
SepLember 2009.
Approval for fundlng arrangemenLs for
Lhe lnLernal SecurlLy SysLem for Lhe
Cames was communlcaLed only ln
SepLember 2009.
Wh||e many of the comp|eted pro[ects

resu|ted |n a substant|a| upgradat|on of
c|ty |nfrastructure, such a process
ref|ected an ad hoc approach, often w|th
a d||ut|on of focus] pr|or|t|es on the
requ|rements for CWG-2010.
C
n
A
1
L
k
I|nanc|a| Management
of the Games ro[ect
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ven whi/e opprovinq submission of the lO4 bid in Moy 200l, ond providinq finoncio/
/iobi/ity ond deficit quorontees in 5eptember 200l, 6ol did not hove o c/eor ond reo/istic
ossessment of the estimoted cost of hostinq the 6omes. 1he lO4 bid of Moy 200l
estimoted on o//-inc/usive cost of just ks. 1200 crore {ofter settinq off operotiono/ expenses
oqoinst estimoted revenues from hostinq the 6omes). 8y controst, the overo// budqet
estimote for cw6-2010 for 6ol ond 6Nc1u {inc/udinq Mcu, NuMc ond other oqencies) os
of October 2010 wos ks. 18,5l2 crore, this exc/udes investments by other oqencies {such os
uMkc ond 44l/ ul4L) on o//ied infrostructure.
we found numerous upword revisions in 6ol's budqet estimotes from time to time. ln
porticu/or, there were seven revisions from 4pri/ 2007 to 5eptember 2010 ot very short
intervo/s, representinq o three fo/d-increose. 1his wos the outcome of o piecemeo/
opprooch odopted for considerotion/ opprovo/ of individuo/ cost e/ements ond /ock of
p/onninq in the initio/ stoqes, os we// os the hiqh/y /imited ond unreo/istic scope of the
budqet oriqino//y envisoqed in the Moy 200l bid document. ln oddition to the increosed
scope of octivities, the other mojor reoson for increosed costs/ estimotes wos de/oys ot
mu/tip/e stoqes, resu/tinq in bunchinq of octivities towords 6omes 1ime ond increoses in
cost, this wos compounded by severo/ instonces of /ock of finoncio/ prudence ond propriety
ocross the ronqe of imp/ementinq oqencies {which ore described in the oreo-specific
chopters).
1he obsence of o sinq/e point of outhority ond occountobi/ity for the 6omes wos
compounded by the eor/y disbondment of the linonce 5ub-committee of the 6oM, which
wou/d hove octed os o specio/ lc for cw6-re/oted proposo/s. 1his contributed to the
piecemeo/ opprooch towords cost estimotion ond budqet opprovo/s.
we o/so found numerous instonces of de/oys in qront of budqetory ond finoncio/ opprovo/s
by the 6ol. whi/e we note thot corefu/ scrutiny of proposo/s is required to ensure due
di/iqence before opprovo/s ond commitment of 6ol funds, processinq ond opprovo/s
shou/d hove demonstroted o qreoter sense of urqency {in view of the considerob/e de/oys
thot hod o/reody token p/oce). 1hese de/oys o/so contributed to the squeete of time ot the
execution stoqe.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ChapLer 6 - llnanclal ManagemenL of Lhe Cames ro[ecL
6.1 8ackground
1he cosLs of hosLlng and conducLlng Lhe CommonwealLh Cames or oLher mulLl-sporL
lnLernaLlonal evenL (Clymplcs, Aslan Cames eLc.) can be broadly dlvlded lnLo Lhe followlng
caLegorles:
6.2 8udget|ng for CWG-2010
OperatIonaI
ExpendIture
This rcprcscnLs Lhc rcvcnuc componcnL of cxpcndiLurc associaLcd
wiLh hosLing Lhc Gamcs, offscL by rcvcnuc gcncraLcd. This is Lhc
aspccL considcrcd for asscssing Lhc "rcvcnuc ncuLraliLy" of Lhc
Gamcs
Thcsc consLiLuLc cxpcndiLurc on capiLal iLcms, wiLh lcgacy valuc
bcyond Lhc Gamcs. Ma|or iLcms includc vcnuc dcvclopmcnL
(including rcnovaLion/ upgradaLion) and upgradaLion of ciLy
infrasLrucLurc (roads, bridgcs, flyovcrs and oLhcr LransporL
scrviccs, powcr upgradaLion pro|ccLs cLc.)
Thcsc rcprcscnL scrviccs providcd frcc of cosL undcr Lhc HCC.
Ma|or iLcms includc sccuriLy, hcalLh scrviccs, Lclccom scrviccs,
Lraffic and firc scrviccs and oLhcr scrviccs.
Thc Gamcs Villagc is cxpccLcd Lo bc a rcvcnuc-gcncraLing/
rcvcnuc ncuLral vcnLurc, whcrc Lhc cosL of consLrucLion (and
accommodaLing aLhlcLcs and oLhcrs) is Lo bc rccoupcd Lhrough
salc of flaLs.
Thcsc includc scrviccs likc mcdia and broadcasLing (which do noL
gcncrally rcquirc GovcrnmcnL cxpcndiLurc), cxpcndiLurc on
prcparaLion of Lcams cLc.
CapItaI ExpendIture
Government/
MunIcIpaI 5ervIces
Games VIIIage
Other /
MIsceIIaneous
5ervIces
6.2.1 8reak Up of 8udget Lst|mates
1he overall budgeL esLlmaLes for CWC 2010
for Col and CnC1u (lncludlng MCu, nuMC
and oLher agencles) as of CcLober 2010 was
8s. 18, 332 crore. A proflle of caLegory- wlse
budgeL esLlmaLes ls glven below:
CLher (M1nL, C&l1, ASl &
PealLh 438 (2)
SecurlLy
347 (3)
ClLy
lnfrasLrucLure
8923 (48)
CommonwealLh
?ouLh Cames
461 (2)
SporLs
lnfrasLrucLure
4390 (2S)
reparaLlon of
lndlan Leam
678 (4)
ConducL
of Lhe game
2390 (13)
8roadcasLlng
of games
483 (3)
llqote 6.1 - coteqoty wlse boJqet estlmotes (ks. lo ctote)
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1hls esLlmaLe lncreased more Lhan 13-fold
1
Lo 8s. 18332.31 crore , as of CcLober 2010.
AL Lhe Llme of our SLudy 8eporL on
reparedness for CWC 2010 (!uly 2009), Lhe
esLlmaLed expendlLure for Lhe Cames
2
ro[ecL was 8s. 13366 crore , whlch
lncreased Lo 8s. 18332.31 crore by
uecember 2010.
6.2.2 uantum [ump |n budget est|mates
1he lnlLlal budgeL esLlmaLe for hosLlng and conducLlng CWC-2010 pro[ecLed ln Lhe May 2003
bld documenL was [usL 8s. 1200 crore, as summarlsed below:
llqote 6.2 - Aqeocy wlse 8oJqet estlmote (ks. lo ctote)
1oble 6.1 - 8oJqet stlmotes loJlcoteJ lo Moy 200J lOA 8lJ
Aqeocy-wlse ptoflle of boJqet estlmotes ls qlveo below.
3612 (19)
2388 (14)
747 (4) 9672 (32))
182 (1)
828 (4)
483 (3)
331 (2)
96 (1)
GNC1D MnA Cthers Govt. of Maharashtra M|nstry of I&8
DDA M1NL CC MAS
ro[ected Lxpend|ture Sources of I|nances
(In ks. Crore)
CapItaI/ repaIr and
renovatIon expendIture
on stadIa
CIty beautIfIcatIon and
addItIonaI servIces
TotaI TotaI
Rcvcnuc Surplus from conducL
of Gamcs (rcvcnucs of Rs. 840
crorc, offscL by opcraLing
cxpcnscs of Rs. 635 crorc)
Salc of rcsidcnLial flaLs
GranLs
1,050
150
1200 1200
205
477
518
NoLc. US$ figurcs in lOA bid convcrLcd @ Rs. 45/ US$
1hls excludes lnvesLmenLs by oLher agencles
ln lnfrasLrucLure and oLher acLlvlLles -
noLably uelhl MeLro 8all CorporaLlon
(uM8C) and AlrporLs AuLhorlLy of lndla
(AAl)/ uelhl lnLernaLlonal AlrporL LlmlLed
(ulAL).
1
2
wltboot settloq off tbe teveooe qeoetoteJ/ teollzeJ by
Oc.
locloJloq ks. 678 ctote fot ltepototloo of loJloo 1eom
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1hls does noL lnclude Lhe value/ cosL of Lhe
ball-ouL package provlded by uuA Lo Lhe
pro[ecL developer for Lhe resldenLlal
complex of Lhe CWC Cames vlllage.
1he deLalls of varlous pro[ecLs lnlLlaLed by
Lhe respecLlve MlnlsLrles/ueparLmenLs and
Lhelr flnal approval lndlcaLlng Lhe amounL
lnvolved have been shown ln Annexe 6.2.
We could noL aLLempL a caLegory-wlse
analysls of budgeL esLlmaLes from Lhe bld ln
May 2003, due Lo lack of clarlLy on flgures,
especlally wlLh respecL Lo budgeL esLlmaLes
for clLy lnfrasLrucLure.
3
Analysls of Lhe cosL esLlmaLes , as
consldered by or lnLlmaLed Lo Lhe Col,
reveals Lhe followlng lncreaslng Lrend:
1oble 6.2 - coteqoty wlse escolotloo (Ioly 2009- uecembet 2010)
ro[ected Lxpend|ture 2009 2010
(In ks. Crore)
Sports Infrastructure (Venue Deve|opment)
C|ty Infrastructure
Conduct of the Games
reparat|on of Ind|an team
8roadcast|ng
Commonwea|th outh Games
Cthers (|nc|ud|ng secur|ty)
1ota|
3214.00
4330.00
1628.00
678.00
463.00
331.00
682.00
13,S66.00
4390.03
8923.00
2390.48
678.00
864.37
461.48
622.73
18S32.31
3
locloJloq ks. 2800 ctote fot CNc1u ooJ ks. J51 ctote fot Covetomeot of Mobotosbtto
M
a
y

-

0
3
S
e
p

-

0
3
0
2000
4000
6000
8000
10000
12000
14000
11687.2S
10444.48
9S98.72
7907
7862
6S04
43S2
3S66
1834.46
618
297
!
a
n

-

0
4
M
a
y

-

0
4
S
e
p

-

0
4
!
a
n

-

0
3
M
a
y

-

0
3
S
e
p

-

0
3
!
a
n

-

0
6
M
a
y

-

0
6
S
e
p

-

0
6
!
a
n

-

0
7
M
a
y

-

0
7
S
e
p

-

0
7
!
a
n

-

0
8
M
a
y

-

0
8
S
e
p

-

0
8
!
a
n

-

0
9
M
a
y

-

0
9
S
e
p

-

0
9
!
a
n

-

1
0
M
a
y

-

1
0
S
e
p

-

1
0
llqote 6.J - locteosloq tteoJ of cost estlmotes
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
1oble 6.J - cost estlmotes os cooslJeteJ by ot lotlmoteJ
to tbe Col ot Jlffeteot stoqes
Lvent er|od
1ota| Cost Lst|mate
(ks. |n Crore)
2010
Assessment of ICA
8|d Document
Lst|mate to Cab|net
"Updated" b|d document
Lst|mate to Cab|net
Lst|mate to GCM
Lst|mate to CCLA
Lst|mate to Cab|net
Lst|mate to Cab|net
May-03
May -03
Sep-03
uec-03
Apr-07
Aug-07
Mar-08
CcL-08
uec-08
297.00
1199.92
618.00
1834.46
3366.00
4332.00
6304.00
7862.00
7907.00
lndlcaLed ln Lhe CablneL noLe
seeklng permlsslon for lCA Lo
bld for CWC-2010 and for M?AS
Lo lssue varlous guaranLees Lo
CCl.
noL submlLLed Lo Col
ro[ecLed Lo CablneL aL Lhe
Llme of seeklng lLs consenL Lo
enLer lnLo PosL ClLy ConLracL
and underwrlLlng Lhe shorLfall
beLween Lhe revenue and
expendlLure of Lhe CC eLc.
SubmlLLed Lo M?AS ln
SepLember 2004
LsLlmaLes lndlcaLed Lo CablneL
whlle submlLLlng a proposal for
blddlng for xvll Aslan Cames -
2014 aL nC8 uelhl.
LsLlmaLes lndlcaLed Lo Lhe CoM
whlle belng apprlsed of Lhe
sLaLus of fundlng Lo varlous
agencles.
1hls was lndlcaLed whlle
presenLlng Lhe expendlLure
budgeL of M?AS for up-
gradaLlon/ renovaLlon of
compeLlLlon venue/ Lralnlng
venues aL uelhl unlverslLy, !Ml
and uS 8k uram for approval.
1hls was lndlcaLed whlle
obLalnlng approval of Lhe
CablneL for addlLlonal funds for
Lhe CC for C?C-2008, une.
1he amounL was reporLed whlle
Lhe CablneL was apprlsed of Lhe
preparedness for hosLlng CWC-
2010.
Lvent er|od
1ota| Cost Lst|mate
(ks. |n Crore)
2010
Lst|mate to Cab|net
Lst|mate to Cab|net
Lst|mate to GCM
May-09
Mar-10
Sep-10
9398.72
10444.48
11687.23
1hls was lndlcaLed wlLh Lhe
CablneL noLe aL Lhe Llme of
obLalnlng approval for revlsed
esLlmaLe of SAl sLadla,
recreaLlng of sporLs faclllLles ln
uelhl eLc.
1hls was reporLed Lo Lhe
CablneL whlle obLalnlng
approval for budgeL of CC for
overlays.
1hls was lndlcaLed durlng
dellberaLlons by Lhe CoM ln
SepLember 2010 whlle
conslderlng Lhe proposal for
addlLlonal expendlLure on
openlng and closlng
ceremonles.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
ln parLlcular, Lhere were seven upward
revlslons ln budgeL esLlmaLes from Aprll
2007 Lo SepLember 2010 aL very shorL
lnLervals, represenLlng a Lhree-fold lncrease
(from 8s. 3366 crore Lo 8s. 11,687.23 crore).
lL assumed LhaL Lhe exlsLlng sporLs

venues / faclllLles (largely consLrucLed
for Lhe 1982 Aslan Cames) could be
upgraded/ renovaLed/refurblshed aL
relaLlvely mlnlmal cosLs (8s. 1030 crore
for all venues - 8s. 946 crore for new
faclllLles and 8s. 104 crore for repalrs/
renovaLlon). 1hls was a compleLely
unreallsLlc assumpLlon, whlch falled Lo
facLor ln Lhe drasLlc changes ln sporLlng
and Lechnologlcal speclflcaLlons (ln llne
wlLh Lhe laLesL requlremenLs of Lhe
lnLernaLlonal sporLlng federaLlons) and
consequenL lncrease ln cosLs. In rea||ty,
most of the venues were |arge|y rebu||t,
rather than renovated.
A meagre provlslon of 8s. 73 crore for
clLy beauLlflcaLlon (wlLh an addlLlonal 8s.
73 crore for addlLlonal healLh, flre,
securlLy, Lrafflc, and cusLoms/
lmmlgraLlon servlces) was made ln Lhe
bld documenL. 1he 1982 Aslan Cames
Lven at th|s |ate stage, GoI was unab|e to
est|mate the cost of host|ng the Games
w|th reasonab|e accuracy. 1h|s was the
outcome of a p|ecemea| approach
adopted for cons|derat|on ]approva| of
|nd|v|dua| cost e|ements and |ack of
p|ann|ng |n the |n|t|a| stages.
6.2.3 L|m|ted Scope of Cr|g|na| 8udget
Lst|mate (May 2003 8|d)
1he budgeL envlsaged ln Lhe May 2003 bld
documenL, whlch was prepared by Lhe
CharLered AccounLanL of lCA (AS Sharma &
Co.) and was noL veLLed or approved by Lhe
Col, was exLremely llmlLed ln scope:
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
represenLed a landmark for uelhl ln
Lerms of upgradaLlon of roads, brldges,
flyovers and oLher lnfrasLrucLure. CWC-
2010 was also vlewed subsequenLly as
an opporLunlLy for slmllar upgradaLlon.
unforLunaLely, Lhls was noL
approprlaLely planned and provlded for
rlghL aL Lhe ouLseL. 1he lnfrasLrucLure
pro[ecLs were added and approved ln a
plece meal and ad hoc fashlon (mosLly
from 2007-08 onwards). very ofLen,
CnC1u, nuMC and MCu used Lhls
opporLunlLy Lo club several exlsLlng
pro[ecLs, and obLaln addlLlonal fundlng
for compleLlng Lhese pro[ecLs ln Llme for
Lhe Cames. We observed LhaL even Lhen
Llmely compleLlon could noL be achleved
ln many cases.
1he orlglnal budgeL dld noL have any
provlslons for broadcasLlng and medla
and Lelecom lnfrasLrucLure, and a
meagre provlslon for securlLy
lnfrasLrucLure. ulLlmaLely, boLh rasar
8haraLl and M1nL used Lhls opporLunlLy
Lo obLaln funds for upgradaLlon of Lhelr
lnfrasLrucLure (Pu1v capablllLy for
rasar 8haraLl, and hlgh speed l/ MLS
Lelecom lnfrasLrucLure for M1nL).
Powever we observed, boLh agencles
ouLsourced Lhese acLlvlLles compleLely
(wlLhouL relylng on, or upgradlng ln-
house capaclLy), leadlng Lo creaLlon of
no/ lnslgnlflcanL legacy lnfrasLrucLure
(physlcal and human). 1he securlLy
lnfrasLrucLure also cosL many Llmes Lhe
orlglnal esLlmaLe, and lLs legacy value ls
agaln uncerLaln as of daLe.
6.2.4 Cther reasons for Cost] 8udget

Increases
1he budgeL dld noL facLor ln Lhe cosL of
preparlng lndlan Leams for Lhe Cames
(Lhrough focused Lralnlng and supporL Lo
ldenLlfled core" probables ln dlfferenL
dlsclpllnes), for whlch 8s. 678 crore was
allocaLed only ln lebruary 2008.
ln addlLlon Lo Lhe lncreased scope of
acLlvlLles, Lhe oLher ma[or reason for
lncreased cosLs/ budgeL esLlmaLes was delay
aL all sLages - plannlng, Lenderlng and
award, and execuLlon/ compleLlon - ln
respecL of mosL acLlvlLles. 1hese delays,
wlLh consequenL bunchlng of acLlvlLles
Lowards Cames 1lme, led Lo subsLanLlal
lncreases ln cosL, whlch could have been
avolded Lhrough Llmely acLlon.
As polnLed ouL elsewhere, Lhe seven-year
Llme wlndow from award of Lhe Cames Lo
lLs hosLlng was noL frulLfully uLlllsed, and
mosL acLlvlLles were underLaken ln Lhe lasL
Lwo years or so. 1hese delays led Lo
lncreased cosLs, and also faclllLaLed shorL-
clrculLlng of procuremenL and relaLed
procedures on grounds of urgency, and
consequenL compromlse on economy.
lurLher, we found several lnsLances of lack
of flnanclal prudence and proprleLy across
Lhe range of lmplemenLlng agencles, whlch
lnflaLed cosLs furLher and resulLed ln
wasLage of publlc funds. 1hese are
descrlbed ln deLall ln Lhe relevanL area-
speclflc chapLers.
6.3 I|nanc|a| Management
by GoI
6.3.1 Approva| rocess
1he mechanlsms ln Lhe Col for approval of

plan and non-plan expendlLure are as
follows:
1he CommlLLee on non-lan LxpendlLure
(CnL), wlLh SecreLary, LxpendlLure as
Chalrman, serves as an appralsal forum for
4
Lhe followlng Lypes of cases where
All non-plan proposals lnvolvlng
expendlLure of over 8s. 73 crore
recurrlng or non-recurrlng, on a new
servlce or for expanslon of exlsLlng
servlces.
Any oLher non-plan proposal whlch a
ueparLmenL may llke Lo be consldered ln
Lhe CnL.
S
As regards lan schemes :
Schemes cosLlng beyond 8s. 100 crore
buL less Lhan 8s. 300 crore are Lo be
consldered by Lhe LxpendlLure llnance
6
CommlLLee (LlC) (chalred by Lhe
SecreLary of Lhe admlnlsLraLlve
deparLmenL).
lan schemes/ pro[ecLs lnvolvlng
expendlLure of 8s. 300 crore and above
are Lo be consldered by Lhe LxpendlLure
llnance CommlLLee where lL does lf lL
does noL glve reLurns, or by Lhe ubllc
lnvesLmenL 8oard where lL glves reLurns.
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
Cases where Lhe expendlLure lnvolves an

lnvesLmenL of 8s. 300 crore or more
requlre Lhe approval of Lhe CablneL also.
We noLed LhaL Lhe budgeL proposals were
mooLed by Lhe respecLlve mlnlsLrles and
approval of Lhe CablneL was obLalned,
wherever necessary. lurLher, ln respecL of
Col,
All granLs were under Lhe lan head, .
lunds were released ln lnsLalmenLs
sub[ecL Lo sLandard Lerms and
condlLlons and also sub[ecL Lo uLlllsaLlon
CerLlflcaLes.
ln Lhe case of rasar 8haraLl, funds were
released as 30 per cenL granL and 30 per
cenL loan (ln vlew of Lhe uncerLalnLy of
revenues), wlLh converslon lnLo granL-ln-
ald Lo be consldered laLer, lf found
necessary.
1he only non-plan componenL was ln
respecL of Lhe loan for Lhe CC's
operaLlonal budgeL (lnLended Lo be
repald ouL of CC's revenues).
6.3.2 Summary of Approva|s
A summary of lLem-wlse proposals rouLed
Lhrough LlC/ CnL/ CablneL ln respecL of
dlfferenL MlnlsLrles of Col ls glven below,
deLalls are glven ln Annexe 6.1:
4
S
6
llmlts ote effectlve ftom Aptll 2010
llmlts ote effectlve ftom Aptll 2010
cbolteJ by tbe 5ectetoty of tbe oJmlolsttotlve
Jepottmeot olooq wltb 5ectetoty (xpeoJltote) ooJ
5ectetoty (lloooloq commlssloo)
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
6.3.3 De|ayed grant of approva|s
ln addlLlon Lo oLher delays, we found subsLanLlal delays ln Lhe process of approvals/ sancLlons.
A llsL of approvals, whlch Look 4 monLhs or more (as ascerLalned from Lhe records of Lhe
MlnlsLry of llnance) ls glven below:
7
uoes oot locloJe ptoposols wblcb wete sooctlooeJ/ opptoveJ bot oot otlllseJ (e.q. opptovol of ks. 200 ctote fot lotelllqeot
1tofflc Moooqemeot 5ystem (l1M5))
M|n|stry Name of the ro[ect] roposa|
Approved
amount
MAS
MoUD
MI8
MnA
MonIW
CperaLlonal 8udgeL of CC
Cverlays for CC
rocuremenL of 1S8 and SporLs LqulpmenL for venues
venue uevelopmenL (SAl SLadla)
venue uevelopmenL (uu, !Ml, and uS, 8k uram)
venue uevelopmenL (Al1A)
Scorlng and relaLed equlpmenL for ur. karnl Slngh ShooLlng 8ange
venue uevelopmenL (C8l kadarpur 8ange)
Scheme for reparaLlon of lndlan 1eam for CWC-2010
M1nL (1elecom Servlce rovlder for CWC-2010
ConsLrucLlon of Cames vlllage and SporLs venues by uuA
PosL 8roadcasLlng, lnLernaLlonal 8roadcasLlng CenLre, and Maln
ress CenLre
lnLegraLed SecurlLy SysLem and relaLed equlpmenL
SporLs ln[ury CenLre (Safdar[ung PosplLal)
1813.42
687.00
87.23
2473.00
330.71
63.63
30.13
28.30
678.00
182.00
827.83
482.37
373.00
70.72
1oble 6.4 - 5ommoty of ApptoveJ cwC-2010 ltoposols/ stlmotes
7
(lo tespect of Col)
M|n|stry
Department
roposa|
Date of |n|t|a|
proposa| to MCI
Date of
approva|
1|me Gap
(Months)
outh Affa|rs
& Sports
venue uevelopmenL (SAl
SLadla)
CperaLlonal 8udgeL
of CC
Cverlays (for CC)
Scheme for reparaLlon of
lndlan Leam for CWC-2010
venue uevelopmenL (uu,
!Ml and uS,
8k uram)
28.08.2006
23.01.2009
30.11.2003
16.06.2009
17.11.2009
12.02.2008
19.12.2007
11.02.2009-!Ml
23.02.2009-uu
13.03.2007
08.03.2009
13.03.2007
03.11.2009
19.03.2010
12.06.2008
27.03.2008
08.10.2009
7
3
13
3
4
4
3
8
7
1oble 6.5 - ueloys lo boJqet opptovols
0
e
r
e

|
s
s
a
e
s
Whlle we noLe LhaL careful scruLlny of
proposals ls requlred Lo ensure due
dlllgence before approvals and commlLmenL
of Col funds, for a Llme-senslLlve pro[ecL llke
CWC-2010 (where conslderable delays had
already Laken place aL Lhe lnlLlal sLages,
reduclng Lhe Llme avallable for plannlng and
lmplemenLaLlon), processlng and approvals
aL varlous levels should have demonsLraLed
a greaLer sense of urgency Lhan Lhey
acLually dld.
ln parLlcular, we noLed Lhe dlscomforL and
delay of Lhe LlC ln clearlng Lhe budgeL
proposals of Lhe CC due Lo lack of compleLe
undersLandlng of bld documenLs, CCl
proLocols, PCC and relaLed documenLs by
M?AS/Mol. Lven as laLe as !anuary 2010,
whlle dlscusslng Lhe proposal for Cverlays
SecreLary, M?AS acknowledged LhaL roles of
varlous agencles (venue owners and CC)
were noL clearly demarcaLed. 1hls lack of
clarlLy had an adverse lmpacL on Lhe
flnanclng of Lhe pro[ecLs.
CC submlLLed lLs flrsL budgeL proposal Lo
M?AS ln november 2003, buL Lhls was
approved only ln Aprll 2007. CC's revlsed
budgeL was submlLLed ln !uly 2008, buL was
senL Lo Lhe MlnlsLry of llnance only ln !une
2009 and flnally approved ln november
2009. We noLed LhaL Lhe approval of Lhe CC
budgeL goL llnked wlLh Lhe dlfferences
beLween M?AS and CC over Lhe exLenL of
CovernmenLal conLrol. Powever, Lhese
dlfferences should noL have been allowed Lo
delay scruLlny and approval of budgeLs.
6.4 I|nanc|a| Management |n
GNC1D
An agency-wlse proflle of approvals/
sancLlons by CnC1u (lncludlng approvals for
MCu, nuMC and oLher bodles) ls glven ln
1able 6.6.
M|n|stry
Department
roposa|
Date of |n|t|a|
proposa| to MCI
Date of
approva|
1|me Gap
(Months)
outh Affa|rs
& Sports
M1nL
venue uevelopmenL (Al1A)
venue uevelopmenL (C8l
kadarpur 8ange)
21.10.2009
02.11.2006
27.03.2009
10.02.2010
22.09.2009
08.10.2009
7
33
4
Urban
Deve|opment
Informat|on &
8roadcast|ng
ConsLrucLlon of Cames
vlllage and SporLs venues
by uuA
PosL 8roadcasLlng,
lnLernaLlonal 8roadcasLlng
CenLre, & Maln ress
CenLre
12.07.2006
18.12.2007
13.10.2009
03.10.2008
39
10
0
e
r
e

|
s
s
a
e
s
S
e
c
L
l
o
n

-

8
afLer seLLlemenL of bllls/ recelpL of uCs
wlLh deLalled SLaLemenLs of LxpendlLure
(SCLs).
Lven ln respecL of deparLmenLally
execuLed pro[ecLs ln CnC1u, flnal
paymenLs are yeL Lo be made.
6.S Cutstand|ng L|ab|||t|es

lL ls a maLLer of concern LhaL Lhe flnal bllls
for mosL of Lhe pro[ecLs (Crganlslng
CommlLLee, venue developmenL, clLy
lnfrasLrucLure and oLher pro[ecLs) are yeL Lo
be seLLled by Lhe lmplemenLlng agencles,
even afLer several monLhs of concluslon of
Lhe Cames.
1he CC ls scheduled Lo cease exlsLence
from 31 March 2011. AccounLs upLo
2009-10 only have been flnallsed.
8eleases Lo agencles llke SAl, M1nL,
rasar 8haraLl, LClL eLc. are LreaLed as
expendlLure ln Lhe books of Col.
Powever, Lhe flnal cosL wlll be known
Agency Sanct|oned Amount

WD
D1C
ower Department
NDMC
MCD
DI8
DnS
Art & Cu|ture Deptt.
I1
Lnv|ronment & Iorest
DGS
Grand 1ota|
3,436
1,173
1,100
1,016
342
269
46
28
28
7
6
9,672*
1oble 6.6 - Aqeocy-wlse ptoflle of Apptovols fot CNc1u
(In ks. Crore)
*1bls locloJes fooJloq ftom Col - (o) compooeots of INNukM. ks. 761 ctote ooJ (b) AJJltloool ceottol Asslstooce
fot cwC-teloteJ ptojects. ks 2800 ctote.
A caLegory-wlse proflle of approvals/ sancLlons ls glven ln Annexe 6.2.
Unt|| f|na| payments are made, the fu||
cost of organ|z|ng and stag|ng CWG-2010
to the pub||c exchequer w||| not be
known. 1h|s w||| be ver|f|ed] scrut|n|zed
|n future aud|ts.
C
n
A
1
L
k
Interna| Contro|s and
Dec|s|on Mak|ng w|th|n the CC
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8y 2009, it hod become obundont/y c/eor thot the conduct of the xlx cw6 wou/d be toto//y
funded by the 6overnment. ven the eor/ier c/oim of the Oc thot it wou/d be o revenue
neutro/ exercise, /et o/one be revenue surp/us, hod been debunked. 5ince funds were
f/owinq from 6overnment coffers it wos essentio/ for the Oc to fo//ow procedures /oid
down by 6overnment for such expenditure. 1he Oc hod enouqh experienced 6overnment
officers to ensure the some. Neverthe/ess, we found thot the interno/ contro/ environment
ond decision mokinq structures within the Oc were hiqh/y inodequote.
1he processinq of certoin sensitive controcts/ coses wos o//ocoted in on orbitrory ond
od hoc monner to certoin officio/s who hod no /inkoqes with the concerned lunctiono/
4reo, such oction di/uted the process of due di/iqence ond scrutiny.
1he stote of documentotion in the Oc {especio//y with reqord to controctinq for qoods
ond services) wos so inodequote thot we ore unob/e to derive ossuronce os to either the
outhenticity or the comp/eteness of records. ln porticu/or, documentotion of the
minutes of the meetinqs of the xecutive Monoqement committee {Mc) is such thot
there is o possibi/ity of these minutes beinq prepored os on ofterthouqht to fi// in qops
in opprovo/.
we found numerous instonces of controcts not beinq subjected to the required toxotion
ond /eqo/ odvice/ vettinq, even where offered, such odvice ond vettinq wos deficient
ond foi/ed to protect the interests of the Oc. Oc's hond/inq of tox-re/oted issues wos
extreme/y poor, in 19 controcts, Oc irrequ/or/y oqreed to beor tox /iobi/ity on beho/f of
the vendor. 1he finoncio/ odvice function wos, in effect, dispensed with from November
2008. 1he interno/ oudit ond viqi/once set-ups were o/so rendered ineffective.
controct monoqement by the Oc wos irrequ/or ond deficient:
we ore not certoin obout the toto/ number of controcts ond work orders oworded by
the Oc. 1he stote of controct documentotion is such thot we ore not sure of the entire
sequence of events /eodinq to oword of controcts. we ore o/so unob/e to oscertoin
comp/ete controct-wise poyments ond outstondinq /iobi/ities for eoch controct.
1here wos ovoidob/e bunchinq of hiqh vo/ue controcts in 2010, porticu/or/y in the
second ond third quorters. 1he orqument of urqency wos used to obviote the requ/or
process of tenderinq for oword of controcts. 1his serious/y compromised tronsporency
ond economy.
1here were numerous instonces of sinq/e tenderinq, oword on "nominotion bosis",
oword of controcts to ine/iqib/e vendors, inconsistent use of restrictive Pre-
7.1 Structure]Act|v|t|es of CC
8roadly, Lhe operaLlonal sLrucLure of CC was as follows:
ChapLer 7 - lnLernal ConLrols and ueclslon Maklng wlLhln Lhe CC
uo/ificotion {P) conditions to /imit competition to fovour porticu/or vendors,
inodequote time for biddinq, conce//otion ond re-tenderinq of controcts, ond
inexp/icob/e de/oys in controct fino/isotion.
1he Oc-lO4 re/otionship wos b/urred. 1his foci/itoted qront of irrequ/or benefits to lO4 ot
the expense of the Oc/ 6ol throuqh fundinq of huqe de/eqotions for the 8eijinq O/ympics
2008 5tudy Observer Proqromme ond the 2008 4NOc meetinq, qettinq the lO4 8howon
fu//y furnished ond renovoted ot Oc's cost, ond other odditiono/ irrequ/or poyments for
lO4's "property riqhts" over the lndion continqent ond qront for troininq ond preporinq
lndion oth/etes {which wos octuo//y done by the 6ol).
1he Oc hired o mu/tip/icity of externo/ consu/tonts ond odvisors. we found numerous
deficiencies in the procedures for oppointment ond monoqement of consu/toncy
controcts. Most consu/tonts were oppointed on nominotion bosis ond did not hove formo/
controcts, nor were consu/toncy poyments /inked to de/iverob/es. ln mony coses, detoi/ed
scope of work wos o/so not drown up.
uetoi/ed findinqs ore presented in the re/evont oreo specific chopters.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
llqote 7.1 - Otqoolsotloool 5ttoctote of Oc
Lxecut|ve
8oard (L8)
Cha|rman
CC
Lxecut|ve
Management
Comm|ttee
CLC
CCC
(on |eave from
August 2009
onwards)
D|rector
Genera|
Sp|. DGs
Iunct|ona| Area
(headed by
IDG]ADG]DDG)
Iunct|ona| Area
(headed by
IDG]ADG]DDG)
Iunct|ona| Area
(headed by
IDG]ADG]DDG)
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1oble 7.1 - looctloool Ateos of Oc
llqote 7.2 - Actlvltles of Oc
CC's acLlvlLles can be dlvlded lnLo Lhe followlng broad caLegorles, correspondlng Lo Lhe
34 luncLlonal Areas (lAs) llsLed ln Lhe Ceneral CrganlsaLlon lan (CC) prepared by Lhe
CC ln AugusL 2007.
Areas of Act|v|t|es of CC
Act|v|t|es of
the CC
SporLs
1echnology
CaLerlng
Workforce
and
volunLeers
Manage-
menL and
Admlnls-
LraLlon
8evenue
CeneraLlon
CLher
Servlces
Cames
8randlng
Cames
lannlng
and venue
uevelop-
menL
Ceremonles
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
Arranglng and provldlng

accommodaLlon Lo aLhleLes and
Leam offlclals aL Lhe Cames
vlllage as per PCC and also
plannlng for legacy whlle
developlng Lhe Cames vlllage, an
rovldlng a safe, secure,
comforLable and welcomlng
envlronmenL aL Lhe Cames
vlllage.
Games V|||age
Deve|opment and
Cperat|ons
Games
|ann|ng and
Venue
Deve|opment
1
1he scope of work ln each luncLlonal Area ls dellneaLed below:
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
2
3
4
S
7
6
Cater|ng
Ceremon|es
Games
8rand|ng
rovldlng venues wlLh faclllLles of

Lhe hlghesL lnLernaLlonal sporLs
sLandards and caLerlng Lo Lhe
needs of varlous sLakeholders
wlLnesslng Lhe evenLs aL Cames
1lme, and
lnLegraLlng all Lhe luncLlonal
Areas ln Lhe plannlng process by
communlcaLlng Lhe roles and
obllgaLlons expecLed from Lhem
durlng Cames 1lme.
ueveloplng a deLalled legacy plan
for Lhe Cames.
rovldlng food and beverage
servlces Lo all consLlLuenL groups
aL all compeLlLlon and non
compeLlLlon venues and Lhe
Cames vlllage, and
MeeLlng Lhe speclal dleLary
requlremenLs of lLs cusLomers ln
Lhe besL posslble manner.
ConducLlng successfully Lhe
openlng and closlng ceremonles
LhaL are unparalleled and
unmaLched by prevlous CWCs,
and
romoLlng Lhe splrlL of Lhe CWC
Lhough a varleLy of culLural
evenLs.
Lnhanclng vlslblllLy and
promoLlng popularlLy of Lhe CWC
amongsL local communlLles ln all
CommonwealLh counLrles and ln
dlfferenL parLs of lndla.
Lnsurlng conslsLency ln Lhe lmage
and look for Lhe Cames , and
rovldlng deslgn asslsLance Lo
varlous funcLlons.
Legacy
Cater|ng
Ceremon|es
Image and Look
ueen's 8aton ke|ay
Venue
Deve|opment
and Cperat|ons
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
8
9
10
11
1echno|ogy
Sports
romoLlng a poslLlve lmage of

lndla by worklng closely wlLh Lhe
domesLlc and lnLernaLlonal medla
and ensurlng Lhelr supporL and
lnvolvemenL ln Lhe Cames , and
CoordlnaLlng Lhe medla acLlvlLles
aL Lhe Maln ress CenLre, venue
Medla CenLres (vMCs) and Lhe
Cames vlllage.
ueveloplng an effecLlve publlclLy
and communlcaLlons program Lo
poslLlon Lhe evenL as a
presLlglous, exclLlng 'musL aLLend'
for poLenLlal domesLlc and
overseas aLLendees, and
CreaLlng and malnLalnlng hlgh
levels of awareness abouL Lhe
sporLs program, Lhe Cames
vlllage and oLher slLes.
rovldlng a robusL and LesLed
Lechnology plaLform for Lhe
sLaglng and conducL of Lhe
Cames and dellvery of all Llmlng,
scorlng, and on-venue resulLs
sysLems and downsLream
appllcaLlons, and
Cfferlng a range of appllcaLlons
and soluLlons Lo all luncLlonal
Areas of Lhe CC for games
plannlng and execuLlon wlLh a
focus on meeLlng speclflc
requlremenLs wlLhln budgeL.
lannlng for all sporLs ln Lhe areas
of sporL enLrles, sporL resulLs,
scorlng and Llmlng and Lhe
developmenL of Lhe compeLlLlon
schedule,
rovldlng pollcy and operaLlonal
supporL for all sporLs lncludlng
regulaLlons for sporLs, provlslon
of equlpmenL, Lralnlng faclllLles
eLc, and
ress
Cperat|ons
Commun|cat|ons
1echno|ogy
Sports
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
Workforce]
Vo|unteers
Cther
Serv|ces
lannlng and lmplemenLlng Lhe

presenLaLlon of sporLs medal
ceremonles.
CreaLlng an effecLlve and hlgh
quallLy healLh care program for
aLhleLes and Lhe Cames lamlly,
and
Lnsurlng prompL and efflclenL
medlcal care lncludlng Lhe
avallablllLy of flrsL-ald and oLher
emergency medlcal servlces for
specLaLors aL compeLlLlon venues.
Lnsurlng compllance wlLh Lhe
proLocol as deflned by Lhe CCl
across all funcLlons and evenLs.
ALLracLlng and recrulLlng
approprlaLe and adequaLe
personnel as per Lhe
requlremenLs speclfled by varlous
funcLlons,
Lnsurlng LhaL Lhe workforce
members are asslgned and
lnformed abouL Lhelr respecLlve
roles and responslblllLles,
uellverlng an effecLlve volunLeer
program for Lhe Cames.
rovldlng accommodaLlon Lo
sLakeholder groups, vls, CCAs,
lnLernaLlonal lederaLlons eLc.
ouLslde Lhe Cames vlllage.
rovldlng accredlLaLlon Lo ellglble
and auLhorlsed lndlvlduals as per
Lhe CCl guldellnes, and
LlmlLlng parLlclpanLs' access Lo
only needed areas.
ConLrolllng cleanlng and wasLe
managemenL servlces for all
consLlLuenLs groups aL venues
and Lhe Cames vlllage, and
12
13
14
1S
16
17
Med|ca| and
Dop|ng Contro|
rotoco|
Workforce
Accommodat|on
Accred|tat|on
C|ean|ng and
Waste Management
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
18
19
20
21
22
ConLrlbuLlng Lo Lhe achlevemenL

of envlronmenLal and
susLalnablllLy ob[ecLlves Lhrough
an lnLegraLed WasLe
ManagemenL lan.
Worklng ln collaboraLlon wlLh Lhe
rocuremenL luncLlonal Area Lo
sLore goods and maLerlal as and
when Lhey are dellvered, and
laclllLaLlng LransporLaLlon and
dellvery of goods and maLerlals ln
Lhe venues and Lhe Cames vlllage
from Lhe cenLral warehouse.
rovldlng a coheslve framework
for Cames securlLy Lo all Cames
parLlclpanLs and vlslLors, and
CoordlnaLlng lnlLlaLlves wlLh
relevanL securlLy agencles Lo
dellver effecLlve, professlonal,
unobLruslve, frlendly and helpful
securlLy for all Cames
parLlclpanLs and vlslLors.
Lnsurlng a safe and en[oyable
CWC experlence for all specLaLors
by provldlng lnformaLlon
asslsLance and supporL servlces.
AdopLlng envlronmenLal besL
pracLlces and mlnlmlslng Lhe
negaLlve lmpacL of Lhe Cames on
Lhe envlronmenL.
rovldlng efflclenL, puncLual and
safe LransporL servlces Lo aLhleLes
and Leam offlclals eLc,
CoordlnaLlng wlLh Lhe 1ransporL
ueparLmenL (CnC1u), u1C and
uM8C Lo provlde adequaLe
LransporL arrangemenLs, and
ueveloplng a Lrafflc managemenL
plan wlLh a vlew Lo bulldlng
capaclLles Lo meeL deflned
servlce levels.
Log|st|cs
Secur|ty
Spectator
Serv|ces
Susta|nab|||ty
and Lnv|ronment
1ransportat|on
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
Management
and
Adm|n|strat|on
lannlng and procurlng goods

and servlces as per deflned
Llmellnes, locaLlons and
quanLlLles, and
ueveloplng plans for reLurn and
dlsposal of surplus maLerlals ln
Lhe posL-Cames phase.
Managlng lnformaLlon flow
beLween CovernmenL Agencles
and Lhe CC, and
Lnsure compllance wlLh Lhe
clauses of Lhe PosL ClLy ConLracL
wlLh respecL Lo Lhe vlews of Lhe
CCl Co-ordlnaLlon commlsslon.
ueveloplng Lhe general Cames
8udgeL and relevanL Annual
8udgeLs,
MonlLorlng revenue and expendl-
Lure vls--vls Lhe budgeL, and
Lnsurlng economy measures and
clearlng paymenLs Lo vendors
afLer due dlllgence.
roLecLlng Lhe lnLeresLs of Lhe CC
ln negoLlaLlon and preparaLlon of
all agreemenLs, and
rovldlng advlce and asslsLance
on all legal maLLers Lo Lhe CC and
varlous luncLlonal Areas.
rovldlng admlnlsLraLlve supporL
servlces (LransporL, workforce, l1
eLc) Lo Lhe CC for ensurlng Lhe
smooLh funcLlonlng of varlous
luncLlonal Areas, and
Lnsurlng expanslon of offlce as
per operaLlonal requlremenLs.
ueveloplng a rlsk managemenL
framework for Lhe CC, and
Asslgnlng responslblllLles and
deflnlng Llmellnes for
developmenL of mlLlgaLlon plans
for Lhe key rlsks.
23
24
2S
26
27
28
rocurement
Coord|nat|on and
Government ke|at|ons
I|nance and
Accounts
Lega|
Cff|ce
Adm|n|strat|on
k|sk
Management
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
kevenue
Generat|on
LsLabllshlng and malnLalnlng

relaLlons wlLh Lhe CCl and CCAs
and provlde Llmely
communlcaLlon for Lhe efflclenL
conducL of Lhe Cames, and
Lnsurlng provlslon of all requlred
servlces lncludlng accredlLaLlon,
accommodaLlon, LransporL eLc Lo
CCl/CCA aLLendees.
Worklng closely wlLh Lhe
sponsorshlp agenL Lo achleve Lhe
budgeLed sponsorshlp revenues
(Cash and value ln klnd), and
MonlLorlng provlslon of agreed
supporL servlces Lo sponsors aL
Lhe venues wlLh respecL Lo
hosplLallLy, venue slgnage,
recognlLlon, LlckeLlng,
accredlLaLlon, accommodaLlon
eLc.
laclllLaLlng Lhe 1v rlghLs sales ln
lndla and overseas Lo generaLe
maxlmum posslble revenue, and
Cverseelng and monlLorlng Lhe
Lenderlng and negoLlaLlons
process conducLed by Lhe
broadcasLlng rlghLs sales agenLs.
rovldlng a sLrong plaLform for
Lhe sale of 1v, radlo and oLher
broadcasL relaLed rlghLs, and
CoordlnaLlng Lhe acLlvlLles of
broadcasLers aL Lhe lnLernaLlonal
8roadcasLlng CenLre, vMCs and
Lhe Cames vlllage.
ueveloplng a LlckeLlng sLraLegy
for Lhe sale and dlsLrlbuLlon of
LlckeLs, and
Managlng Lhe dlsLrlbuLlon and
sales of LlckeLs dlrecLly wlLh key
sLakeholder groups lncludlng
CCAs, lls, sporLlng bodles, Lour
operaLors and sponsors.
29
30
31
32
33
CGA ke|at|ons
Sponsorsh|p
1V k|ghts
8roadcast|ng
1|cket|ng
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Act|v|ty
Group
S No
Name of the
Iunct|ona| Area
Scope of Work
34

ldenLlfylng Lhe producL range Lo

be covered under Lhe
Merchandlslng and Llcenslng
programme, and
ldenLlfylng, selecLlng and
conLracLlng wlLh Lhe commerclal
parLner for Lhe producLlon and
dlsLrlbuLlon of merchandlse.
Merchand|s|ng
& L|cens|ng
LxpendlLure (AlL), supporLed by
concurrenL flnanclal advlce and
examlnaLlon,
Comprehenslve procedures for
procuremenL of goods and servlces,
whlch promoLe compeLlLlon,
Lransparency and economy,
rocedures for verlflcaLlon and
processlng of paymenLs, and preparaLlon
of flnanclal sLaLemenLs,
rofesslonal scruLlny (from Lhe legal,
LaxaLlon and oLher perspecLlves) of drafL
conLracLs and oLher legal documenLs and
oLher arrangemenLs for ensurlng
compllance wlLh appllcable legal and
sLaLuLory requlremenLs, and
CverslghL arrangemenLs, lncludlng
effecLlve vlgllance mechanlsms, and
exLernal and lnLernal audlL
arrangemenLs.
We found LhaL Lhe lnLernal conLrol
framework wlLhln CC was lnadequaLe and
lneffecLlve, as descrlbed below.
7.2 Interna| Contro|

Lnv|ronment
7.2.1 Cverv|ew
lnLernal conLrols are acLlons Laken by

managemenL Lo provlde reasonable
assurance LhaL Lhe organlsaLlon's rlsks have
been managed, and LhaL Lhe organlsaLlon's
goals and ob[ecLlves wlll be achleved
efflclenLly and economlcally.
ln Lhe case of Lhe CC, lL was crlLlcal Lo puL ln
place a robusL and adequaLe lnLernal
conLrol framework, slnce Lhe CC was noL
esLabllshed elLher as a CovernmenL
ueparLmenL/ enLlLy or a Su (whlch would
have auLomaLlcally been requlred Lo comply
wlLh exlsLlng lnLernal conLrol and
governance frameworks). Such an lnLernal
conLrol framework would have requlred, aL
Lhe mlnlmum, Lhe followlng:
Clear dellneaLlon of roles and
responslblllLles (wlLh commensuraLe
delegaLlon of powers),
rescrlbed procedures for processlng,
approval and documenLaLlon of declslon-
maklng aL varlous levels,
ApproprlaLe budgeLary conLrols and
flnanclal sancLlons/ AuLhorlsaLlon for
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
LhaL lL was done Lo faclllLaLe approval of
conLracLs/ cases wlLhouL Lhe requlred due
dlllgence and scruLlny of Lhe prescrlbed
auLhorlLles. lL also ensured LhaL Lhe Lrall of
declslon maklng and accounLablllLy was
dlfflculL Lo esLabllsh. Many of Lhese
conLracLs/ cases also lnvolved lmproprleLy,
lrregularlLy and lack of Lransparency, whlch
have been dlscussed ln Lhe area-speclflc
secLlons of Lhls reporL.
7.2.2 Irregu|ar d|str|but|on of work
re|at|ng to sens|t|ve contracts
We found LhaL Lhe processlng of cerLaln
senslLlve conLracLs/ cases were enLrusLed ln
an arblLrary and ad hoc manner Lo cerLaln
offlclals closely assoclaLed wlLh Shrl kalmadl
and Shrl 8hanoL. Such offlclals had no role/
llnkages wlLh Lhe concerned luncLlonal Area
Lo whlch Lhese acLlvlLles perLalned. Such
acLlon leads Lo Lhe lnescapable concluslon
erson Cff|c|a| os|t|on
Contracts] Cases w|th wh|ch
|rregu|ar|y assoc|ated
C88 Launch Ceremony, London

C88 Launch Ceremony, London
8el[lng Clymplcs 2008 SLudy
Cbserver Croup
AccommodaLlon for 8el[lng
Clymplcs 2008 SLudy Cbserver
Croup
?ouLh Cames C88 (Poardlngs),
AnCC 8el[lng MeeLlng, Ceremonles
(booklng of accommodaLlon and
selecLlon of WlzcrafL)
AccommodaLlon for lnLernaLlonal
consulLanLs, SporLs resenLaLlon
(selecLlon of C8L)
!uC (8evenue MarkeLlng
and Chalrman's
SecreLarlaL)
uuC (1echnology
MarkeLlng)
C/ ulrecLor/ uuC
(Chalrman's SecreLarlaL)
CC member (noL
employee)
Pead of Co-ordlnaLlon and
CovernmenL 8elaLlons
luncLlonal Area
uuC (SC's SecreLarlaL)
1S Darbar|
San[ay Moh|ndroo
Sangeeta 8adhwar
nar|sh Sharma
kk Sachet|
Ak kesar|
1oble 7.2 - ltteqolot ulsttlbotloo of wotk to cettolo Offlclols
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Many flles produced Lo us were

creaLed" from phoLocoples by collecLlng
relevanL" documenLs from varlous
sources, orlglnals for whlch were noL
Lraceable,
ln many cases, correspondence was
handled and declslons Laken on e-malls
from personal e-mall lus (and noL Lhe
offlclal CC e-mall accounL), and prlnL-
ouLs of e-malls were noL unlformly kepL
ln flles,
MosL offlclals, especlally hlgher
managemenL, slgned records wlLhouL
daLe,
ulfferenL slgned verslons of mlnuLes of
Lhe same meeLlngs, and
lnadequaLe/no documenLaLlon of flle
movemenL, some flles whlch were
reporLed mlsslng" were found ln
unexpecLed locaLlons (e.g. Chalrman and
1reasurer's Cfflces) durlng our audlL and
durlng C8l surveys or searches.
1he mlnuLes of meeLlngs of Lhe LxecuLlve
ManagemenL CommlLLee (LMC) exempllfy
1
Lhe sLaLe of documenLaLlon. 1lll Aprll 2010 ,
Lhese meeLlngs were noL numbered, Lhere
were no agenda lLems, and LMC members
dld noL afflx Lhe daLe wlLh Lhelr slgnaLures.
1here were aL leasL 24 lnsLances of mlnuLes
for mulLlple meeLlngs purporLedly held on
Lhe same daLe and Llme for decldlng
dlfferenL lssues. ln an exLreme example, 7
meeLlngs were recorded Lo have been held
on Lhe same daLe and Llme, buL on dlfferenL
lssues.
1he sLaLe of documenLaLlon ln Lhe CC was
so lnadequaLe, LhaL we are unable Lo derlve
assurance as Lo elLher Lhe auLhenLlclLy of
Lhe records, or Lhelr compleLeness. ln
parLlcular, documenLaLlon wlLh regard Lo
conLracLlng for goods and servlces was
exLremely poor. Lven Lhe lnsLrucLlons of
november 2009 lssued by Lhe CLC for
proper flllng and documenLaLlon were
lgnored. 1hus, accounLablllLy for declslons
and acLs of omlsslon/commlsslon cannoL be
easlly ascerLalned. lL also made Lhe process
of declslon maklng non-LransparenL.
lnsLances of poor documenLaLlon lncluded:
lndex/ reglsLry of flles (wlLh numberlng)
noL malnLalned, cusLody of flles noL
speclfled,
llles noL page-numbered/ lncompleLe,
many parL" flles, ln many cases, flles
were [usL a collecLlon of loose sheeLs,
noLlngs and documenLs found mlsslng ln
a selecLlve manner,
7.2.3 Documentat|on
had observed that there was
cons|derab|e scope for |mprovement
|n the documentat|on and f|||ng
systems w|th|n CC, and systemat|c
procedures for documentat|on and
f|||ng were essent|a|, espec|a||y those
re|at|ng to correspondence w|th
d|fferent agenc|es, record|ng of
dec|s|ons on d|fferent act|v|t|es, and
vers|on contro| over p|ann|ng and
|mp|ementat|on documents. CC has
obv|ous|y |gnored our
recommendat|ons.
Documentat|on w|th|n CC
1
Aftet 5uC(l&A) become oo Mc membet lo Aptll 2010,
tbete wos o temotkoble lmptovemeot lo Jocomeototloo
of Mc mlootes, wblcb coolJ be telleJ opoo.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
before maklng paymenLs. 1hls lncluded
several lnsLances of
overpaymenLs,
lncorrecL conflrmaLlon of budgeL
avallablllLy,
paymenL wlLhouL approved conLracLs or
Lhe requlred cerLlflcaLlon by Lhe
luncLlonal Area head,
paymenLs wlLhouL adequaLe supporLlng
documenLaLlon (conLracL Lerms and
paymenL / raLes schedule lncludlng
llnkages wlLh dellverables/ mllesLones,
aLLendance sheeLs, sub-vouchers eLc.)
paymenLs ln forelgn currency for
conLracLs ln lndlan 8upees or lrregularly
beneflLlng Lhe conLracLors on forelgn
exchange flucLuaLlons. 1here were also
cases where approvals for paymenLs ln
forelgn currency were noL Laken
(deLalled ln Annexe-7.1).
Lxamples of deflclenL scruLlny lncluded
excess paymenL of 8s. 1.3 lakh Lo one
vendor for Lhe closlng ceremony, paymenL
for november 2009 Lo lebruary 2010 Lo Ms.
Saba All (earller consulLanL, C88 launch)
wlLhouL a valld conLracL, approval of
paymenLs for Lhe C88 launch, AnCC and
SLudy Cbserver Croup wlLhouL cerLlflcaLlon
by Lhe concerned lA head, and wrlLe-off of
sLores of 8s. 3.44 crore wlLhouL approval.
7.2.4 I|nanc|a|, taxat|on and

|ega| adv|ce] vett|ng
We found LhaL legal veLLlng was noL
conducLed by Lhe legal luncLlonal Area ln
more Lhan 30 percenL of Lhe conLracLs, ln a
few cases, Lhe legal veLLlng was acLually
done afLer Lhe conLracL was slgned. 1he
quallLy of LaxaLlon and legal veLLlng was also
deflclenL, as lL falled Lo safeguard Lhe
lnLeresLs of CC (e.g. by lgnorlng provlslons
for penal clause, performance guaranLees,
absence of clarlLy as Lo llablllLy for bearlng
Laxes). ln some cases, Lhe legal advlce glven
was also lgnored.
1he flnanclal advlce funcLlon (concurrenL aL
Lhe proposal sLage and before conLracL
flnallsaLlon) was ln exlsLence only from
SepLember 2003 Lo CcLober 2008, afLer
2
whlch lL was, ln effecL, dlspensed wlLh .
Lven when lL was ln exlsLence, flnanclal
advlce on Lhe senslLlve conLracL wlLh SMAM
was lgnored.
7.2.S rocess|ng of ayments
We found LhaL Lhere were several
deflclencles ln Lhe processlng of paymenLs
by Lhe llnance & AccounLs luncLlonal Area.
roposals were noL scruLlnlsed dlllgenLly
7.2.6 oor management of taxat|on
|ssues
We found LhaL CC's handllng of Lax-relaLed
lssues was exLremely poor, furLher, ln many
cases, CC dld noL consulL Lhelr own Lax
consulLanL: 2
1be lloooce ooJ Accooots lA (tespooslble fot ptocessloq
poymeots) olso JoobleJ os tbe lloooclol AJvlset, wblcb
wete esseotlolly locompotlble fooctloos ooJ
comptomlseJ lotetool coottols.
We are unab|e to der|ve assurance that
these LMC meet|ngs were actua||y he|d,
or the records produced to us are
comp|ete and authent|c, |t |s poss|b|e
that these LMC m|nutes were prepared
as an afterthought to f||| |n gaps |n
documentat|on and approva|.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC falled Lo deposlL servlce Lax ln Llme ln
respecL of Laxable servlces provlded by
forelgn servlce provlders, resulLlng ln
penal lnLeresL of 8s. 2.46 crore on
delayed servlce Lax deposlLs of 8s. 38.36
crore. CC also falled Lo deposlL servlce
Lax of 8s. 0.28 crore, already collecLed ln
respecL of raLe card servlces. lurLher, CC
pald 8s. 30.73 crore Lo servlce provlders,
who were noL reglsLered wlLh Lhe
Servlce 1ax ueparLmenL.
CC underLook Lo bear Laxes on behalf of

Lhe vendor ln 19 conLracLs, Lhls resulLed
3
ln paymenLs of 1uS of 8s. 7.40 crore by
Lhe CC on LoLal paymenLs of 8s. 134.09
crore under Lhese conLracLs.
under Lhe Lerms of Lhe uouble 1ax
Avoldance AgreemenL (u1AA) beLween
lndla and AusLralla, no wlLhholdlng Lax
was levlable on rlghLs fees of uS$ 33.30
mllllon recelvable by Lhe CC from
neLwork 1en AusLralla. Powever, Lhe CC
dld noL seek approprlaLe Lax advlce and,
lnsLead, lncorrecLly approached Lhe
AusLrallan 1ax Cfflce ln Aprll 2008 for Lax
exempLlon, whlch was re[ecLed ln March
2009. 1hls resulLed ln avoldable
deducLlon of uS$ 3.03 mlllon (8s. 23.11
crore) as wlLhholdlng Lax. 1hls amounL
can now be recovered only Lhrough
MuLual AgreemenL roceedlngs (MA)
under Lhe u1AA, whlch was lnlLlaLed
only ln SepLember 2010.
CC falled Lo obLaln Lhe An numbers of
vendors, resulLlng ln 1uS aL Lhe hlgher
raLe of 20 per cenL appllcable from Aprll
2010. ln Lhe case of Lhe 1S8 conLracL
wlLh Swlss 1lmlng Cmega (where Lhe CC
bore Lhe Lax burden), CC pald 8s. 7.10
crore addlLlonally as 1uS, due Lo delay ln
obLalnlng An reglsLraLlon.
CC falled Lo deducL 1uS on paymenLs Lo
LkS and SMAM (for C?C-2008, une) aL
Lhe hlgher raLe of 42.23 percenL
appllcable for a L (ermanenL
LsLabllshmenL) ln lndla, resulLlng ln
shorL-deducLlon of 8s. 3.06 crore and
8s. 1.04 crore respecLlvely.
7.2.7 Cutstand|ng Loans and Advances
CC had provlded recoverable/ ad[usLable
loans and advances Lo vendors/ CC offlclals
for varlous purposes. Cf Lhls, 8s. 8s.101.39
crore was sLlll ouLsLandlng (pendlng
ad[usLmenL/ repaymenL), deLalls are glven
ln Annexe 7.2.
7.2.8 Interna| Aud|t and V|g||ance
We found LhaL Lhe vlgllance funcLlon was
esLabllshed only ln March 2010, Lhe Chlef
vlgllance Cfflcer conLlnued Lo hold charge
as AuC (rocuremenL), a muLually
lncompaLlble funcLlon, for anoLher Lwo
monLhs. 1he lnLernal audlL seL-up was also
lneffecLlve, lL's plannlng, scope and
coverage were noL well-deflned, and Lhere
was pracLlcally no effecLlve follow-up acLlon
on Lhe lnLernal audlL flndlngs.
3
Oot of tbls, ks. 1.87 ctote wos oo occooot of blqbet 1u5
totes Joe to Oc's follote to obtolo lAN oombets of
veoJots.
If |mmed|ate act|on |s not taken, |t may
not be poss|b|e to recover the
outstand|ng amounts, s|nce the
re|at|onsh|p between the vendors]
off|c|a|s and the CC are on contractua|
bas|s for a ||m|ted t|me per|od.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
no conLracLs reglsLer (or equlvalenL
documenL) was malnLalned by Lhe CC. Cur
scruLlny ls Lhus llmlLed Lo Lhe conLracLs/
agreemenLs/ work orders abouL whlch we
could gaLher lnformaLlon. lncldenLally,
alLhough Lhe SC, who ls Lhe auLhorlzed
slgnaLory for all conLracLs, furnlshed a llsL of
only 326 conLracLs, we gaLhered
lnformaLlon ln respecL of 438 conLracLs, Lhls
ls also unllkely Lo be exhausLlve.
Cur concerns were, however, noL
approprlaLely addressed, and we found
enormous bunchlng of hlgh-value conLracLs
ln 2010, parLlcularly ln Lhe second and Lhlrd
quarLers. CuL of Lhe 438 conLracLs for 8s.
1331 crore, on whlch we have lnformaLlon,
428 conLracLs for 8s. 1336.33 crore were
flnallsed only ln 2010. Cf Lhese, 410
conLracLs for 8s. 1292 crore (82 per cenL)
were slgned ln Lhe 2nd and 3rd quarLers of
2010, Lhese lncluded ma[or conLracLs
relaLlng Lo:
Cverlays (8s. 630.23 crore),
CaLerlng (8s. 131.39 crore),
1echnology conLracLs (8s. 118.74 crore),
and
1lckeLlng agency (8s. 14 crore)
As regards ceremonles, 173 ouL of 173
4
conLracLs amounLlng Lo 8s. 208.73 crore
S
were awarded ln 2010, wlLh one conLracL
belng slgned on 30 CcLober 2010 (13 days
afLer Lhe Cames concluslon).
1he conLracLlng deflclencles/ lrregularlLles

lndlcaLed ln Lhls reporL are based on Lhe
lnformaLlon gaLhered by us from Lhe
records made avallable by CC. lL ls posslble
LhaL Lhere may be oLher lnsLances of
conLracLlng deflclencles/ lrregularlLles whlch
have noL come Lo our noLlce, due Lo
deflclencles and/ or lncompleLeness ln
documenLaLlon.
7.3.1 8unch|ng of Contracts |n 2010
4
S
xcept fot tbe coottocts fot 5pectok ltoJoctloos ooJ
wlzctoft
coottoct slqoeJ wltb nlqbwoy 1tovels fot cetemooles
We are not certa|n about the tota|
number of contracts] agreements] work
orders awarded by CC as we|| as the
extent of |ts ||ab|||t|es.
1he state of contract documentat|on |s
such that we are not sure of the ent|re
sequence of events |ead|ng to award of
contracts (e.g. |ssue of LCI] kI] kI
and cance||at|on] retender|ng thereof,
addendums] corr|gendums to tender|ng
documents).
We are a|so unab|e to ascerta|n
contract-w|se payments and outstand|ng
||ab|||t|es for each contract.
had expressed our concern that the
bunch|ng of procurement and other
dec|s|ons |n respect of over|ays, w|th|n
shortened t|meframes, c|oser to the
Games, carr|ed the r|sk of comprom|sed
transparency and accountab|||ty. We
had a|so recommended exped|t|ng of
steps for generat|ng sponsorsh|p and
other revenue due to the fast shr|nk|ng
w|ndow of opportun|ty |n |everag|ng
the Games.
8unch|ng of contracts]
act|v|t|es
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
dlsquallfylng all vendors excepL one on
quesLlonable grounds durlng evaluaLlon),
none of Lhese procuremenLs were for
proprleLary lLems. Some of Lhe hlgh value
conLracLs so awarded lnclude Cames vlllage
caLerlng, 1S8 (1lmlng, Scorlng and 8esulLs)
and CMS (Cames ManagemenL SysLem).
CC chose noL Lo make efforLs Lo collecL/
collaLe lnformaLlon for a wlde pool of large
players wlLh relevanL experlence and
encourage Lhem Lo bld for Lhe Cames
conLracLs (whlch would have ensured
adequaLe compeLlLlve Lenslon and
economlcal procuremenL), and relled on
selecLlve recommendaLlons and references.
awarded Lo vendors noL fulfllllng Lhe
ellglblllLy crlLerla sLlpulaLed ln Lhe LCl/ 8l.
1hese lncluded Lhe conLracLs relaLlng Lo
overlays, wasLe managemenL, and lmage
and look.
7.3.2.2 Award of conLracLs Lo lnellglble
vendors
6
lot tbls potpose, we bove excloJeJ coottocts oo
oomlootloo bosls fot moslc, Jooce ooJ otbet ottlsts.
llqote 7.J - 8oocbloq of coottocts of tbe Oc
1st
r
1st
r
1st
r
1st
r
2nd
r
2nd
r
2nd
r
2nd
r
3rd
r
2007
I|na||zat|on of Contracts
and Works at CC
0
S0
100
1S0
200
2S0
1 2 1 4 0 3 S 0 1 4 9
16
17S
23S
2
2008 2010 2009
3rd
r
3rd
r
3rd
r
4th
r
4th
r
4th
r
4th
r
7.3.2 Irregu|ar|t|es |n Contract|ng
7.3.2.1 Slngle Lender and award on
nomlnaLlon basls"
1he bunchlng of conLracLs Lowards 2010
and purporLed urgency, on accounL of
llmlLed Llme avallable Lo Lhe Cames, was
used Lo faclllLaLe serlous deflclencles ln
Lenderlng and award of conLracLs. 1hls
compromlsed Lransparency, economy and
compllance wlLh sLlpulaLed procedures and
favoured selecLed vendors.
A llsL of lndlvldual conLracLs where
lrregularlLles were noLlced ls enclosed ln
Annexe- 7.3, whlle a summary of Lhe maln
deflclencles ls lndlcaLed below.
awarded on nomlnaLlon basls (wlLhouL
6
Lenderlng ), whlle 28 conLracLs for 8s.
336.14 crore were awarded on Lhe basls of
a slngle Lender (ln many cases, by
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
7.3.2.3 8esLrlcLlve pre-quallflcaLlon (C)
condlLlons noL speclfled
conslsLenLly
7.3.2.4 negoLlaLlon wlLh vendors
7.3.2.3 lnadequacles ln lnvlLlng LCls/ 8ls
ln 16 conLracLs for 8s. 973.31 crore
(lncludlng Lhe four ma[or overlays
conLracLs), pre-quallflcaLlon condlLlons were
unduly resLrlcLlve, allowlng very few
vendors Lo parLlclpaLe. 1here was no
unlformlLy ln flxlng of resLrlcLlve condlLlons,
lL appeared LhaL ln some cases, crlLerla were
flxed so as Lo sulL Lhe lnLeresLs of parLlcular
vendors.
lor example, whlle lnvlLlng blds for four
dlfferenL works on Lhe same day, Lwo blds
speclfled C crlLerla as Cames experlence ln
Lhe relevanL fleld, whlle Lhe oLher Lwo blds
speclfled Cames experlence ln any fleld. 1he
laLLer C speclflcaLlon faclllLaLed award of
Lhe Cames lannlng and ro[ecL
ManagemenL consulLancy and workforce
consulLancy conLracLs for 8s. 31.96 crore Lo
Lhe LkS- LrnsL & ?oung consorLlum, who dld
noL have caLegory-speclflc experlence.
We also noLlced lnsLances of Lhese
resLrlcLlve clauses belng walved, on grounds
of urgency, Lo beneflL selecLed conLracLors,
whlle ln oLher cases, reLenderlng was
resorLed Lo. ln Lwo conLracLs, non-
submlsslon of LarnesL Money ueposlL
(LMu) was used Lo [usLlfy reLenderlng, whlle
ln flve oLher cases, conLracLs were flnallsed
desplLe non-recelpL of LMu from Lhe
successful bldder.
ln 7 conLracLs for 8s. 74.03 crore, CC held
negoLlaLlons wlLh bldders oLher Lhan Lhe L-1
bldders.
We found LhaL global Lenderlng procedures
(lnvolvlng publlcaLlon ln Lhe lndla 1rade
!ournal and clrculaLlng Lo lndlan embassles)
were never adhered Lo. AdequaLe Llme
(sLlpulaLed: 4 weeks) was noL provlded for
respondlng Lo noLlces lnvlLlng 8ls/
Lenders.
We are aware of nlne blg conLracLs, where
8ls/ LCls were cancelled and re-Lenderlng
resorLed Lo elLher on procedural grounds or
on accounL of poor response, resulLlng ln
furLher delays ln award of conLracLs, and
also ln many cases, ln resLrlcLed compeLlLlon
e.g. caLerlng, LlckeLlng, and 1S8.
ln 28 cases for 8s. 38.03 crore, 36 per cenL
of Lhe lLems were noL uLlllsed. ln 38 cases,
Lhe dellverables were elLher noL deflned aL
all or deflned vaguely. ln 10 conLracLs for 8s.
276.33 crore, Lhe scope of work ln Lhe
agreemenL dlffered subsLanLlally from LhaL
lndlcaLed ln Lhe 8l.
ln several cases, we found lnexpllcable
delays ln conLracL flnallsaLlon, e.g.
Cames vlllage caLerlng, where Lhe
Chalrman Look several monLhs Lo declde
wheLher Lo walve off Lhe LMu condlLlon
or noL, and
1he LlckeLlng consulLancy conLracL,
where Lhe uC (CC)'s query remalned
unanswered for a year.
lnexpllcable delays were also found ln
flnallsaLlon of conLracLs for ceremonles
props, Cames plannlng consulLancy, venue
caLerlng and several oLher conLracLs.
7.3.2.6 Lol/ 8l CancellaLlon and
re-Lenderlng
7.3.2.7 lmproper assessmenL of
requlremenLs / dellverables
7.3.2.8 lnexpllcable delays ln conLracL
flnallsaLlon

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
superlor", and noL openlng Lhe flnanclal
blds of oLher parLles,
CbLalnlng of Lechnlcal advlce on a
selecLlve basls e.g. 1ClL's advlce was
obLalned for dlsquallfylng MSL, Spaln for
Lhe 1S8 conLracL buL noL for
LelecommunlcaLlons servlces.
We also found LhaL even afLer selecLlon of

Lhe vendor, Lhe slgnlng of Lhe conLracL Look
several monLhs, whlch ls lnexpllcable e.g.
1S8, CMS, and Cames 1lme WebslLe
conLracLs.
ln nlne cases (sporLs presenLaLlons, klLchen
equlpmenL assembly, aerosLaL, and
ceremonles eLc.), Lhere were clear lnsLances
of confllcL of lnLeresL beLween Lhe
consulLanL and Lhe conLracLor
recommended for provldlng servlces.
ln slx cases of 8s. 40.6 crore, CC exLended
advances ranglng from 30 Lo 100 per cenL,
agalnsL Lhe sLlpulaLed 30 per cenL and 40
per cenL for prlvaLe and CovernmenL
agencles respecLlvely.
We found lnsLances where Lhe burden of
Lax llablllLy ln Lhe agreemenLs dlffered
subsLanLlally (beneflLlng Lhe conLracLors)
wlLh Lhe condlLlons ln Lhe 8l/ LCl, as well
as lnsLances where CC Look on Lhe Lax
llablllLy slnce Lhe conLracL Lerms were vague
or sllenL.
We also found oLher unusual conLracLlng
pracLlces:
Calllng for snap blds" wlLhln 24 hours -
Lyplcally from Lhe same bldders ln
Lenders whlch were cancelled (evldenLly
Lo allow revlslon of blds) e.g. venue
caLerlng, and lmage and look.
1ermlng of only one bld ouL of several
Lechnlcally quallfled blds as Lechnlcally
7.3.2.9 ConfllcL of lnLeresL
7.3.2.10 lrregular advance paymenLs
7.3.2.11 8eneflL Lo vendors on accounL
of Lax llablllLy
7.3.2.12 CLher unusual pracLlces
Lven after four months of the Games,

f|na| payments were yet to be made |n
many h|gh-va|ue contracts, nor |s the
tota| amount of ||ab|||t|es ascerta|nab|e.
S|nce the CC |s schedu|ed to be wound
up on 31 March 2010, the burden of
outstand|ng payments, as we|| as
reso|ut|on of d|sputes w|th vendors, w|||
then fa|| on the GoI, as the successor to
the CC, th|s burden w||| be |ong-term,
but unquant|f|ab|e at th|s stage.
I|na| ayments st||| not made
7.4 CC-ICA re|at|onsh|p
AlLhough Lhe lCA was one of Lhe slgnaLorles
Lo Lhe PCC, Lhe CC was an lndependenL
legal enLlLy. Powever, we found several
lnsLances where Lhe vasL funds avallable Lo
Lhe CC were used Lo lrregularly fund
acLlvlLles, whlch properly fell wlLhln Lhe
remlL of lCA, or Lo lrregularly beneflL lCA aL
Lhe expense of CC (and ulLlmaLely Lhe Col).
1here was a blurrlng of ldenLlLles of Lhe Lwo
organlsaLlons, whlch furLher enabled lCA
(and lLs offlce bearers) Lo effecLlvely
exerclse conLrol over Lhe CC, aL Lhe expense
of Lhe Col.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
7
8
9
ANOc. Assoclotloo of Notloool Olymplc commlttee
MA5 opptoveJ o 166-sttooq Jeleqotloo fot tbls eveot.
AccotJloq to tbls oqteemeot, lOA clolmeJ owoetsblp tlqbts oo tbe loJloo cootloqeot. 1o potpotteJly eooble Oc to Jetlve
spoosotsblp teveooe by osloq tbe loJloo cootloqeot/loJloo spottspetsoos, lOA cbotqeJ compeosotloo of ks. 25 ctote ftom
tbe Oc. we ote oot lo o posltloo to oscettolo tbe leqollty of lOA's clolm.
Area Aud|t I|nd|ngs
Common Management
CC Iund|ng of 8e|[|ng
C|ymp|cs Study
Cbserver rogramme
7
and ANCC
Meet|ng |n 2008
kenovat|on and
furn|sh|ng of ICA
8hawan at CC's Cost
Accommodat|on at
a||ka |ace for Sports
Iederat|ons
Add|t|ona| ayments
beyond Io|nt Market|ng
Agreement
Grant to CGAs under
nost C|ty Contract for
tra|n|ng and prepar|ng
ath|etes
1lll CcLober 2009, Lhe hlgher managemenL of CC and lCA offlce
bearers/ key poslLlon holders were largely common. Lven ln Lhe
offlcers' cadre, Lhere were many lCA personnel depuLed Lo Lhe CC,
noLably Lhe only Lwo lCA ulrecLors - Shrl 8k SacheLl and Shrl ASv
rasad.
8
CC pald 8s. 8.30 crore for Lhe 8el[lng 2008 Cbserver rogramme and
for Lhe AnCC MeeLlng aL 8el[lng ln Aprll 2008. nelLher programme
had any relevance Lo Lhe hosLlng of CWC-2010. 1hls cosL should,
rlghLfully, have been borne by lCA and should ln no case have been
meL ouL of Lhe budgeL of CC.
lor Lhe 8el[lng Cbserver rogram, CC had a llsL of 166 persons
approved by Lhe LMC, however, lL ls doubLful wheLher Lhls llsL ls
compleLe. lor Lhe AnCC meeLlng, CC depuLed an 18 member
delegaLlon (lncludlng flve persons assoclaLed wlLh C?C-2008, une).
1here were no crlLerla for selecLlon of persons for Lhese vlslLs. 1here
were also no reporLs (afLer compleLlon of Lhe vlslLs) on record.
CC spenL 8s. 4.11 crore for renovaLlon of Lhe enLlre lCA 8hawan. 1hls
was purporLedly ln exchange for renL free offlce accommodaLlon of
20,000 sq. leeL, whlch was reduced Lo 6,730 sq. leeL (effecLlvely
from !anuary 2008), however, CC also pald renL and malnLenance
charges of 8s. 3.33 crore.
1hus, ICA managed to get the ICA 8hawan comp|ete|y renovated
and furn|shed at the cost of CC and u|t|mate|y GCI , on the pretext
of prov|d|ng part of the 8hawan on rent free bas|s to CC, wh|ch too,
was not honoured and rent and ma|ntenance charges were pa|d by
the CC.
CC pald 8s. 3.3 crore Lo nuMC for hlrlng offlce space aL allka lace
from !uly 2008 onwards, Lhls space was uLlllsed by varlous sporLs
federaLlons and was noL requlred for CC's use.
CC had a !olnL MarkeLlng AgreemenL wlLh lCA for compensaLlon of
9
8s. 23 crore ln exchange for lCA's properLy rlghLs ", agalnsL whlch
paymenLs of 8s. 8.73 crore had been made. Powever, desplLe Lhls
agreemenL, CC also pald 8s. 7.70 crore (on accounL of pockeL
allowance, unlform for Lhe lndlan conLlngenL, and for Lhe lndlan
WelghLllfLlng lederaLlon), whlch should have been deducLed from
paymenLs Lo lCA.
1he PCC sLlpulaLed a granL of uS$ 100,000 by CC Lo each CCA for
Lralnlng and preparlng Lhelr aLhleLes. lCA also recelved uS$ 100,000,
whlch should have been recovered, slnce SAl had a 8s. 678 crore
scheme for Lralnlng and preparlng lndlan aLhleLes.
1oble 7.J - lostooces of ltteqolot 8eoeflt to lOA
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC hlred 108 consulLanLs/advlsors/
consulLancy flrms ln 28 (ouL of 34 lAs) for
Lhe organlzaLlon of Lhe games, Lhls lnvolved
a LoLal paymenL of 8s. 146 crore
(approxlmaLely 10 per cenL of CC's LoLal
expendlLure Llll daLe).
We found numerous deflclencles ln Lhe CC's
procedures for appolnLmenL and
managemenL of consulLancy conLracLs, as
summarlzed below:
1he CC recognlzed LhaL Lhe CC would
need Lo hlre exLernal consulLanLs and
advlsors. 1hey would brldge gaps ln areas
where exLernal professlonal asslsLance was
requlred and asslsL ln sLrengLhenlng
domesLlc capaclLles for fuLure conducL of
mulLl-sporL evenLs ln lndla.
7.S ko|e of Consu|tants
Area Aud|t I|nd|ngs Aud|t I|nd|ngs
Mode of
Appo|ntment
De|ayed
Appo|ntment
Scope of work
Contracts
appolnLed on nomlnaLlon basls,

MosL of Lhe consulLanLs for ceremonles,
legal, communlcaLlon, LaxaLlon, securlLy,
overlays, Lechnology were appolnLed on
nomlnaLlon basls,
Ma[or funcLlonal areas ln whlch
appolnLmenL of consulLanLs was delayed
Llll 2010 lncluded:
17 of 19 consulLanLs ln ceremonles,
4 of 28 consulLanLs of venue
uevelopmenL and overlays, and
4 of 3 consulLanLs ln communlcaLlons.
6 archlLecL consulLanLs (all of Lhem were
subsequenLly employed by Lhe CC), 4
Lechnology consulLanLs were appolnLed
wlLhouL any deLalled scope of work.
All archlLecL consulLanLs, 2 Medla advlsors
and 1 securlLy advlsor dld noL have formal
conLracLs.
ConsulLanLs for sporLs presenLaLlon
ceremony, venue developmenL and
overlays
Chlef Advlsor, Shrl 8S C[ha, ex-uC, CC was
on nomlnaLlon basls
and 31 were Lhrough
search commlLLee,
Cnly 13 consulLanLs
were appolnLed
Lhrough Lhe proper
Lenderlng process,
Cnly 17 consulLanLs
had been appolnLed
Llll uecember 2007,
CC dld noL deflne
Lhe deLalled scope of
work for 39
consulLanLs
CC dld noL slgn
formal conLracLs
wlLh 43 consulLanLs
aymenLs were noL
llnked Lo
dellverables ln
respecL of 94
consulLanLs
62 were appolnLed
1oble 7.4 - ueflcleocles lo Appolotmeot of coosoltoots
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
A compleLe llsLlng of consulLancy conLracLs,
along wlLh assoclaLed deflclencles, ls
enclosed ln Annexe- 7.4.
Area Aud|t I|nd|ngs Aud|t I|nd|ngs
Interchange
between
consu|tancy and
emp|oyment
uC(CC) and 1 overlays consulLanL.

13 archlLecL consulLanLs, 2 ersLwhlle
laLer on appolnLed
as employees of CC,
whlle Lhree
employees of CC
laLer became
consulLanLs Lo CC
(whlch ls noL as per
accepLed
professlonal norms).
16 consulLanLs were
Iurther, we were unab|e to ver|fy the
extent of domest|c capac|ty bu||d|ng, |f
any, through h|r|ng of these externa|
consu|tants] adv|sors.
C
n
A
1
L
k
kevenue Generat|on by CC
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8
4t o// points of time {riqht from biddinq for the 6omes in Moy 200l), lO4 ond the Oc
consistent/y presented stoqinq of the 6omes os revenue neutro/, if not revenue surp/us.
1his orqument wos used to justify the independence of the Oc ond /ock of 6overnment
contro/ on its finoncio/ tronsoctions. nowever, this premise wos serious/y f/owed:
1his ossertion of revenue neutro/ity wos never supported by robust ond oppropriote/y
vo/idoted revenue projections. ln foct, between Morch 2007 ond lu/y 2008, the
revenue projections skyrocketed from ks. 900 crore to ks. 1780 crore, primori/y on
occount of inf/otinq receipts from sponsorship ond donotions without justificotion. ln
our view, this increose in revenue projections wos mode with the so/e objective of
keepinq poce with the vost/y increosed operotinq expenditure estimotes, so os to
mointoin the c/oim of revenue neutro/ity.
8oth MY45 ond Mol foi/ed to exercise necessory due di/iqence, ond did not odequote/y
exomine ond scrutinise the revenue projections or roise "red f/oqs" on this critico/ issue
ot the hiqhest /eve/s of 6overnment, especio//y on the quontum jump in revenue
projections from ks. 900 crore to ks. 1780 crore, ond chose to qo o/onq with the Oc's
c/oims of revenue neutro/ity.
Oc recorded toto/ committed revenues of just ks. 82.0 crore, of which on/y ks. 440.4l
crore hod been reo/ised. 4fter deductinq revenue qenerotion costs of ks. 2.47 crore, the
net revenue reo/isotion wos just ks. 17l.9 crore. c/eor/y, Oc foi/ed to exp/oit the vost
revenue potentio/ of the 6omes.
Oc's enqoqement of 5M4M os the consu/tont for sponsorship ond merchondisinq/
/icensinq riqhts wos f/owed on severo/ counts:
1he pre-conditions for biddinq stipu/oted experience of internotiono/ mu/ti-sports
events ond iqnored the vost potentio/ of the lndion morket.
1he oword of the controct to 5M4M wos essentio//y on o sinq/e finoncio/ bid, ond wos
undu/y inf/uenced by the recommendotions of the c6l cO, 5hri Mike nooper who
suqqested o neot division of consu/toncy controcts between 5M4M ond lost 1rock
vents.
1he controctuo/ provisions with 5M4M were deficient ond undu/y fovoured it.
ChapLer 8 - 8evenue CeneraLlon by CC
1he performonce of 5M4M durinq cY6-2008, Pune os we// os the 8k {/ounch ond
internotiono/ /eq) wos demonstrob/y poor. Oc chose not to derive /essons from their poor
trock record, ond terminoted the controct on/y in 4uqust 2010.
4qoinst the sponsorship torqet of ks. 90 crore, Oc qeneroted committed sponsorship
revenue of just ks. l75.1 crore. Neor/y 7 per cent wos from 6overnment oqencies/ P5u,
ond l per cent wos in the form of "vo/ue in kind" {which remoined /orqe/y unoccounted
for). Oc foi/ed to fo//ow up odequote/y on sponsorship offers from reputed componies,
controsted with the unusuo/ enthusiosm ond interest it showed in inf/otinq sponsorship
revenue projections. Oc o/so wosted ks. l.08 crore on rood shows ond discounted tickets
for the 8usiness c/ub of lndio, which wos formed for supportinq morketinq efforts for
cw6-2010 but qeneroted no revenue.
Oc irrequ/or/y se/ected Premier 8ronds Limited {P8L) os the "moster /icensee" for
merchondisinq ond /icensinq riqhts without even siqninq o formo/ oqreement with P8L.
consequent/y, no royo/ty hos been received so for by the Oc.
1he commercio/ exp/oitotion of notiono/ ond internotiono/ broodcostinq riqhts wos bod/y
monoqed. 1he oqreement for notiono/ broodcostinq riqhts between Oc ond Prosor
8horoti wos siqned on/y on 2l 5eptember 2010, resu/tinq in qenerotion of just ks. 24.70
crore of revenues for the Oc. with reqord to internotiono/ broodcostinq riqhts, Oc cou/d
siqn oqreements for on/y ks. 21l.4 crore, of which on/y ks. 191.40 crore hod been
received. Oc o/so foi/ed to exp/oit the morket for new medio riqhts {lnternet, mobi/e/ 5M5
etc.) os we// os "biq screen riqhts" for the 6omes.
Oc's performonce on ticketinq wos o/so deficient. 1he oppointment of the ticketinq
consu/tont ond the ticketinq oqency wos de/oyed enormous/y, ond morketinq of tickets
wos token up on/y in 5eptember 2010. 1he issue of comp/imentory tickets {porticu/or/y
hiqh vo/ue tickets) wos excessive {neor/y thrice thot of eor/ier cw 6omes ot Monchester
ond Me/bourne). 4/so, Oc odopted o wide ronqe of ticket pricinq, controry to the
recommendotions of consu/tonts, which contributed to /ow ticket so/es {porticu/or/y of
hiqh denominotions). 1his wos compounded by Oc's refuso/ to permit ticket so/es ot the
out/ets of lkc1c {the moin ticketinq oqency) on specious qrounds. consequent/y, oqoinst
the torqet of ks. 100 crore, Oc cou/d on/y muster ks. l9.17 crore of qross ticketinq revenue.
4fter settinq off costs of ks. 2l.l7 crore, the net ticketinq revenue wos just ks. 15.80 crore.
Oc inc/uded o revenue torqet of ks. l00 crore in lu/y 2008 from donotions/ roff/e,
essentio//y to mointoin the c/oim of revenue neutro/ity. 4qoinst this torqet, Oc co//ected o
po/try sum of ks. 0.99 crore.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
(maLchlng Lhe flgures lndlcaLed ln Lhe bld
2
documenL ). no reference was made Lo
dlrecL fundlng from Col ln Lhe form of
loans/ granLs, alLhough Lhe approval of Col
guaranLee for underwrlLlng Lhe cosL of Lhe
Cames was recommended on Lhe basls of a
pro[ecLed surplus of approxlmaLely 8s. 30-
60 crores.
8.1.1 In|t|a| kevenue Lst|mates
M?AS moved a CablneL noLe ln May 2003 Lo
granL approval Lo Lhe lCA Lo bld for Lhe
Cames. 1he revenue esLlmaLes ln Lhls noLe,
as worked ouL by lCA (Lhrough sponsorshlp)
amounLed Lo 8s. 490 crore, agalnsL Lhe
pro[ecLed expendlLure of 8s. 293.30 crore.
Powever, no break-up of Lhese pro[ecLlons
was provlded.
When Lhe lssue was agaln Laken Lo Lhe
1
CablneL ln SepLember 2003 , Lhe revenue
esLlmaLes of 8s. 490 crore were relLeraLed,
whlle Lhe annexed correspondence wlLh Lhe
lCA lndlcaLed a flgure of uS$ 179.9 mllllon
8.1.2 1rend of Increas|ng kevenue
ro[ect|ons
1he lncreaslng Lrend of revenue pro[ecLlons
from Lhe lCA bld documenL (May 2003) Lo
CC's flrsL budgeL (March 2006) Lo lLs
revalldaLed budgeL (!uly 2008) ls reflecLed
below:
1
2
3
4
Mololy lo coooectloo wltb tbe oJJltloool commltmeots/ clotlflcotloos tepolteJ by tbe cCl volootloo commlssloo
1be lOA blJ Jocomeot (Moy 200J) boJ stlll oot beeo sooqbt by MA5 ot tefetteJ to lo tbe 5eptembet 200J cobloet oote.
coovetteJ ftom Auu ks. JJ/ Auu
1otol looo sooctlooeJ ks. (1620 - 687.06 - 19J.42) ctote
8.1 kevenue-neutra||ty of
the Games
Note.
# llqotes lo lOA blJ Jocomeot coovetteJ ftom u55 to ks. ks. 45/u55
*Opetotloq expeoses tefets ooly to expeoses of tbe Oc, ooJ excloJes expeoJltote oo loftosttoctote Jevelopmeot ooJ
setvlces ptovlJeJ by Covetomeot uepottmeots (wblcb woolJ bove to be met tbtooqb Covetomeot qtoots/ fooJloq).
kevenue streams Cperat|ng
kevenues
from
Me|bourne
3
CWG-2006
ICA 8|d
Document
(May 2003)#
CC's Cr|g|na|
8udget
(March 2006)
CC's
keva||dated
8udget
(Iu|y 2008)
kevenue
rea||sed
(Iebruary
2011)
Sponsorsh|p fee
8roadcast|ng r|ghts
Merchand|s|ng ||cens|ng
|ncome
Sa|e of t|ckets
Donat|ons
Interest] Cthers
1ota|
Lst|mated Cperat|ng
Lxpenses*
Lst|mated Surp|us
313.83
203.92
30.69
261.69
33.66
843.79
-
-
430
300
60
30
-
840
633
203
430
300
30
100
-
900
767
133
960
370
30
100
300
1780
4
2300.48
-
201.63
191.40
-
27.49
0.99
18.92
440.43
1729.93
(8s. ln Crore)
1oble 8.1 - keveooe stlmotes ooJ keollsotloo
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8.2.1 Lxam|nat|on of Cr|g|na| 8udget
of CC
When Lhe orlglnal CC budgeL of March
2006, lnvolvlng revenue pro[ecLlons of 8s.
900 crore, was examlned by Lhe LlC ln May
2006, Lhe Lhen SecreLary (SporLs) lndlcaLed
LhaL Lhe revenue neuLrallLy prlnclple would
be sLrlcLly followed, wlLh expendlLure
sancLlons Lo be based on revenue lnflows.
Chalrman, CC counLered LhaL Col sboolJ
bove foltb lo tbe oblllty of Oc to qeoetote
tbe teveooe os ptojecteJ". Pe also sLaLed
LhaL such Cames had been revenue surplus
all over Lhe world, and LhaL mosL of Lhe
revenue flows would come afLer Lhe Cames.
CuL of Lhe LoLal revenue pro[ecLlons of 8s.
900 crore, revenues of 8s. 430 crore were
8.2 C|a|m of revenue
neutra||ty
pro[ecLed durlng 2010-11 and 8s. 323 crore
durlng 2011-12.
ln Lhe nexL LlC meeLlng ln SepLember 2006,
Lhe LlC recommended LhaL a rlsk analysls
sLudy of Lhe pro[ecLed revenue sLreams be
underLaken expedlLlously by CC and
lncorporaLed ln Lhe CablneL noLe on Lhe CC
budgeL, so as Lo valldaLe Lhe prlnclple of
revenue neuLrallLy. Powever, Lhe CablneL
noLe of March 2007 for approval of Lhe CC
budgeL dld noL lnslsL on Lhe rlsk analysls
sLudy on Lhe grounds LhaL Lhe CC had
engaged LrnsL & ?oung (L&?) for a rlsk
assessmenL sLudy, and a drafL reporL was
currenLly under examlnaLlon of Lhe CC. 1he
CC budgeL was approved wlLhouL even
obLalnlng, leL alone examlnlng, Lhls sLudy.
1he lssue of Lhe rlsk analysls sLudy came up
agaln only ln CcLober 2009, whlle examlnlng
Lhe revlsed CC budgeL.
Lven when Lhe lCA proposal for blddlng for
Lhe xvll Aslan Cames 2014 was belng
consldered Lhrough a CablneL noLe of Aprll
2007 by M?AS, a passlng reference was
made LhaL Lhe presenL revenue generaLlon
esLlmaLes for CWC-2010 were unLesLed, and
CovernmenL would have Lo meeL Lhe
shorLfall, lf any. Powever, Lhls aspecL was
noL pursued furLher by M?AS.
SubsequenL Lo Lhe !uly 2008 budgeL (whlch
was approved ln november 2009), CC was
sancLloned addlLlonal Col loans of 8s
880.48 crore ln AugusL/ SepLember 2010 Lo
cover Lhe cosL of overlays and ceremonles.
1hls lncreased Lhe LoLal loan exLended Lo
Lhe CC Lo 8s. 2300.48 crore, and formally
rendered Lhe organlsaLlon of Lhe Cames as
revenue deflclL, slnce Lhe revenue esLlmaLes
remalned flxed aL 8s 1780 crore.
1he 'revenue neutra||ty' argument
formed the bas|s on wh|ch CC's
expend|ture was f|nanced as a |oan by
the GoI. 1he assert|on for autonomy of
the CC was prem|sed on the concocted
revenue neutra||ty argument. nowever,
far from be|ng revenue neutra|, CC's
budget was huge|y revenue def|c|t.
8oth MAS and MoI fa||ed to exerc|se
necessary due d|||gence, and d|d not
adequate|y exam|ne and scrut|n|se the
revenue pro[ect|ons or ra|se "red f|ags"
on th|s cr|t|ca| |ssue at the h|ghest |eve|s
of Government. 1he r|sk assessment
study of revenue pro[ect|ons was not
demanded from CC, |et a|one scrut|n|zed
and va||dated. 1he "fa|th" |n the ab|||ty
of CC to generate the pro[ected revenue
was c|ear|y, ent|re|y m|sp|aced.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8.2.2 kev|sed 8udget of CC
ln Lhe CC's revlsed budgeL of !uly 2008, Lhe
revenue pro[ecLlons skyrockeLed, wlLhouL
any basls, from 8s.900 crore Lo 8s. 1780
crore, wlLh Lhe pro[ecLed lncrease malnly on
accounL of sponsorshlp revenues (8s. 430
crore Lo 8s. 960 crore) and donaLlons (a
new llne lLem for 8s. 300 crore)
1he CablneL noLe of CcLober 2009 for
approvlng Lhe revlsed CC budgeL (!uly 2008)
of 8s. 1780 crore lndlcaLed a revenue
surplus of 8s. 88 crore (afLer cerLaln
economy measures effecLed by Lhe
CommlLLee on non-lan LxpendlLure (CnL)),
and sLaLed LhaL alLhough a rlsk analysls of
pro[ecLed revenue sLreams had been
conducLed by Lhe CC, Lhe rlsk facLors
ldenLlfled and Lhe rlsk mlLlgaLlon measures
In our v|ew, th|s |ncrease |n revenue
pro[ect|ons had no [ust|f|cat|on and was
made w|th the so|e ob[ect|ve of keep|ng
pace w|th the vast|y |ncreased operat|ng
expend|ture est|mates, so as to ma|nta|n
the c|a|m of revenue neutra||ty. 1he
|naccuracy of the |ncreased pro[ect|ons
on account of sponsorsh|p |s borne out
by the fact that the contracted
comm|tment of the sponsorsh|p
consu|tant (SMAM) was not
correspond|ng|y rev|sed and rema|ned
on|y at US5100 m||||on (equ|va|ent to
the or|g|na| pro[ect|on of ks. 4S0 crore).
In our Study keport of Iu|y 2009, by
when |t had become ev|dent and we
had c|ear|y observed, the c|a|m of the
Games be|ng revenue neutra| |n cash
terms was f|awed. 1he ava||ab|e
documentat|on cou|d not sat|sfy us of
the soundness of the |ncreased
est|mate of revenue:
Donat|ons of ks. 300 crore were
est|mated by the CC, wh|ch |n|t|a||y
stated that th|s wou|d be done
through an aggress|ve|y marketed
D|sc|a|mer on
kevenue Neutra||ty
consumer promot|on, but |ater stated
that th|s wou|d come from corporate
trusts on account of I1 exempt|on.No
bas|s for such opt|m|st|c c|a|ms were
seen
As regards the |ncrease |n pro[ected
sponsorsh|p fees from ks. 4S0 crore
to ks. 960 crore, we were not c|ear
how Va|ue |n k|nd (VIk), wh|ch was
supposed to const|tute a ma[or|ty of
sponsorsh|p revenues, cou|d be
prec|se|y doveta||ed to set off
|nd|v|dua| |tems of operat|ng
expenses. We had a|so found
d|screpanc|es |n the under|y|ng
ca|cu|at|ons for d|fferent categor|es of
sponsors.
We had a|so expressed concerns that
no revenue generat|on had taken
p|ace from sponsorsh|p, t|cket|ng,
merchand|s|ng and ||cens|ng t||| date.
We had recommended exped|t|ng of
steps for generat|ng sponsorsh|p and
other revenue, |n v|ew of the fast
shr|nk|ng w|ndow of opportun|ty |n
|everag|ng the Games.
nowever, no concrete act|on was taken

on our concerns and recommendat|ons.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
suggesLed for Lhe revenue sLreams as
shown by CC were "|arge|y untested |n
S
Ind|an cond|t|ons ". Powever, Lhls lssue was
noL Laken furLher.
ln response Lo our query, M?AS sLaLed LhaL
Lhe shorLfall of revenue generaLlon had
been dellberaLed ln Lhe meeLlngs on varlous
occaslons and Lhe CC had promlsed Lo
reduce Lhe shorLfall Lo a mlnlmum. lL
referred Lo Lwo leLLers from Lhe ersLwhlle
MlnlsLer, ?AS, Shrl Manl Shankar Alyar, Lo
Lhe rlme MlnlsLer and Lhe llnance
MlnlsLer, whlch referred Lo (a) Lhe posslblllLy
of CC ralslng flnances from Lhe markeL as a
bankable" proposal, and (b) llnklng furLher
releases Lo Lhe CC Lo revalldaLlon of Lhe CC
budgeL. M?AS also referred Lo a menLlon by
SecreLary, ?AS ln Lhe AugusL 2007 CoM
meeLlng, references ln Lhe CcLober 2009
CablneL noLe, as well as monlLorlng of
revenue generaLlon by CoS ln !uly 2007 and
lebruary 2008.
MAS and MCI d|d not r|gorous|y
scrut|n|ze or va||date the huge |ncrease
|n revenue pro[ect|ons, and cont|nued to
accept the c|a|m of revenue neutra||ty
pro[ected by the CC.
8.2.3 Actua| kevenue Comm|tment and
kea||sat|on
AgalnsL Lhe revenue LargeL of 8s.1780 crore,
CC recorded commlLLed revenue of [usL
8s.682.06 crore, of whlch only 8s. 440.43
crore had been reallzed (lebruary 2011).
1he revenue generaLlon cosLs amounLed Lo
8s 266.47 crore, leavlng neL revenue
reallsaLlon (afLer deducLlng assoclaLed
cosLs) of [usL 8s. 173.96 crore. SLream-wlse
deLalls of LargeLed, commlLLed and reallsed
revenue (as of lebruary 2011) are glven ln
1able 8.2.
1he references and |ntervent|ons by
MAS on revenue neutra||ty were
|nadequate and ob||que. Lven Shr|
A|yar's |etters focused pr|mar||y on the
|ack of contro| over CC, rather than on
the robustness of the revenue mode|. In
our v|ew, MAS (and MoI) d|d not
ser|ous|y cha||enge the re||ab|||ty and
robustness of the revenue pro[ect|ons,
nor d|d they present a categor|ca|
d|sc|a|mer or op|n|on on the pro[ected
revenue neutra||ty at the h|ghest |eve|s
of Government.
S
loclJeotolly, eveo o copy of tbls tlsk ooolysls stoJy wos oppoteotly oot ovolloble wltb MA5.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Clearly, Lhe CC falled Lo explolL Lhe vasL
revenue poLenLlal of Lhe Cames. 1here was
a huge shorLfall ln generaLlng revenue
commlLmenLs vls--vls noL [usL Lhe revlsed
LargeL, buL even Lhe orlglnal LargeL of 8s.
900 crore, Lhls, furLher, conflrms Lhe
unreallsLlc and lnflaLed naLure of Lhe
revenue pro[ecLlons. lurLher, CC could
collecL [usL 63 per cenL of even Lhe
commlLLed revenue. AfLer deducLlng Lhe
expendlLure lncurred by CC on consulLanLs
eLc. for revenue generaLlon, Lhe neL revenue
accrulng from CWC-2010 ls lnslgnlflcanL.
kevenue streams 1arget
(Iu|y 2008)
Comm|tted
kevenue
er cent
shortfa||
|n
comm|tment
kevenue
rea||zed
aga|nst
comm|tment
Cost of
ka|s|ng
kevenue
Sponsorsh|p fee
8roadcast|ng r|ghts
Merchand|s|ng ||cens|ng
|ncome
Sa|e of t|ckets
Donat|ons] kaff|e
kevenue from
CG une 2008
1ota|
960
370
30
100
300
no 1argeL
flxed
1780
373.16
238.17
4.32
39.17
1.11
23.93#
682.06
61
36
91
61
100
--
62
201.63
191.40
-
27.49
0.99
18.92
440.43
190.74*
43.64
0
23.37
0
6.72
266.47
(8s. ln Crore)
1oble 8.2 - coteqoty wlse bteokop of tbe commltteJ ooJ keollseJ keveooe
Notes.
*1bls locloJes tbe llceose fee to cCl ooJ expeoJltote oo 8cl octoss teveooe stteoms
#1bls locloJeJ 5poosotsblp ks.20.17 ctote, M&l ks.2.J4 ctote, 1lcketloq ks.1.J0 ctote ooJ 1v tlqbts ks. 0.12 ctote
8.3 De|ay |n |ann|ng for
kevenue Generat|on:
We found lack of focused leadershlp for Lhe
four revenue-relaLed luncLlonal Areas
(sponsorshlp, 1v rlghLs, merchandlslng and
llcenslng, and LlckeLlng), wlLh numerous
changes ln leadershlp Llll laLe 2009. We also
found subsLanLlal delays ln preparaLlon of
deLalled plans for each revenue segmenL, as
summarlsed ln 1able 8.3.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8.4 Sponsorsh|p kevenue
1oble 8.J - ueloyeJ lloooloq fot keveooe 5eqmeots
kevenue Segment Area 1arget Date Actua| Date of I|na||sat|on
Sponsorsh|p
Merchand|s|ng
and L|cens|ng
1|cket|ng
Donat|on] kaff|e
MarkeLlng lan
AppolnLmenL of Sponsorshlp
ConsulLanL
AppolnLmenL of Llcenslng
8esources
Llcenslng and Merchandlslng lan
Llcenslng MarkeLlng rogram
Launch
Consumer Launch of
Llcenslng rogram
1lckeLlng SLraLegy
1lckeLlng vendor ConLracLed
1lckeLlng MarkeLlng lan Lo be
submlLLed Lo CCl
CcL. 2003
-
Aprll 2007
CcL. 2007
Aprll 2008
Aprll 2009
!une 2008
CcL. 2008
!uly 2009
uecember 2007
!uly 2007
!uly 2007
!une 2009
May 2010
SepLember 2010
uecember 2009
!anuary 2010
noL done
no plannlng done
8.4.1 Se|ect|on of SMAM as sponsorsh|p
and merchand|s|ng] ||cens|ng
consu|tant
1he process for engagemenL of an
lnLernaLlonal consulLanL for sponsorshlp and
merchandlslng/ llcenslng sLarLed ln March
2006 and concluded wlLh Lhe engagemenL
of SMAM, Slngapore ln !uly 2007.
1he se|ect|on of SMAM was undu|y
|nf|uenced by the recommendat|ons of
the CGI CLC, Shr| M|ke nooper, who
c|ear|y suggested a neat d|v|s|on of
consu|tancy contracts for
sponsorsh|p, merchand|s|ng and
||cens|ng, and |nternat|ona|
broadcast|ng r|ghts between SMAM
and Iast 1rack Lvents, and
recommended that the L8 may
approve appo|ntment of SMAM and
Iast 1rack Lvents for the sponsorsh|p]
merchand|s|ng ] ||cens|ng and
|nternat|ona| broadcast|ng
consu|tancy contracts respect|ve|y
(w|th an assurance that CGI approva|
wou|d be forthcom|ng for such
appo|ntments).
It |s not c|ear why the CGI CLC was
|nterested |n se|ect|on of a spec|f|c ent|ty
as sponsorsh|p consu|tant, rather than |n
6
se|ect|on of |nd|v|dua| sponsors .
6
wbo coolJ bove llokoqes/ coofllcts wltb tbe btooJ lmoqe
of tbe cCl/ cw Comes os well os wltb ooy pte-exlstloq
cCl spoosots, lf ooy
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
We found LhaL Lhe engagemenL of SMAM as
Lhe consulLanL for sponsorshlp and
merchandlslng/ llcenslng rlghLs was flawed
on several oLher counLs, as well:
1he pre-condlLlons for selecLlon as
sponsorshlp and merchandlslng/
llcenslng consulLanL were resLrlcLlve (by
requlrlng experlence of lnLernaLlonal
mulLl-sporLs evenLs) and dld noL facLor
ln Lhe speclflc requlremenLs of a sporLs
evenL belng organlsed ln lndla, whlch
requlred experlence and undersLandlng
of Lhe local markeL. 1he vasL poLenLlal of
Lhe lndlan markeL (whlch had been
Lapped for sporLlng evenLs llke Lhe lL
LournamenLs) was, Lhus, lgnored, and no
acLlve aLLempLs were made by Lhe CC Lo
encourage parLlclpaLlon by leadlng
players ln Lhe lndlan sporLlng
sponsorshlp arena. Whlle SMAM
clalmed Lo have a Lle-up wlLh an lndlan
parLner (World SporLs Croup), full
deLalls of acLlve parLlclpaLlon by Lhe
lndlan parLner ln sponsorshlp acLlvlLles
were noL made avallable Lo us by Lhe
CC.
CC's llnkages wlLh SMAM could be
Lraced back Lo AugusL 2003, when lL
provlded Lhe flrsL revenue esLlmaLes for
Lhe lCA whlch were used Lo assure Lhe
CablneL of Lhe robusLness of Lhe
revenue pro[ecLlons.
1he award of Lhe sponsorshlp and
merchandlslng/ llcenslng consulLancy
conLracLs Lo SMAM was essenLlally on
conslderaLlon of a slngle valld flnanclal
bld. uue Lo lnsufflclenL publlclLy and non
adherence Lo global Lenderlng
procedure, only Lwo blds were recelved.
Cf Lhe Lwo blds recelved, Lhe oLher
bldder (Lelsure SporLs ManagemenL
7
rlvaLe LlmlLed) dld noL appear for Lhe
presenLaLlon and suggesLed (by fax) LhaL
Lhey be appolnLed prlnclpal agenLs on
muLually agreed Lerms, Lhls bld was noL
pursued subsequenLly.
AlLhough conLracL negoLlaLlons were
conducLed wlLh SMAM, AusLralla and
Lhe consulLancy servlces were
essenLlally provlded by SMAM, AusLralla,
Lhe CC slgned Lhe conLracL wlLh SMAM,
Slngapore (a newly esLabllshed
company, whlch was purporLedly seL up
as an Sv Lo save Laxes). uue Lo Lhls
change, lL mlghL noL be posslble Lo
ascerLaln Lhe ulLlmaLe beneflclarles of
Lhe paymenLs made by Lhe CC Lo
SMAM.
lurLher, we found LhaL Lhe conLracLual
provlslons wlLh SMAM were deflclenL,
unduly favourlng SMAM e.g.
no penal clauses desplLe flnanclal advlce
Lo Lhe conLrary,
a lower Lax llablllLy of only 10.34 per
cenL for SMAM agalnsL Lhe expecLed
42.23 per cenL,
commlsslon payable Lo SMAM (and aL
8
Lhe same raLes) even on sponsorshlp
from Sus and CovernmenL agencles
(where Lhe role of SMAM was llkely Lo
9
be lnslgnlflcanL or unlmporLanL) ,
low conLracLed LargeLs for sponsorshlp
generaLlon vls-a-vls Lhe LargeLs lndlcaLed
ln Lhe revenue surplus/ neuLral" CC
budgeLs,
7
8
9
wbo boJ pooteJ lesset commlssloo fot l5u spoosotsblp,
wblle 5MAM boJ offeteJ o oolfotm tote of commlssloo
octoss oll Jeols
kooqloq ftom 15 -22.5 pet ceot qtoJeJ oo slobs.
ultlmotely, oot of tbe coottocteJ teveooe of ks. J75.16
ctote, ks. 250 ctote wos ftom Covetomeot oqeocles,
wblcb wos lotqely Joe to effotts by tbe Oc ooJ tbe
Covetomeot, totbet tboo by 5MAM.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC, raLher Lhan SMAM, belng made

responslble for provldlng an effecLlve
brand pro[ecLlon programme, lncludlng
Lhe developmenL and managemenL of
CWC-2010 lnLellecLual properLy
proLecLlon and anLl-ambush
programme", and
annual performance revlews (raLher
Lhan Lhe normal slx monLhly
performance revlews).
We found LhaL Lhe clauses of even Lhls
deflclenL conLracL were noL adhered Lo
durlng execuLlon:
SMAM dld noL depuLe Lhe mlnlmum
sLlpulaLed nlne execuLlves on a full-Llme
basls ln Lhe beglnnlng,
Annual performance revlews were noL
conducLed durlng 2008 and 2009, and
1he sLlpulaLed publlc llablllLy lnsurance of
uS$ 10 mllllon was noL provlded by SMAM.
S|gn|f|cant|y, Shr| M|ke nooper, CLC, CGI
refused to be a member of the rev|ew
comm|ttee, |nd|cat|ng that th|s was a
procedura| matter covered by the
contract between the CC and SMAM
and not one that shou|d |nvo|ve CGI.
1h|s was |n comp|ete contrast to the
stance taken |n 2006, when Shr| nooper
strong|y recommended appo|ntment of
SMAM and |nd|cated that CGI approva|
wou|d be forthcom|ng for such an
appo|ntment.
10
we coolJ oot floJ Jocomeototloo of fotmol teveooe
totqets fot cC-2008, looe, bowevet, tbete wete
loJlcotloos tbot cC-2008, looe woolJ be teveooe-
oeottol.
8.4.2 1erm|nat|on of contract w|th SMAM
|n August 2010
SMAM's performance was revlewed for Lhe
flrsL Llme only ln lebruary 2010, when a
commlLLee headed by Lhe SC underLook Lhls
exerclse. 1he commlLLee recommended LhaL
no commlsslon be pald on sponsorshlps
from Sus and also recommended
renegoLlaLlon of Lerms wlLh SMAM (on Lhe
lssue of lnadequaLe sLafflng as well as Lhe
burden of Lax llablllLy). 1he Lerms were
renegoLlaLed wlLh SMAM Lhrough a
varlaLlon deed of 7 !uly 2010.
8.4.3 Generat|on of Sponsorsh|p
kevenues
8.4.3.1 Sponsorshlp revenues from
C?C-2008, une and Cueen's
8aLon 8elay (C88)
We found LhaL Lhe performance of CC and
lLs consulLanL (SMAM) ln plannlng,
developlng and ulLlmaLely generaLlng
sponsorshlp revenue was a compleLe
fallure.
1he CC had separaLely conLracLed wlLh
SMAM as sponsorshlp consulLanL for C?C-
2008, une. SMAM's performance was very
poor. AgalnsL Lhe requlremenL of 8s. 60
crore for maklng C?C-2008, une revenue-
10
neuLral , Lhe revenue generaLed was [usL
8s. 20.17 crore, ouL of whlch Su/
CovernmenL sponsorshlp was 8s. 18 crore.
SMAM was pald 8s. 3.38 crore on Lhls
accounL, and Lhe CC also underLook Lo bear
Lhe Lax llablllLy of 8s 1.03 crore on behalf of
SMAM.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
SMAM was responslble for sponsorshlp
generaLlon from C88 - boLh Lhe C88 launch
ceremony and Lhe lnLernaLlonal leg.
Powever, agalnsL Lhe LargeL of 8s. 63 crore,
no sponsorshlp revenue was generaLed.
CC chose noL Lo derlve any lessons from Lhe
poor performance of SMAM durlng C?C-
2008 and Lhe C88-2009. SMAM's
performance on merchandlslng and
llcenslng rlghLs was even worse.
ulLlmaLely, CC LermlnaLed Lhe conLracL wlLh
SMAM only ln AugusL 2010, whlch was Loo
laLe.
We found LhaL Lhese changes were arblLrary
and were noL supporLed by subsLanLlaLed
[usLlflcaLlon or developmenLs on Lhe ground.
8.4.S Sponsorsh|p offers |gnored
8.4.4 Irequent changes |n sponsorsh|p
p|ans
1he plannlng for sponsorshlp was delayed,
ad hoc and erraLlc. Whlle sale of
sponsorshlp rlghLs was scheduled Lo
commence from november 2007, even Lhe
flrsL sponsorshlp markeLlng plan was
prepared by SMAM only ln uecember 2007.
lurLher, Lhere were frequenL and
unexplalned changes Lo Lhls plan, beLween
March and !uly 2009, whlch was revlsed
Lhrlce, as summarlsed below:
Assoc|at|on Status
Lead artner
artner
Sponsors
Co-sponsors
Supp||ers
1ota|
4
6
20
nll
36
400
270
220
nll
70
960
2
12
24
nll
36
200
600
240
nll
90
1130
2
10
12
24
36
200
300
300
240
108
1348
No of
targeted
compan|es
|an of 31
March 2009
1ota|
(ks.|n crore)
No of
targeted
compan|es
|an of
6 May 2009
1ota|
(ks.|n crore)
No of
targeted
compan|es
|an of
S Iu|y 2009
1ota|
(ks.|n crore)
1oble 8.4 - cbooqes lo 5poosotsblp lloos betweeo Motcb ooJ Ioly 2009
In our study report (Iu|y 2009) on
preparedness for the Games, we had
expressed our concerns regard|ng de|ays
|n sponsorsh|p generat|on. At that t|me,
the CC had |nd|cated that the
sponsorsh|p dr|ve had s|owed due to
g|oba| s|owdown and genera| e|ect|ons,
and |nd|cated that the f|na|
negot|at|ons for sponsorsh|p were now
schedu|ed for the f|rst quarter of 2010.
We had recommended that steps for
generat|ng sponsorsh|p and other
revenue shou|d be exped|ted, as the
w|ndow of opportun|ty for |everag|ng
the Games was fast shr|nk|ng w|th the
passage of t|me.
nowever, our concerns were not
adequate|y addressed.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
ln !uly 2009, CC soughL sponsorshlp offers
Lhrough an adverLlsemenL Lo whlch 48
companles responded. SlgnlflcanL offers
11
were recelved from enLlLles such as AlrLel ,
ower Crld CorporaLlon of lndla, Wlpro, LC,
uabur and lco. Powever, CC's follow up of
Lhese offers was very lackadalslcal, desplLe
slgnlflcanL poLenLlal, and none of Lhese
offers flnally frucLlfled lnLo a sponsorshlp
commlLmenL.
CC showed cons|derab|y more |nterest
and enthus|asm |n |nf|at|ng sponsorsh|p
revenue pro[ect|ons to ma|nta|n the
c|a|m of revenue neutra||ty, than |n
actua||y deve|op|ng offers a|ready |n
hand, desp|te s|gn|f|cant potent|a| to
generate revenues. We wou|d presume
that CC's |ack of |nterest |n generat|ng
sponsorsh|p revenue was u|t|mate|y
based on the GoI comm|tment to
underwr|te the shortfa|| between costs
and revenues.
11
12
1be spoosotsblp offet ftom Alttel ls JesctlbeJ lo tbe cboptet oo 1elecommoolcotloos 5etvlces.
5MAM's coottoct speclfleJ o totqet of ooly ks. 450 ctote (u55 100 mlllloo)
8.4.6 Actua| Comm|tted] kea||sed
Sponsorsh|p revenues
AgalnsL Lhe budgeLed sponsorshlp revenue

12
(!uly 2008) of 8s. 960 crore , LoLal
commlLLed sponsorshlp revenue was only
8s. 373.16 crore. Cf Lhls amounL,
8s. 230 crore was from CovernmenL
agencles, and only 8s. 123.16 crore was
from Lhe prlvaLe secLor,
8s. 238.90 crore was ln cash, whlle 8s.
136.26 crore was ln Lhe form of value
ln klnd" (vlk).
A summary of Lhe maln sponsors ls glven
below:
1oble 8.5 - 8teokop of commltteJ 5poosotsblp keveooe
Government agenc|es]SUs r|vate Compan|es
A|r Ind|a
N1C
Centra| 8ank of Ind|a
Ind|an ka||ways
1ota|
Cash - ks. 190 Crore
VIk - ks. 60 Crore
Cash - ks. 49.90 Crore
VIk - ks. 76.26 Crore
nero nonda
Coca Co|a
Sw|ss 1|m|ng
Ag|||ty Log|st|cs
1ata Motors
keebok
Am|ty Un|vers|ty
1ota|
30.00
30.00
30.00
100.00
230.00
38.00
13.70
19.40
12.30
24.66
9.83
0.03
12S.16
Crgan|zat|on Amount (ks. In Crore) Crgan|zat|on Amount (ks. In Crore)
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Cf Lhe cash sponsorshlp of 8s 238.90 crore,
80 per cenL came from CovernmenL
Agencles/Sus. Cf Lhe vlk sponsorshlp of 8s
76.26 crore generaLed from prlvaLe
companles, 8s. 36.36 crore was provlded by
Swlss 1lmlng, 1aLa MoLors and AglllLy
13
LoglsLlcs (who were reclplenLs of conLracLs
for servlces from CC), Lhese were
essenLlally seL-offs"/ dlscounLs offered aL
Lhe Lenderlng sLage.
lurLher, free commerclal Llme worLh 8s. 20
crore on uoordarshan and free LlckeLs
worLh 8s. 3 crore were also provlded Lo Lhe
sponsors. lndlan 8allways, as a lead parLner,
also uLlllsed vlk of 8s. 2 crore offered Lo Lhe
CC by lnLernaLlonal 8lghL Polder
8roadcasLers.
lncldenLally, CC was able Lo accounL for
uLlllsaLlon of only 8s. 3 crore of vlk, wlLh
Lhe balance yeL Lo be calculaLed flnally by
Lhe concerned funcLlonal areas.
8esldes, CC has anoLher conLracLed
14
commlLmenL of 8s. 30 crore as a parL of
Lhe cosL of ralslng Lhe sponsorshlp revenue.
Pence Lhe neL commlLLed sponsorshlp
revenue on a neL basls ls only 8s. 343.16
crore, and Lhe neL reallsed sponsorshlp
revenue ls 8s. 184.42 crore. 1hls excludes
Lhe poLenLlal llablllLy on accounL of
commlsslon Lo SMAM and lncome Lax
1S
llablllLy Lhereon .
13
14
1S
5oppllets fot 1lmloq, 5cotloq ooJ kesolts (15k),
ttoospott ooJ loqlstlcs setvlces tespectlvely.
uoJet tbe Iolot Motketloq Aqteemeot, ks 25 ctotes wos
poyoble to lOA ooJ ks. 5 ctote CNc1u.
uoJet tbe spoosotsblp coosoltoocy oqteemeot, 5MAM's
locome tox lloblllty ls testtlcteJ to 10.J pet ceot, wltb
tbe bolooce botJeo to be botoe by tbe Oc.
8.4.7 8us|ness C|ub of Ind|a (8CI)
1he CC slgned an Mou wlLh Lhe
ConfederaLlon of lndlan lndusLrles (Cll) ln
AugusL 2006 and formed Lhe 8uslness Club
of lndla (8Cl), ln order Lo supporL markeLlng
efforLs for CWC-2010. Chalrman, CC was
Lhe Chalrman of Lhe 8Cl and Lhe resldenL,
Cll was lLs co-chalrman. uesplLe lncurrlng
expendlLure of 8s. 3.08 crore (8s. 0.43 crore
on road shows worldwlde, and dlscounL of
8s. 2.63 on LlckeLs for 8Cl members), no
revenue whaLsoever was generaLed Lhrough
Lhls club.
8.S Merchand|s|ng and
L|cens|ng
8.S.1 De|ay |n preparat|on of
merchand|s|ng and ||cens|ng p|an
Merchandlslng and llcenslng revenues were
Lo be generaLed Lhrough appolnLmenL of
llcensees, who could uLlllse Lhe CWC-2010
brand name and assoclaLed logos on
manufacLure and reLalllng/ dlsLrlbuLlon of
producLs ln dlfferenL producL caLegorles e.g.
accessorles, sporLswear and oLher cloLhlng,
bags, collecLables, home wares,
llfesLyle/luxury goods, sLaLlonery, Loys eLc.
Powever, Lhe preparaLlon of Lhe Llcenslng
and Merchandlslng lan was delayed by 20
monLhs (!une 2009 agalnsL Lhe LargeLed
daLe of CcLober 2007), whlch reduced Lhe
Llme avallable for Lenderlng and conLracLlng
procedures Lowards engagemenL of
llcensee(s), and Lhe consumer launch of Lhe
merchandlslng and llcenslng programmes.
ln keeplng wlLh Lhe wldespread paLLern
observed ln Lhe funcLlonlng of Lhe CC, no
reasons for delaylng Lhls plan Lo !une 2009
were dlscernable.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
16
lotetestloqly, l8l wos oppoloteJ lo Moy 2010 os tbe
spoosot of 1eom loJlo by tbe 8oJmlotoo Assoclotloo of
loJlo, wblcb ls beoJeJ by 5btl vk vetmo, uC, Oc.
17
18
Otbet teosoos wete Jlscooteot betweeo Oc ooJ l8l fot
occteJltotloo of l8l stoff, motketloq effotts by Oc,
coootetfelt metcbooJlsloq, JlscoooteJ tlckets ooJ
poymeot scbeJoles etc.
1be foll ptoJoct tooqe wos oot fotolsbeJ lo ooy of tbese
12 coteqotles.
8.S.3 Lxecut|on of Merchand|s|ng and
L|cens|ng rogramme
CC falled Lo slgn a Long lorm AgreemenL
wlLh 8L (prlmarlly due Lo delays ln
declslons on addlLlonal producL caLegorles
17
and sub-llcensees ), whlch would have
commlLLed 8L Lo a LoLal royalLy of 8s. 7.03
crore. ConsequenLly, CC could nelLher blnd
8L Lo lLs orlglnally offered royalLy of 8s
7.03 crore, nor an addlLlonal offer of 10 per
cenL flaL royalLy of sale value of addlLlonal
producL caLegorles wlLh a mlnlmum
guaranLee of 8s.2 crore. 8y AugusL 2010,
8L revlsed lLs offer downwards Lo 8s. 3.32
crore of royalLy, even Lhls has noL been
recelved, slnce 8L's cheques were
dlshonoured.
1he merchandlslng and llcenslng
programme was offlclally launched only on
2 SepLember 2010. 8L was Lo sell
merchandlse Lhrough lLs own ouLleLs, as
well as concesslon ouLleLs provlded by Lhe
CC aL venues. Powever, due Lo securlLy
reasons, only 3 ouL of Lhe 60 compeLlLlon
venue ouLleLs provlded by Lhe CC were
operaLlonal, and LhaL Loo only durlng Lhe
openlng ceremony.
8L could make arrangemenLs for
18
merchandlslng only 12 ouL of Lhe 18
producL caLegorles, ouL of whlch 7 were
sub-llcensed by 8L, who also engaged
valshall LnLerprlses as Lhe conLracLor for
managlng Lhelr concesslon ouLleLs. 1hls
belled Lhe flnanclal and reLalllng sLrengLhs
of 8L and lLs parenL company, CulL, based
on whlch lL was declared Lechnlcally ellglble.
lurLher, 8L also lssued sub-llcenses (wlLh
8.S.2 Appo|ntment of rem|er 8rands
L|m|ted as so|e ||censee for the
Games
1he process for appolnLmenL of offlclal
llcensee(s) was beseL by delays, wlLh one
round of processlng (underLaken beLween
november 2009 and lebruary 2010) belng
seL aslde due Lo non-approval of Lhe 8l by
CClC and a meagre response.
1he process of Lenderlng was re-lnlLlaLed
only ln lebruary 2010, wlLh Lhe conLracL
belng awarded ln May 2010 Lo remler
16
8rands LlmlLed (8L) . We found LhaL ouL of
Lhe 17 Lechnlcally quallfled bldders, 8L was
Lhe only bldder whlch dld noL quallfy on lLs
own sLrengLh and was consldered ellglble
on Lhe sLrengLh of lLs parenL company. lLs
lncluslon ln Lhe panel of Lechnlcally
quallfled bldders was [usLlfled by Lhe
Lechnlcal evaluaLlon commlLLee, based on
Lhe goodwlll" and flnanclal and reLall
sLrengLh of lLs parenL company, CompacL
ulsc lndla LlmlLed (CulL). lncldenLally, CulL
ls essenLlally an anlmaLlon company
engaged ln mulLl-medla and enLerLalnmenL
producLlon, and lL ls hard Lo [usLlfy LhaL lLs
reLall channels would sulL reLalllng of Cames
memorabllla.
lurLher, Lhe 8l speclfled separaLe
llcensees for 18 dlfferenL caLegorles, buL
8L was lrregularly appolnLed as a masLer
llcensee for all caLegorles on Lhe basls of lLs
offer of LoLal royalLy of 8s. 7.03 crore for all
caLegorles (whlch was noL as per Lhe 8l). lL
may be noLed LhaL ln Melbourne CWC-
2006, Lhe masLer llcensee concepL was noL
adopLed, and 39 offlclal llcensees were
appolnLed.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC's approval) for addlLlonal producL
caLegorles for Apollo 1yres and
vlghneshwara uevelopwell. An amounL of
8s. 1 crore payable by 8L for rlghLs granLed
Lo vlghneshwara uevelopwell ls sLlll
ouLsLandlng.
19
loclJeotolly, ltosot 8bototl qot jost ks. 55.29 ctote of
teveooes ftom telecostloq cwC-2010 ooJ olso JlJ oot
beoeflt sobstootlolly ftom tbls eveot.
8.6.2 Nat|ona| Domest|c 8roadcast k|ghts
AgalnsL Lhe pro[ecLed revenue of 8s. 110

crore from naLlonal broadcasL rlghLs, Lhe CC
19
generaLed [usL 8s. 24.70 crore . 1hls was on
accounL of abnormal delays by Lhe CC ln
flnallslng Lhe conLracL wlLh Lhe PosL
8roadcasLer, rasar 8haraLl (8):
uesplLe havlng declared 8 as Lhe PosL
8roadcasLer ln Lhe orlglnal bld of May
2003, CC formally communlcaLed Lhls
appolnLmenL Lo 8 only ln March 2007.
CC Look anoLher Lwo years Lo slgn Lhe
PosL 8roadcasLer Servlce AgreemenL
wlLh 8 ln May 2009.
1he formula for revenue sharlng for
domesLlc LelecasL as well as new medla
rlghLs (lnLerneL, SMS eLc.) was flnallsed
only ln !uly- SepLember 2010, and Lhe
agreemenL for broadcasL rlghLs beLween
CC and 8 was slgned on 23 SepLember
2010 ([usL 10 days before Lhe Cames),
leavlng no Llme for developlng, leL alone
lmplemenLlng, a [olnL markeLlng sLraLegy
for explolLlng of free commerclal Llme.
8.6.3 Appo|ntment for Internat|ona|
Consu|tant for 8roadcast|ng k|ghts
1he process for engagemenL of an
lnLernaLlonal consulLanL for lnLernaLlonal
broadcasLlng rlghLs commenced ln March
2006 (slmulLaneously wlLh Lhe engagemenL
of Lhe consulLanL for sponsorshlp,
merchandlslng and llcenslng) and resulLed
ln Lhe engagemenL of lasL 1rack LvenLs ln
March 2007, wlLh unexplalned delays
beLween !une 2006 (when presenLaLlons
were made) Lo Lhe slgnlng of Lhe conLracL.
As ln Lhe case of Lhe sponsorshlp consulLanL
8.6 8roadcast|ng kevenues
8.6.1 Cverv|ew
under Lhe PCC, CCl granLed Lo CC Lhe rlghL

Lo commerclally explolL 1v and radlo
broadcasL rlghLs, as well as lnLerneL rlghLs.
8roadcasLers fell lnLo Lwo caLegorles:
nost 8roadcaster (n8), who was
responslble for produclng and
dlsLrlbuLlng unblased" radlo and 1v
coverage of CWC-2010 and would also
generally obLaln Lhe naLlonal domesLlc
broadcasL rlghLs (aL commerclal Lerms Lo
be negoLlaLed wlLh Lhe CC), and
Internat|ona| k|ght no|der 8roadcasters
(kn8s), who would be awarded
broadcasL rlghLs for Lhelr reglon/
counLry on muLually negoLlaLed
commerclal Lerms.
CC's or|g|na| budget (March 2006)
env|saged broadcast|ng revenues of ks.
300 crore (w|thout a break-up between
domest|c and |nternat|ona| revenues).
1h|s was ra|sed to ks. 370 crore |n the
Iu|y 2008 budget - ks. 110 crore from
domest|c r|ghts, and ks. 260 crore from
|nternat|ona| r|ghts.
nowever, CC cou|d generate tota|
broadcast|ng revenue of [ust ks. 238.17
crore, wh|ch was substant|a||y |ower
than the revenue of ks. 2SS.28 crore
generated from the 1V r|ghts for
Me|bourne CWG-2006.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
20
1be otlqlool btooJcostloq teveooes estlmote of ks. J00 ctote JlJ oot bove o bteok-op betweeo ootloool ooJ lotetootloool
btooJcostloq teveooes, we bove wotkeJ oot o bteok-op, boseJ oo tbe totlo of ootloool ooJ lotetootloool btooJcostloq
teveooes lo tbe tevlseJ estlmote of ks. J70 ctote.
broadcasL rlghLs was 8s. 260 crore.
Powever, Lhe conLracLed LargeL revenue
seL for lasL 1rack LvenLs was [usL 8s. 120
crore. 1hls ensured LhaL shorLfall ln
revenue reallsaLlon could noL be
conLracLually aLLrlbuLed Lo Lhe poor
performance of Lhe consulLanL.
(SMAM), Lhe selecLlon by CC of lasL 1rack
LvenLs was flawed on several counLs:
1he selecLlon was unduly lnfluenced by
Lhe recommendaLlons of Lhe CCl CLC,
Shrl Mlke Pooper, who clearly suggesLed
a neaL dlvlslon of consulLancy conLracLs
for sponsorshlp and merchandlslng and
llcenslng as well as broadcasLlng rlghLs
beLween SMAM and lasL 1rack LvenLs,
and recommended LhaL L8 may approve
appolnLmenL of SMAM and lasL 1rack
LvenLs respecLlvely for Lhe sponsorshlp/
markeLlng/ llcenslng and broadcasLlng
consulLancy conLracLs (for whlch declslon
CCl approval would be forLhcomlng as
per Shrl lennell's assurance).
SMAM, whlch was Lhe L-1 bldder for Lhe
lnLernaLlonal broadcasLlng rlghLs
consulLancy, had quoLed a flaL raLe of
commlsslon of 12.3 per cenL, whlle lasL
1rack LvenLs, whlch was Lhe L-2 bldder,
had quoLed a hlgher commlsslon raLe of
13 per cenL. Powever, conLrary Lo CvC
guldellnes and besL procuremenL
pracLlces, CC lrregularly conducLed
flnanclal negoLlaLlons wlLh Lhe L-2
bldder, lasL 1rack LvenLs, and concluded
Lhe conLracL wlLh lL. Colng by Lhe
dlfference beLween commlsslon raLes
offered by Lhe L-1 and L-2 bldders, Lhe
excess cosL Lo Lhe CC (and ulLlmaLely Lo
Col) on accounL of commlsslons on
broadcasLlng revenue amounLed Lo 8s.
3.34 crore.
1he orlglnal esLlmaLe of broadcasLlng
revenues was 8s. 300 crore (whlch would
work ouL Lo roughly 8s. 210 crore from
20
lnLernaLlonal broadcasL rlghLs ), and Lhe
revlsed esLlmaLes for lnLernaLlonal
8.6.4 Internat|ona| 8roadcast k|ghts
As agalnsL Lhe revlsed revenue esLlmaLes of

8s. 260 crore, CC could slgn agreemenLs for
only 8s. 213.46 crore. As of !anuary 2011,
Lhe amounL of revenues acLually remlLLed
was 8s. 191.40 crore (lncludlng vlk of 8s. 16
crore).
We could noL derlve assurance LhaL hlghesL
posslble value was obLalned from Lhe sale
of lnLernaLlonal broadcasLlng rlghLs and
selecLlon of 8P8s.
uocumenLs relaLed Lo Lhe negoLlaLlons
by Lhe lnLernaLlonal consulLanL wlLh Lhe
broadcasLers were purporLedly noL
avallable wlLh Lhe CC. lurLher, CC had
no lndependenL mechanlsm Lo assess
Lhe reasonableness of Lhe rlghLs fees
offered by Lhe 8P8s, and wenL by Lhe
reporLs/ recommendaLlons of Lhe
consulLanLs.
lor one reglon (uk/ lreland), Lhe
acLually conLracLed revenues of 8s.
14.86 crore were less Lhan one-Lhlrd of
Lhe pro[ecLed esLlmaLes of 8s. 49.80
crore. 1he Chalrman, CC re[ecLed a
proposal for dlrecL negoLlaLlon wlLh 88C,
sLaLlng LhaL he had personally bargalned
wlLh 88C for hlgher fees whlch were noL
agreed Lo.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
21
keveooe ftom oew meJlo tlqbts ote expecteJ to be mote
tboo 15 pet ceot of totol teveooes fot tbe looJoo
Olymplcs 2012. 1be loJloo ltemlet leoqoe qove
sepotote tlqbts to votloos oqeocles fot llve covetoqe
socb os llve scteeoloq, 5M5/MM5 ooJ lvk tlqbts, teol
tlme moblle vlJeo cllps, oolloe ooJ moblle qomloq etc.
moblle Lelephony new medla rlghLs on a

non-excluslve basls Lo 8 ln SepLember
2010,
lnLerneL rlghLs (Llve SLreamlng) on
nomlnaLlon basls wlLhouL revenue
elemenL Lo 1lmes lnLerneL ln CcLober
2010, and
Llve SLreamlng of Cames on moblle Lo
Smlle of lndla on nomlnaLlon basls wlLh
a mlnlmum guaranLeed revenue of 8s. 3
lakh and revenue share of 33 percenL of
revenue accrued.
Moblle lnfoLalnmenL rlghLs on
nomlnaLlon basls Lo a kMC- Smlle lndla
consorLlum, wlLh a 10 per cenL revenue
share (sub[ecL Lo a guaranLee of 8s. 3
lakh), however, no revenues were
recelved Llll uecember 2010.
CC falled Lo recelve any revenue,
whaLsoever, from 8lg Screen and new
medla rlghLs ln domesLlc broadcasLlng for
CWC-2010.
8.7 8|g Screen and New Med|a
k|ghts
8.8 1|cket|ng
CC asslgned blg screen rlghLs only for non-
commerclal purposes Lo rasar 8haraLl ln
SepLember 2010, purporLedly as lL was
separaLely explorlng Lhe posslblllLy of
explolLlng Lhe commerclal blg screen rlghLs
wlLh a chaln of LheaLres. CC Look no acLlon
Llll 4 CcLober 2010, when lL permlLLed
ulglLal Slgnage neLworks LlmlLed (ln
response Lo lLs offer) Lo show lnformaLlon
and plcLures of Lhe Cames aL 1000 locaLlons
ln 22 clLles, wlLh a 30 per cenL share of
adverLlslng revenue. Powever, due Lo
pauclLy of Llme, no conLracL was slgned, and
Lhe agency lnformed CC LhaL lL could noL
generaLe any revenue.
Llkewlse, CC falled Lo explolL Lhe
commerclal poLenLlal of new medla rlghLs
(lnLerneL, sLreamlng vldeo e.g.
youLube.com, SMS and moblle Lelephony,
21
moblle 1v eLc.) Whlle lnLernaLlonal new
medla rlghLs were awarded Lo lnLernaLlonal
8P8s (along wlLh 1v and radlo and
broadcasL rlghLs), Lhere were confllcLs
beLween CC and 8 on domesLlc rlghLs.
llnally, CC granLed:
8.8.1 Cverv|ew
1lckeLlng represenLed Lhe Lhlrd-largesL
source of revenue poLenLlal for Lhe Cames.
8esldes revenue generaLlon, an effecLlve
LlckeLlng programme should also ensure
maxlmum aLLendance and generaLe
adequaLe specLaLor lnLeresL equlLable and
efflclenL avallablllLy and vendlng of LlckeLs,
and saLlsfy seaLlng requlremenLs of all cllenL
groups (lncludlng Lhe Cames lamlly,
sponsors eLc).
We found that CC fa||ed to exp|o|t the
markets for commerc|a| r|ghts for 8|g
Screens (|.e. screen|ng Commonwea|th
Games |n pub||c p|aces e.g. c|nema ha||s,
c|ubs etc) as we|| as new med|a r|ghts.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
22
23
loclJeotolly, tbe locombeocy of tbe post of uC, Oc boJ
cbooqeJ by tbls tlme.
wbo wos eotllet ossocloteJ wltb Motket llos
consulLanL on nomlnaLlon basls,
purporLedly on Lhe basls of hls pasL
experlence and CCl's recommendaLlon.
SubsequenLly, Lhe consulLanL abandoned
hls asslgnmenL ln !une 2010, due Lo lll
healLh. 1hereafLer, CC conLlnued Lo Lake
declslons on Lhe markeLlng of LlckeLs on
lLs own wlLhouL any experL advlce.
8.8.3 Appo|ntment of 1|cket|ng Agency
CC followed a slmllar sLop-sLarL process for

appolnLlng of Lhe LlckeLlng agency:
1wo LCls lssued ln March and !une 2009
were cancelled on accounL of a slngle
ellglble bld on each occaslon.
A Lhlrd 8l was lssued ln CcLober 2009,
afLer relaxlng Lhe quallfylng crlLerla on
experlence of lnLernaLlonal mulLl-sporLs
evenL. 1he work was flnally awarded ln
!anuary 2010 (agalnsL CcLober 2008 - a
delay of 14 monLhs) Lo a consorLlum of
l8C1C, 1lckeL ro and 8road vlslon aL a
cosL of 8s. 14.03 crore.
8.8.4 Market|ng of 1|ckets
1he LlckeL markeLlng plan, whlch was Lo be

flnallsed by !uly 2009 for CCl approval, was
prepared only ln Aprll 2010. 1he plan was
noL serlously lmplemenLed Llll SepLember
2010 (a monLh before Lhe Cames), when a
Cames Llme LlckeLlng campalgn was
conducLed aL a cosL of 8s. 6 crore. 1hls
lncluded:
Award of conLracLs for 8s. 0.81 crore for
producLlon of commerclals ln
SepLember - CcLober 2010 (however,
Lhere was no evldence of Lhelr acLual
producLlon and broadcasL),
8.8.2 Appo|ntment of 1|cket|ng
Consu|tant
CC followed a sLop-sLarL process for

appolnLlng a LlckeLlng consulLanL.
AfLer floaLlng an LCl ln March 2008 and
recommendlng MarkeL lus for
appolnLmenL, Lhe process was sLalled for
13 monLhs due Lo uC's oplnlon LhaL Lhls
was wlLhln Lhe scope of work of LkS.
CC approached LkS on 20 SepLember
2008 for preparaLlon of deLalled
LlckeLlng sLraLegy plan, LhereafLer, we
found no evldence of any conLrlbuLlon of
LkS ln Lhls area or follow up by CC wlLh
LkS ln Lhls regard.
22 23
ln SepLember 2009 , Shrl 8ruce Wllkle
was appolnLed as Lhe LlckeLlng
nowever, aga|nst the targeted revenue
of ks. 100 crore, the actua| revenue
generated was [ust ks. 39.17 crore, of
wh|ch on|y ks. 27.49 crore had been
rea||sed as of December 2010. After
sett|ng off costs of ks. 23.37 crore, the
net t|cket|ng revenue was [ust ks.1S.80
crore.
1h|s d|sma| performance was
attr|butab|e to a cr|t|ca||y de|ayed
appo|ntment of the t|cket|ng consu|tant
and the t|cket|ng agency, |nadequate
market|ng, |ow t|cket sa|es and spectator
attendance, and excess|ve d|str|but|on
of comp||mentary t|ckets (espec|a||y h|gh
va|ue t|ckets), paradox|ca||y coup|ed
w|th reports of non-ava||ab|||ty of
t|ckets.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1wo 1v adverLlslng plans for 8s. 2 crore,

Lhese were unprepared and unplanned
(e.g. lL dld noL speclfy Lhe commerclals
Lo be broadcasL ln Lhe work orders Lo
Lhe 1v channels, focussed on promoLlng
only Lwo sporLs - aquaLlcs and
gymnasLlcs - and LhaL Loo afLer 80 per
cenL of Lhe sesslons were over, and
commerclals for Lhe closlng ceremony
were LelecasL afLer closure of LlckeL
sales),
AdverLlsemenLs ln lnLernaLlonal channel
beLween 11 and 14 CcLober 2010, when
lL was hardly feaslble Lo promoLe
lnLernaLlonal LlckeL sales.
8.8.S oor 1|cket Sa|es
8.8.3.1 Cvervlew
As compared Lo Lhe prevlous Lwo Cames,
Lhe LlckeL sales for CWC-2010 were poor,
whlle Lhe percenLage of compllmenLary
LlckeLs was nearly Lhree Llmes LhaL of earller
Cames. 1here were also a large number of
unsold LlckeLs.
8.8.3.2 CompllmenLary 1lckeLs
Lxcess lssue of compllmenLary LlckeLs,
conLrary Lo Lhe CCl's no free LlckeL pollcy",
was a ma[or problem for CWC-2010. 1he CC
L8 prescrlbed cerLaln norms on 23
SepLember 2010 for lssue of compllmenLary
LlckeLs afLer conslderlng avallablllLy/ unsold
LlckeLs beLween 2-8 days before Lhe evenL/
ceremony (wlLh Lhe Chalrman auLhorlsed Lo
Lake flnal declslons). Powever, we found
LhaL CC had lnsLrucLed l8C1C on 23
SepLember 2010 lLself (l.e. well ln advance)
Lo prlnL 2 lakh compllmenLary LlckeLs
In br|ef, market|ng of t|ckets was not
taken up t||| September 2010, when a
campa|gn was |aunched at a cost of ks. 6
crore. 1h|s campa|gn was unp|anned and
unprepared, and resu|ted |n wastefu|
expend|ture.
1oble 8.6 - ltoflle of 1lcket soles fot cwC 2002, 2006, ooJ 2010
Manchester 2002 Me|bourne 2006 De|h| 2010
1|ckets ava||ab|e for revenue
seats
1ota| t|cket sa|es
(kevenue generat|on)
1|ckets d|str|buted
free-of charge
1ota| unso|d t|ckets
10.03
7.79
78
1.20
12
1.03
10
18.32
13.34
73
2.16
11
2.77
14
14.13
3.61
40
4.93
33
3.36
23
(Numbers |n Lakhs)
valulng 8s. 6 crore for sporLs sesslon evenLs.
lor Lhe openlng and closlng ceremonles,
AgalnsL 77860 revenue seaLs for 8s.
82.34 crore, CC lssued 22900
compllmenLary LlckeLs worLh 8s. 36.60
crore, one Lhlrd of whlch (7323 LlckeLs)
were hlgh denomlnaLlon LlckeLs of 8s.
30000 each.
ln addlLlon, 384 LlckeLs worLh 8s.3 crore
for Lhe ceremonles were sold aL 90 per
cenL dlscounL Lo Lhe 8uslness Club of

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
8.8.3.3 Plgh 1lckeL rlces
1he prlce range of 30 Llmes beLween Lhe
cheapesL and cosLllesL LlckeLs (8s. 730 Lo 8s.
30,000) for Lhe openlng and closlng
ceremonles was hlgher Lhan Lhe ranges of
3.9 Llmes (Auu 100 Lo 390) and 7.8 Llmes
(23 Lo 193) for Lhe Melbourne and
ManchesLer Cames. 1he need Lo lnflaLe
revenue pro[ecLlons (whlch were noL
achleved) may have been a reason for Lhls
wlde prlce range.
8.8.3.4 l8C1C ouLleLs noL seL up
8.8.3.3 Low aLLendance
Low LlckeL sales was compounded by Lhe
Chalrman, CC's llloglcal declslon of Aprll
2010 LhaL only sponsors' cenLres, locaLlons
and showrooms would be used for reLalllng
LlckeLs (desplLe Lhe absence of any such
condlLlons ln Lhe sponsorshlp
24
agreemenLs ). 1hls was conLrary Lo Lhe
LlckeLlng agreemenL wlLh Lhe l8C1C
consorLlum. ulLlmaLely, [usL 1 ouLleL of
2S
l8C1C and 41 ouLleLs Lhrough sponsors and
CC's venue caLerer were opened ln uelhl/
nC8, no ouLleLs were opened ln Lhe oLher
meLros/non-meLro locaLlons. 1he reasons
offered by CC for noL permlLLlng l8C1C
ouLleLs - LhaL Lhese ouLleLs were noL
approachable and accesslble Lo Lhe general
publlc and also had securlLy problems - are
compleLely unLenable, and also resulLed ln
lnfrucLuous paymenL of 8s. 2 crore Lo l8C1C,
wlLhouL avalllng of Lhelr servlces.
Cn Lop of poor LlckeL sales, only 63 per cenL
(6.87 lakh) of pald and compllmenLary LlckeL
holders (10.36 lakh) Lurned up for Lhe
ceremonles / evenLs (as per LClL's LurnsLlle
lndla", whlch generaLed no sponsorshlp
revenue whaLsoever (as broughL ouL ln
para 9.4.6).
Llkewlse for Lhe sporLs evenLs, agalnsL 13.33
lakh LlckeLs, 3 lakh compllmenLary LlckeLs
valulng 8s. 13 crore were lssued.
We found no evldence of a pollcy for free/
dlscounLed LlckeLs for school chlldren,
college sLudenLs and oLher LargeL groups,
whlch would have had poLenLlal for
promoLlng sporLs awareness.
In our v|ew, th|s w|de range of t|cket
pr|c|ng, wh|ch was contrary to the
recommendat|ons of consu|tants, not
on|y contr|buted to the |ow t|cket sa|es
(espec|a||y for h|gher denom|nat|ons),
but a|so fac|||tated |ssue of |arge
quant|t|es of comp||mentary t|ckets
(purported|y on account of unso|d
stock).
It |s not known on what bas|s or on
whose author|ty such a |arge number
of comp||mentary t|ckets were
d|str|buted. Such f|agrant patronage at
the expense of Government funds
needs to be |nvest|gated as a deterrent
for such |nd|scret|onary acts |n future.
Accountab|||ty shou|d be f|xed, and
where poss|b|e, amounts shou|d be
recovered.
24
2S
xcept lo tbe coottoct wltb ceottol 8ook of loJlo
neto nooJo-6, ceottol 8ook of loJlo-20, 1oto motots-1,
lost ttox-1J, uelbl boot -1
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
daLa reporLs), Lhls could have been caused
by poor aLLendance by compllmenLary LlckeL
holders. ConLrarlly, Lhere was subsLanLlal
Lrafflc on Lhe LlckeLlng webslLe, wlLh 40.36
26
lakh hlLs" beLween 4 and 14 CcLober
2010, Lhere were also medla reporLs LhaL
people wllllng Lo buy LlckeLs for evenLs
(especlally for lower prlced LlckeLs) were
unable Lo do so, as Lhe webslLe lndlcaLed
LhaL LlckeLs had been sold ouL.
was made for sponsorshlp and
donaLlons Lhrough Sus and Lhe
corporaLe secLor. Lven an offer of 8s. 3
27
crore made by an lndusLrlallsL dld noL
frucLlfy for lack of follow-up by Lhe CC.
28
CC seL a LargeL of 8s. 120 crore for
generaLlng revenue Lhrough a raffle and
made cursory efforLs, by approachlng
Lhe Mlzoram CovernmenL for conducL of
onllne and paper loLLery. 1he Mlzoram
CovernmenL selecLed a sole dlsLrlbuLor
for 24 monLhs wlLh mlnlmum pro[ecLed
revenue of 8s. 203.86 crore (Lo be
shared wlLh lL). 1hls pro[ecLed revenue
was obvlously oversLaLed, opLlmlsLlc and
arblLrary, as 97 per cenL of Lhe revenue
was pro[ecLed from non-loLLery playlng
sLaLes. All loLLery operaLlons ln Mlzoram
were suspended ln March 2010
pursuanL Lo a CourL order. CuL of Lhe
reporLed revenue generaLlon of 8s. 0.36
crore, CC had recelved 8s. 0.24 crore as
of uecember 2010. no deLalls of sLaLe-
wlse revenue and revenue reallsed were
avallable wlLh Lhe CC.
8.9 Donat|on] kaff|e

CC lncluded a revenue LargeL from
donaLlons of 8s. 300 crore ln lLs revlsed
revenue budgeL (!uly 2008). As has been
sLaLed earller, ln our vlew, Lhls was done
solely Lo malnLaln Lhe clalm of revenue
neuLrallLy. 1hls was conflrmed by Lhe facL
LhaL as agalnsL Lhls LargeL, CC collecLed
palLry sums of 8s. 0.73 crore from donaLlons
and 8s. 0.24 crore from raffle.
CC made mlnlmal efforL for collecLlng
donaLlons. 1he only evldence of Lhese
efforLs was a meeLlng wlLh Lhe MlnlsLer
for CorporaLe Affalrs where a requesL
26
27
28
l.e. vlslts to tbe webslte
5btl kobol 8ojoj
ltojecteJ by tost & oooq fot tbe tevollJoteJ boJqet
C
n
A
1
L
k
Games |ann|ng Consu|tancy
and Cver|ays
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
9
vent know/edqe 5ervices {k5) wos oworded five consu/toncy controcts re/otinq to venue
opproiso// briefs, project monitorinq, qomes p/onninq ond workforce {oworded to on k5
consortium) durinq 2005-08. 1hree of these controcts were oworded on nominotion bosis,
foci/itoted by stronq potronoqe from the c6l {with which k5 hod o c/ose /ink), tenderinq
conditions for the other two controcts were toi/ored to suit k5. we ore o/so unob/e to
verify the need for this mu/tip/icity of controcts, ond the possib/e over/op between the
de/iverob/es from different controcts.
venue over/oys ore temporory foci/ities ot vorious venues provided durinq the operotiono/
phose of the 6omes. P/onninq ond scopinq for over/oys wos critico//y de/oyed by the Oc
ond comp/eted on/y in lune 2009, ofter which the responsibi/ity for procurement of
over/oys items wos tronsferred from the venue owners to the Oc. 1he re/iobi/ity of the
over/oys requirements is o/so open to question, since there were huqe voriotions in
successive budqet estimotes between 5eptember 2009 ond lonuory 2010 ond there wos o
substontio/ curtoi/ment in the oworded quontities {in view of the ovoi/ob/e budqet
provision), which did not opporent/y offect the over/oys work.
1he procurement process fo//owed for oword of venue over/oys controcts wos hiqh/y
irrequ/or. Oc inexp/icob/y shifted from on item-wise bosis {fo//owed internotiono//y) to o
venue-c/uster opprooch, bosed on qeoqrophico/ /ocotions. 1his c/uster-bosed opprooch,
o/onq with toi/ored e/iqibi/ity criterio {enormous onnuo/ turnover requirements ond
stipu/oted experience of on/y O/ympics/ 4sion 6omes/ cw6), wos used to discouroqe
competition by restrictinq the number of vendors. 1hese criterio were then se/ective/y ond
inconsistent/y opp/ied to remove competitors, /eovinq o fie/d of just four "technico//y
quo/ified" consortiums - 54lv-u-4rt-lndo, Pico-ueepo/i, Nuss/i ond 6L-Meroform. 1he
commercio/ bids of o// four vendors were the /owest exoct/y for those c/usters, which were
their first ond second preferences. 5uch coincidence points to co//usion ond the possibi/ity
of corte/s omonq the vendors.
1he over/oys controcts were siqned ot exorbitont rotes, cousinq huqe finoncio/ /oss to the
Oc {ond the 6ol). 8osed on the ovoi/ob/e records, we connot fu//y quontify the true toto/
/oss. we hove, however, come up with indicotors of the finoncio/ /oss in different woys,
which qive on ideo of the exorbitont rotes chorqed for individuo/ over/oy items:
8y comporinq item wise rote ocross c/usters ond ocross vendors,
8y comporinq item wise rotes for the some vendor ocross different c/usters, ond
8y comporinq item wise rotes with other supportinq documents {e.q. rotes dec/ored to
customs, rotes chorqed by cPwu ond other oqencies.
ChapLer 9 - Cames lannlng ConsulLancy and Cverlays
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
conLracLs relaLed Lo CWC-2010 as
summarlsed below:
1here were serlous deflclencles relaLlng Lo
Lhe conLracL for pro[ecL schedullng revlew
and monlLorlng and dellvery revlew:
1he conLracL was poorly negoLlaLed, Lhe
flnal offer afLer negoLlaLlons was for Lhe
same amounL of uS$ 3.24 mllllon buL for
a shorLer perlod (uecember 2006 Lo
Cames Llme), whlch was elghL monLhs
shorLer Lhan Lhe orlglnal offer (Aprll
2006 Lo Lhe Cames Llme),
SubsequenLly CC cuL shorL Lhls conLracL
Llll Aprll 2010, purporLedly because lL
felL no furLher monlLorlng was necessary
(whlch ls lnexpllcable, slnce almosL all
Lhe venues were sLlll lncompleLe), and
ConsulLancy conLracL of Lhls naLure are
prlmarlly dependenL on deploymenL of
speclallsL manpower for speclfled
mandays. lor Lhe perlod from !une 2008
Lo March 2010, we noLlced deploymenL
of only 3 professlonals for a LoLal of 279
mandays. Lven assumlng Lhe hlghesL
LvenL knowledge Servlces (LkS), a

SwlLzerland-based organlsaLlon, was
lrregularly awarded mulLlple consulLancy
We found LhaL Lhe award of Lhese conLracLs
Lo LkS/ LkS ConsorLlum was non-
LransparenL and lrregular ln all cases. 1he
flrsL Lhree conLracLs were awarded on
nomlnaLlon basls. AlLhough Lhe oLher Lwo
conLracLs (Cames plannlng consulLancy and
workforce consulLancy) lnvolved Lenderlng,
Lhe Lenderlng condlLlons were Lallored Lo
sulL LkS.
9.1 Games |ann|ng Consu|tancy -
ko|e of Lvent know|edge Serv|ces (LkS)
1oble 9.1 - AwotJ of coosoltoocy coottocts to k5
Area When awarded Amount Crgan|sat|on
Venue appra|sa| study
Venue br|ef and preparat|on of s|te p|an
ro[ect Schedu||ng kev|ew and Mon|tor|ng
and De||very kev|ew
Games |ann|ng Consu|tancy (LkS- Lrnst &
oung Consort|um)
Workforce consu|tancy contract (LkS- Lrnst
& oung Consort|um)
!une 2003
!uly 2006
november 2006
March 2008
March 2008
8s. 0.49 crore
uS$ 1.16 mllllon
uS$ 3.24 mllllon
8s. 29.66 crore
8s. 22.36 crore
uuA
CC
LkS had a strong CGI ||nk, as |ts CLC, Mr.
Cra|g McLatchey, was a|so a member of
the CGI Co-ord|nat|on Comm|ss|on, who
was spec|f|ca||y entrusted w|th the
respons|b|||ty of mon|tor|ng CWG-2010
arrangements |n Ind|a. 1he
appo|ntment of LkS by CC was
fac|||tated by strong patronage from the
CGI, w|th c|ear statements d|scourag|ng
g|oba| tender|ng and adv|s|ng LkS
appo|ntment w|thout tender|ng, for
wh|ch CGI approva| wou|d be read||y
forthcom|ng.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1
Appllcoble fot cO, k5, Mt. ctolq Mclotcbey
We are also unable Lo ascerLaln or verlfy Lhe
need for Lhls mulLlpllclLy of conLracLs,
especlally Lhe Cames lannlng consulLancy
conLracL awarded ln March 2008, and Lhe
posslble overlap beLween Lhe dellverables
from dlfferenL conLracLs awarded Lo LkS/
LkS and L&?.
lurLher, from AugusL 2009 onwards, LkS
requesLed for fuLure CC paymenLs Lo be
made Lo a new company, LkS rlvaLe
LlmlLed ln MaurlLlus, paymenLs of 8s. 7
crore were made Lhrough Lhls rouLe. We are
unable Lo ascerLaln Lhe reasons as Lo why
CC acceded Lo Lhls unusual requesL,
parLlcularly because Lhe shareholdlng
paLLern of Lhls MaurlLlus company ls noL
Lraceable/ verlflable.
1
raLe of uS$ 2,000/ day , Lhe ellglble
paymenL for Lhls perlod works ouL Lo
[usL $0.36 mllllon, as agalnsL Lhe acLual
paymenL of uS$ 1.38 mllllon. 1hls
furLher conflrms LhaL Lhe conLracL was
awarded Lo LkS aL hlghly lnflaLed cosLs
on a nomlnaLlon basls, wlLhouL
adequaLe cosL [usLlflcaLlon.
AlLhough a Lenderlng process was allowed
for awardlng Lhe conLracL for Cames
lannlng consulLancy, Lhere were serlous
deflclencles:
1he pre-quallflcaLlon condlLlons were
Lallored Lo speclfy experlence of
Clymplcs/ CW Cames/ Aslan Cames ln
any capaclLy", raLher Lhan experlence
ln Lhe relevanL area". 1he LkS- L&?
consorLlum dld noL have experlence ln
Cames lannlng and ro[ecL
ManagemenL ConsulLancy,
1here was an unexplalned delay of
nearly four monLhs from Lhe recelpL of
Lhe C blds ln May 2007 Lo Lhelr
openlng ln SepLember 2007, and
1he recommendaLlon of Lhe CC
commerclal bld evaluaLlon commlLLee
(headed by uC) for a reducLlon ln Lhe
3430 mandays as agalnsL 3930 mandays
lndlcaLed by Lhe oLher bldder, whlch
would have resulLed ln savlngs of 8s.
11.69 crore, was noL glven effecL Lo,
prlmarlly because of CLC, CCl's
lnLervenLlon agalnsL such a reducLlon.
Speclflc deflclencles relaLlng Lo Lhe
workforce consulLancy conLracL are
dlscussed ln ChapLer 13.
9.2 Venue Cver|ays

9.2.1 Introduct|on
Cverlays are Lemporary faclllLles aL varlous
venues provlded durlng Lhe operaLlonal
phase of Lhe Cames. 1hese lnclude lLems
llke pre-fabrlcaLed sLrucLures, LenLs,
furnlLure and flxLures, back-up power (uC
SeLs/ uS), consumables eLc.
9.2.2 De|ays |n |ann|ng and Scop|ng
of over|ays
1he plannlng and scoplng of overlays
lnvolved Lhe llsLlng of lLems requlred,
quanLlLles and Lhelr speclflcaLlons on a
venue-wlse basls. 1hls work, whlch was
enLrusLed ln AugusL 2007 Lo Lhe CC by CoM,
was crlLlcally delayed by Lhe CC. uesplLe
CCl lndlcaLlng ln !uly 2008 LhaL overlays
was an area of concern, Lhe overlays
funcLlonal area ln Lhe CC was seL up only ln
lebruary/ March 2009 and Lhe overlays
scoplng was compleLed only ln !une 2009.
1he CC flnally forwarded Lhe 8lll of
Such huge var|at|ons |n budget
est|mates, even after scop|ng of over|ays
requ|rements, were |nd|cat|ve of
"e|ast|c|ty" |n the est|mat|ng procedures
and cast doubts on the|r re||ab|||ty.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
2
3
wltb oo oJJltloool ks. 5J.2J ctote fot 15k, oetwotk,
swltcbes etc. ooJ ks. 58.9 ctote fot lmoqe ooJ look.
veo Oc's boJqet estlmote of 5eptembet 2009 wos
coosttocteJ, boseJ oo ltem wlse totes.
polnL of Llme, Lhese overlays were
envlsaged Lo be provlded by Lhe venue
owners/ SAl.
AfLer Lhe Lransfer of responslblllLy for
procuremenL, Lhe CC submlLLed an overlays
budgeL esLlmaLe of 8s. 870.41 crore ln
SepLember 2009 Lo M?AS, lndlcaLlng LhaL
Lhls esLlmaLlon was based on lLem wlse
raLes obLalned from dlfferenL lnLernaLlonal
suppllers as well as lndlan
suppllers/manufacLurers, parLlally for
procuremenL and parLlally for hlrlng. 1hls
esLlmaLe was reduced by CC ln CcLober
2009 Lo 8s. 687.06 crore (lncludlng
conLlngencles of 8s. 40 crore). llnally, on
!anuary 2010, Lhe LlC approved an esLlmaLe
2
of 8s. 374.93 crore .
CuanLlLles (8CCs) and overlay requlremenLs
of lndlvldual venues only ln !uly 2009 Lo SAl
ln respecL of lLs venues. ln AugusL 2009, SAl
expressed lLs lack of Lechnlcal knowledge Lo
underLake procuremenL of overlay lLems.
ConsequenLly, Lhe responslblllLy for
procuremenL of overlay lLems was also
enLrusLed Lo Lhe CC.
1hese delays ln plannlng were compounded
by furLher delays ln Lhe procuremenL
process, leadlng Lo slgnlng of Lhe overlays
conLracLs only on 2 !une 2010.
1oble 9.2 - cbtoooloqy of eveots
telotloq to owotJ of veooe
ovetloys coottocts
9.2.3 8udget|ng for Cver|ays
1he esLlmaLed cosL of overlays, was noL
speclfled ln Lhe bld documenL (May 2003). lL
was sLaLed as 8s. 200 crore ln CoM meeLlng
(AugusL 2007) and was LenLaLlvely Laken Lo
8s 400 crore (!uly 2009), by LlC. AL Lhls
9.2.4 Unexp|a|nab|e sh|ft from |tem-w|se
contracts to 'c|uster' w|se contracts.
lnLernaLlonally, overlay conLracLs are
3
awarded on lLem-wlse basls . ConLrarlly, ln
AugusL 2009, uC CC sLaLed LhaL, ln a
meeLlng aLLended by Chalrman CC, lL was
declded LhaL overlays work would be
dlvlded lnLo dlfferenL clusLers, based on
geographlcal locaLlons. Powever, Shrl
Suresh kalmadl, ln hls separaLe reply (March
2011), denled LhaL Lhe declslon was Laken
by hlm.
Date Lvent
S December
2009
16 Ianuary 2010
1S ] 26
Iebruary 2010
March - Apr||
2010
2 Iune 2010
lssue of LCl wlLh lasL
daLe 6 !anuary 2010, 10
responses recelved and 4
vendors shorLllsLed
8ls lssued Lo 4 vendors
Cpenlng of Lechnlcal and
flnanclal/ sponsorshlp
blds of 4 vendors
1sL and 2nd round of
negoLlaLlons
Slgnlng of conLracLs wlLh
4 consorLla (lco-ueepall,
nussll, LSA!v-u'ArL-lndo,
and CL LvenLs-
Meroform)
In our op|n|on, th|s "c|uster-based
approach", a|ong w|th other restr|ct|ve
cond|t|ons, was used to d|scourage
compet|t|on by restr|ct|ng the number of
part|c|pat|ng vendors (due to the
e||g|b|ty cond|t|on of exorb|tant annua|
turnover on a "who|e of c|uster" bas|s,
rather than |tem-w|se bas|s, coup|ed
w|th an |n|t|a| st|pu|at|on of ho|d|ng of at
|east 80 per cent stock of d|verse over|ay
|tems). Compet|t|on was further
restr|cted to [ust four vendors (by
e||m|nat|ng two b|dders aga|nst the
recommendat|on of the eva|uat|on
comm|ttee) by |ncons|stent app||cat|on
of cr|ter|a, a|| four vendors bagged
over|ay contracts for one or more
c|usters. 1h|s c|uster-based approach
a|so gave amp|e scope to vendors to
quote exorb|tant rates for the same
|tems supp||ed at d|fferent venues.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
4
S
1bls clostet boseJ opptoocb" wos olso oseJ lo owotJ of
coottocts telotloq to cleooloq ooJ woste Moooqemeot,
lmoqe ooJ look . nowevet tbe composltloo of clostets lo
tbese coses wos oot lJeotlcol.
loclJeotolly, tbe l5c metely tecommeoJeJ cooslJetotloo
of o clostet-boseJ opptoocb omooqst otbet oltetootlves
to be exploteJ.
1he venues were Lhen dlvlded lnLo seven
4
clusLers , and Lender documenLs prepared
accordlngly.
CC's response LhaL Lhls approach was
adopLed as per Lhe llnance Sub
CommlLLee's suggesLlon ls lncorrecL, slnce
Lhe Lenders had already been floaLed on a
S
clusLer" basls before lSC approval .
9.2.S Improper L||g|b|||ty Cr|ter|a and
Lva|uat|on
We found LhaL Lhe ellglblllLy crlLerla were

Lallored Lo mlnlmlse compeLlLlon:
n|gh annua| turnover requ|rement - An
enormous annual Lurnover requlremenL
of 8s. 1073 crore was speclfled for
blddlng for all clusLers. 9 ouL of 10
vendors submlLLlng C blds (lncludlng
Lhree successful bldders - nussll, LSA !v,
and lco-ueepall - ouL of four) dld noL
quallfy. We could noL ascerLaln Lhe
raLlonale for Lhls arblLrary flgure, whlch
ls subsLanLlally hlgher Lhan boLh Lhe
budgeL esLlmaLed and Lhe LoLal conLracL
value.
kestr|ct|ve exper|ence cr|ter|a - 1he
pre-quallflcaLlon (C) crlLerla sLlpulaLed
experlence of provldlng aL leasL one
ma[or mulLl-sporL evenL (Clymplcs/
CWC/ Aslan Cames) and excluded oLher
evenLs of such scale, even Lhough Lhe
overlay requlremenLs (whlch are non-
sporLlng ln naLure) were noL slgnlflcanLly
dlfferenL. 1hls crlLerla resLrlcLed
parLlclpaLlon of slmllarly experlenced
lndlan and lnLernaLlonal vendors.
lurLher, Lhls crlLerla was, ln our oplnlon,
lmpracLlcal, slnce a clusLer-based
overlays approach was noL sLandard
lnLernaLlonal pracLlce, and experlence of
provldlng lndlvldual overlay lLems would
noL be relevanL.
Inc|us|on and subsequent de|et|on of
cond|t|on of ho|d|ng 80 per cent stock -
1he LCl of 3 uecember 2009 sLlpulaLed
cerLlflcaLlon of 80 per cenL holdlng of
Lhe sLock (of dlverse overlay lLems) by
Lhe bldders, Lhls condlLlon was deleLed
on 19 uecember 2009 wlLh Lhe lnLenLlon
of lncorporaLlon aL Lhe 8l sLage (whlch
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
6
7
veo tbe bolooce sbeet sopplleJ (ooJ potpotteJly exomloeJ by Oc), os well os tbe solveocy cettlflcote, pettoloeJ to tbe llco
Ctoop of compooles ooJ oot to tbe loJlvlJool compooy (llco nooqkooq llmlteJ).
stoteJ to be wltb cO's vetbol opptovol
embassles) was noL followed, whlch helped
Lo llmlL compeLlLlon for such huge lLems of
work.
lurLher, Lhese crlLerla were selecLlvely
applled Lo resLrlcL compeLlLlon furLher:
was noL done). Cnly one of Lhe
successful bldders (CL Meroform) would
have meL Lhls condlLlon.
ln addlLlon, global Lenderlng (by clrculaLlon
Lhrough Lhe lndlan 1rade !ournal and lndlan
1oble 9.J - 5electlve oppllcotloo of ellqlblllty ctltetlo
Cr|ter|a Instances of Se|ect|ve App||cat|on
Annua| 1urnover of
ks. 107S crore for
b|dd|ng for a|| c|usters
Lxper|ence of prov|d|ng
over|ays at one ma[or
mu|t|-sports event
nussll (wlLh an annual Lurnover of [usL 8s. 418 crore) was

lrregularly allowed, aL uC's lnsLance, Lo bld for all clusLers, and
dld noL submlL a solvency cerLlflcaLe
lco was allowed Lo bld for all clusLers on Lhe basls of self-
cerLlflcaLlon of annual Lurnover (lnsLead of adopLlng flgures from
6
Lhe annual audlLed accounLs )
1he cerLlflcaLes of Lhree successful bldders were deflclenL, buL
were accepLed:
nussll was allowed Lo bld, based on lLs experlence of [usL
provldlng a Crand SLand for Lhe 2006 uoha Aslan Cames
(whlch was noL comparable Lo Lhe scope of Lhls overlays
conLracL)
1he cerLlflcaLe submlLLed by lco for Lhe 8el[lng Clymplcs
2008 dld noL speclfy Lhe naLure of work
CL Meroform's cerLlflcaLe for uoha Aslan Cames 2006 was
for sponsorshlp for hosplLallLy servlce, whlle lLs cerLlflcaLe for
8el[lng Clymplcs 2008 was from Lhe Pong kong !ockey Club
(and noL Lhe 8el[lng Clymplcs CC).
8y conLrasL, a slmllar approach was noL adopLed for Lwo oLher
bldders:
1he experlence cerLlflcaLe of ClLyneon from Lhe uoha Aslan
Cames 2006 CC was found Lo be lnsufflclenL, wlLhouL a
speclflc [usLlflcaLlon,
unlplan was noL consldered, as lL could noL furnlsh a
cerLlflcaLe from a (now defuncL) 8el[lng Clymplcs CC.
1he CC Lva|uat|on Comm|ttee recommended cons|derat|on of s|x
vendors for |ssue of kI (|nc|ud|ng C|tyneon and Un|p|an), but th|s
7
was turned down by DG .
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
9.2.6 Nexus, Carte||sat|on and suspected
|eak|ng of |nformat|on
Cur scruLlny shows LhaL Lwo of Lhe

successful bldders were aware of Lhe
condlLlons of Lhe LCl, even before lLs
publlcaLlon on 3 uecember 2009:
nussll enLered lnLo a consorLlum
agreemenL wlLh ComforL neL 1raders
lndla vL. LLd. and also wlLh Mlnaean
PablLaL (lndla) vL. LLd orlglnally on 1S
November 2009 for exacLly Lhe same
scope of work as lndlcaLed ln Lhe LCl.
Whlle Lhe consorLlum agreemenL of LSC
Arena Croup !olnL venLure LLd (LSA!v):
u-ArL: lndo ConsorLlum was recorded Lo
have been consLlLuLed on 29 uecember
2009, LSA!v wroLe Lo Lhe CC on 1
uecember 2009 LhaL Lhey had already
formed a consorLlum wlLh Lhelr lndlan
parLners exacLly for Lhe same scope of
work.
9.2.7 G|oba| Compan|es mere|y act|ng as
Iront
1he need Lo lnvolve experlenced global
companles along wlLh lndlan parLners for
provlslonlng of overlays was repeaLedly
reflecLed durlng Lhe process for overlays
8
plannlng . 1he parLlclpaLlon of lndlan (and
forelgn) vendors had already been
resLrlcLed Lhrough varlous clauses. We,
however, found LhaL ln Lhe cases of Lhe
successful bldders, Lhe respecLlve global
companles were merely acLlng as a fronL, Lo
enable pre-quallflcaLlon ellglblllLy and
award of conLracL, and noL for work
execuLlon.
1he LCl sLlpulaLed LhaL the turnover ond
the experience of {on/y) the /eod portner of
the consortium wou/d be counted for pre-
quo/ificotion e/iqibi/ity. We, however, found
LhaL Lhe deflned lead parLners for Lhe LSA!v
consorLlum and Lhe CL Meroform
consorLlum - LSA!v and CL - had only 1 per
cenL and 0 per cenL shareholdlng
9
respecLlvely ln Lhe [olnL venLure companles
formed for execuLlng Lhe overlay conLracLs,
Lhelr conLrlbuLlon would Lherefore have
been lnslgnlflcanL. Powever, Lhe role and
conLrlbuLlon of Lhe lead parLner ln
execuLlon of overlay conLracLs was noL
verlfled and ensured by CC, by requlrlng
submlsslon of necessary legally blndlng
documenLs.
1he four vendors were requ|red to
subm|t the|r order of preference for
award of contracts for the seven
d|fferent c|usters. We found that the
commerc|a| b|ds of a|| the four vendors
were the |owest exact|y for those
c|usters, wh|ch were the|r f|rst and
second preferences. Such co|nc|dence
and prec|s|on of est|mates, rare|y seen |n
pract|ce, po|nts to co||us|on and
poss|b|||ty of carte|s among the vendors.
lurLher evldence of Lhe exlsLence of carLel
was noLlced, when we found LhaL lco had
sub-conLracLed publlc dlsplay sysLems (a
slgnlflcanL overlay lLem) Lo MlC LlecLronlc
LlmlLed for all 17 venues, alLhough lL was
enLrusLed wlLh overlays for only 6 venues.
8
9
lo tbe lc mlootes ooJ Oc's l5c Jellbetotloos
lo tbe cose of tbe Cl Metofotm coosottlom, poymeots
wete moJe to o compooy oomeJ Cl lltmos veots
ltlvote ltJ. (wltb 0 pet ceot sbotebolJloq of tbe leoJ
pottoet", bowevet, tbe oqteemeot wos slqoeJ wltb
oootbet compooy Cl veots - Metofotm coosottlom /
cC 2010".
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
3.3 per cenL obLalned ln Lhe second round
was noL maLerlal, as Lhe dlscounLs were
offered on lLems (e.g. flxed flood llghLlng
poles, Lreadmllls, cross Lralners by CL) for
whlch quanLlLles had been reduced
drasLlcally. ConLracLs were slgned wlLh Lhe
four bldders as follows:
9.2.8 Award of Contracts
1he quoLed prlces of Lhe four bldders ln
respecL of Lhelr chosen" clusLers amounLed
Lo a LoLal of 8s. 1276 crores, consequenLly,
Lwo rounds of negoLlaLlons were held wlLh
Lhe four bldders ln respecL of Lhelr chosen
clusLers. 1here was a reducLlon of 3.6 per
cenL ln Lhe flrsL round, Lhe reducLlon" of
9.2.9 Lxorb|tant rates of Cver|ays
1oble 9.4 - AwotJ of veooe Ovetloys coottocts
We found LhaL Lhe CC reduced Lhe conLracL
value from 8s 1276 crore Lo 8s 630 crore,
(whlch was sLlll hlgher Lhan Lhe budgeL
provlslon of 8s.374 crore) malnly by
curLallmenL of quanLlLles ln each of Lhe
clusLers, whlch ranged ln aggregaLe from
27.4 percenL Lo 37.6 per cenL. Slnce Lhls
drasLlc reducLlon does noL seem Lo have
affecLed Lhe overlays work laLer on, lL
appears LhaL Lhe quanLlLles were
subsLanLlally lnflaLed aL Lhe Llme of scoplng
and Lenderlng. ln response, Lhe CC sLaLed
LhaL Lhey had noL reduced Lhe quanLlLles of
mandaLory overlays lLems. 1hls begs Lhe
quesLlon of a dlsLlncLlon beLween purporLed
mandaLory" and non-mandaLory"
overlays, whlch was never envlsaged or
menLloned aL Lhe Llme of scoplng or budgeL
esLlmaLlon.
Lven afLer four monLhs of Lhe Cames, CC
could noL produce Lhe flnal blll of quanLlLy
for lLems acLually supplled, for our scruLlny.
We, Lherefore, do noL know whaL overlay
lLems were acLually dellvered, wheLher
Lhese were acLually requlred/ used, whaL
Name of the vendor C|usters Contract Amount
|co Deepa||
Nuss||
LSAIV,D:Art, Indo Consort|um
GL Lvents
l & vl
ll & lv
v
lll & vll
209
128
84
130
(ks. |n Crore)
wlll be bllled for, and how much flnanclal
loss Col wlll ulLlmaLely suffer.
In our v|ew, the over|ays contracts were
s|gned at exorb|tant rates, caus|ng huge
f|nanc|a| |oss to the CC (and the GoI).
8ased on the ava||ab|e records, we
cannot fu||y quant|fy the true tota|
f|nanc|a| |oss. We have, however, tr|ed
to come up w|th |nd|cators of the
f|nanc|a| |oss |n severa| ways, wh|ch g|ve
an |dea of the exorb|tant rates charged
for |nd|v|dua| over|ay |tems:
8y compar|ng |tem w|se rate across
c|usters and across vendors
8y compar|ng |tem w|se rates for the
same vendor across d|fferent c|usters
8y compar|ng |tem w|se rates w|th
other support|ng documents (e.g.
rates dec|ared to Customs, rates
charged by CWD and other agenc|es.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
lL may be noLed LhaL Lhere would be
lnsLances of overlap beLween Lhese Lhree
klnds of comparlsons and Lhe losses
quanLlfled Lhrough Lhese comparlsons
cannoL be aggregaLed.
We have compared Lhe lLem-wlse raLes
quoLed by Lhe four successful bldders for
dlfferenL clusLers, and calculaLed Lhe loss on
accounL of [usL Lhe dlfference vls-a-vls Lhe
mlnlmum raLes quoLed. 1hls (mlnlmum) loss
9.2.9.1 lnsLances of ulfferenL 8aLes across
vendors and across clusLers
1oble 9.5 - lostooces of wlJely votyloq totes fot ovetloys ltems
10
lot some ltems tbe poootlty qlveo lo tbe coottocts wos 'Nll' bot tlll Jote (Motcb 2011), flool 8llls of Ooootltles (8OO) ote oot
fltmeJ op ooJ ote oot sote wbetbet tbe octool poootlty olso temoloeJ 'Nll'.
works ouL Lo 8s. 199.37 crore (plus servlce
Lax of 8s. 20.33 crore).
We are unable Lo undersLand how CC falled
Lo negoLlaLe and obLaln aL leasL Lhls
mlnlmum reducLlon. CC's response LhaL
each clusLer had unlque" feaLures, raLes
were worked ouL across lLems on noLlonal
basls", and hlgh C&M cosL for lndlvldual
lLems ls unaccepLable.
Whlle Lhe compleLe deLalls are glven ln
Annexe - 9.1, some glarlng examples are
10
glven below .
Item M|n|mum rate (per un|t |n ks.) Max|mum rate (per un|t |n ks.)
Cha|r 8Cn
Cha|r Io|d|ng - added 8Cn
Cha|r Io|d|ng - added ICn
Cha|r Cff|ce 8Cn
Cha|r Cff|ce ICn
Cha|r at|o ICn
Cha|r Sofa 1 seater (Iabr|c) 8Cn
Cha|r Sofa 1 seater (Iabr|c) ICn
Cha|r Sofa Sw|ve| 8Cn
Cha|r Sofa Sw|ve| ICn
Cup 8oards 8Cn
ress 1ab|e ICn
kefr|gerator (Sma|| ) 8Cn
kefr|gerator 8Cn Large.
Safe Sma|| 8Cn
Safe Sma|| ICn
1ab|e Io|d|ng 1200x760 ICn
1ab|e Io|d|ng 8Cn
Umbre||a at|o (8Cn)
V|s|tor Cha|r Stackab|e 8Cn
V|s|tor Cha|r Stackab|e ICn
1,276
1,374
1,439
1,318
3,336
1,276
10,030
10,030
12,323
12,323
19,071
19,071
7,112
7,112
8,342
4,012
9,848
13,129
7,473
8,973
3,191
3,191
1,304
1,178
1,342
10,234
3,217
3,306
4,333
7,393
12,244
18,229
13,304
24,216
24,487
36,438
33,743
12,132
13,404
36,664
14,383
22,937
49,864
20,313
20,313
10,774
10,774
3,137
2,192
3,476
Iurn|ture
(Note. 8On - 8ock of noose, lOn - ltoot of noose)
A|r cond|t|on|ng nVAC - 111
A|r cond|t|on|ng nVAC - 1S01
A|r cond|t|on|ng nVAC - S.S1
DG Sets 10 kVA - 41SV, S0 nz, 1S00 kM
DG Sets 12S kVA - 41SV, S0 nz, 1S00 kM
DG Sets 1S kVA - 41SV, S0 nz, 1S00 kM
DG Sets 2S0 kVA - 41SV, S0 nz, 1S00 kM
DG Sets 300 kVA - 41SV, S0 nz
DG Sets S kVA - 41SV, S0 nz, 1S00 kM .
DG Sets S00 kVA - 41SV, S0 nz, 1S00 kM
DG Sets 62.S kVA - 41SV, S0 nz, 1S00 kM
DG Sets 82.S kVA - 41SV, S0 nz, 1S00 kM
Iue| C|| 1ank for D|ese| Storage -
Stee| 1ank 1S00 |ts. w|th motor and
p|pes to f||| d|ese| |n DG set.
Generator aux|||ary equ|pment
GI |pe Larth|ng
ICL 8Ck, Large, 70L ICn
ower - 10kVA US -
ower - 180 kVA US -
ower - 1kVA US -
2,03,131
16,21,809
69,632
92,869
1,16,087
1,82,291
13,84,719
4,93,368
1,82,291
38,043
2,43,033
7,23,341
9,28,692
10,44,779
10,22,864
2,90,217
88,132
18,22,913
3,48,260
4,06,303
23,497
34,826
3,040
4,467
4,86,110
14,34,100
3,381
7,47,003
2,08,87,833
1,46,733
2,64,120
3,76,348
2,33,991
1,43,83,303
10,30,862
3,87,747
1,82,291
3,32,608
13,47,970
16,43,016
20,20,238
23,90,193
3,38,380
2,32,173
29,29,631
6,07,638
8,81,620
1,17,330
2,03,497
9,496
16,070
11,27,726
60,76,377
1,13,790
Industr|a| goods:
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 1S0
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Item
M|n|mum rate (per un|t |n ks.)
Ad[ustab|e 8enches : Dec||ned
Ad[ustab|e 8enches : Inc||ned
Ad[ustab|e 8enches : Norma|
Cross 1ra|ner
Gym M|rrors - Iu|| ne|ght
Mu|t| Gym - 12 stat|ons w|th pu||ey and |eg extens|on cab|es
Sk|pp|ng kopes
Stepper
1readm|||
1w|sters
V|brators
We|ghts, Dumbe|s and 8arbe|s (per kg)
24,306
24,306
24,306
1,46,763
2,433
2,20,147
480
3,706
4,03,603
3,803
13,213
83
1,33,763
1,38,436
1,23,621
8,01,066
13,303
9,01,484
1,268
3,06,087
8,83,933
29,333
49,864
317
I|tness equ|pment
Max|mum rate (per un|t |n ks.)
Item
M|n|mum rate (per un|t |n ks.) Max|mum rate (per un|t |n ks.)
ower - 200kVA US -
ower - 2S0kVA US -
ower - 2kVA US -
ower - 320kVA US -
ower - 400kVA US -
ower - 40kVA US -
ower - SkVA US -
ower - 600VA US -
ower - 60kVA US -
r|nter ICn
18,83,406
20,73,947
60,764
23,73,612
26,39,369
10,36,633
1,82,291
2,371
12,13,738
3,437
62,72,892
72,91,632
2,37,924
2,43,03,308
3,46,87,394
14,99,000
4,93,089
60,688
17,46,713
21,446
Industr|a| goods:
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
A|r Ireshener
Automat|c shower spr|nk|ers
8ookcase ICn
8rush
Co|our 1V ICn
Des|gnated Lane Marker 1apes
D|sposab|e G|asses
Door Mats ICn
Ian - edesta|, Commerc|a|, 46cm n|gh 8Cn
Ian edesta| 8Cn
Ian edesta| ICn
I|rst A|d k|t
Garbage 8ags
L|qu|d Soap D|spenser
M|rror Stand|ng n:160 cm ICn
Mosqu|to kepe||ent
Cff|ce Stat|onary
( aper, SLapler, 8eslsLer, pens, penclls eLc, )
|asma 1V ICn
|ast|c kope |n Sm
kefr|gerator Large ICn
kubb|sh 8|n 1S Ltr. S|ze
Soap D|spensers
1|ssue aper (8ox)
1|ssue aper D|spenser
1|ssue ko||
1o||etr|es
Umbre||a at|o ICn
Wa|| C|ock 8Cn
Wash|ng Mach|ne & Dryer ICn
Water D|spenser - 20 Lts.
Water Iug
266
13,140
4,318
63
19,639
363
1
322
1,913
2,431
2,394
938
4
187
1,682
114
637
28,460
38
13,129
243
187
84
634
22
789
1,342
603
13,940
1,776
132
1,436
1,82,291
12,133
1,841
36,263
1,380
37
939
7,149
7,881
7,736
6,711
3,068
9,379
3,362
188
9,246
72,917
2,762
36,210
7,618
9,379
293
4,632
3,731
9,313
3,719
2,000
61,218
32,986
1,944
Cther genera|]househo|d |tems:
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
9.2.9.2 lnsLances of ulfferenL 8aLes by Lhe
same vendor
We have found blzarre cases, where Lhere
were subsLanLlal dlfferences beLween Lhe
raLes offered by Lhe same vendor (lco-
ueepall) for Lhe same lLem ln dlfferenL
clusLers. Losses on Lhls accounL alone work
ouL Lo 8s. 11.06 crore. lncldenLally, we dld
noL flnd such dlfferences ln respecL of oLher
Lwo vendors vlz. nussll and CL Meroform
who also goL mulLlple clusLers
Whlle some lLems would be overlapplng
wlLh Lhe deLalls glven ln Lhe prevlous
secLlon, some glarlng examples are glven ln
Lhe Lable below, (deLalls are glven ln
Annexe-9.3).
1oble 9.6 - wlJely votyloq ltem-wlse totes ftom tbe some veoJot (llco-ueepoll)
kates for power from DG Sets
CC had agreed to pay ks.11] un|t to
|co Deepa|| towards per un|t
consumpt|on of DG ower |n c|uster VI,
wh||e the rate agreed for other c|usters
ranged from ks. 14 to ks. 73. 1hus the
d|fference |n rates was from 1.27 t|mes
to 6.63 t|mes. 1ota| excess expend|ture
for th|s one |tem a|one was of ks. 8.16
crore, deta||s are g|ven |n Annexe-9.2
Item Max. kate M|n. kate
339
402
1077
1,148
2,728
646
31,381
3,33,634
2,63,331
3,06,087
133
30,609
20,308
339
303
342
917
977
2322
330
26,883
4,39,879
2,27,968
2,62,788
131
26,279
20,308
480
LLLC1kICAL I1LMS
6A, 1 phase, p|ug
16A, 1 phase, p|ug po|nts
4 |ug, SA, 1 phase extens|on boards
Surge rotector
nCUSLnCLD I1LMS
I|tness and Gym equ|pment
1readm|||
Cross 1ra|ner
Stepper
We|ghts, Dumb|es and 8arbe|s
V|brators
1w|sters
Sk|pp|ng kopes
po|nts
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
9.2.9.3 8y comparlng lLem wlse raLes wlLh
oLher supporLlng documenLs
ln some cases, where Lhe lLems were
lmporLed, we compared Lhe Cll cosL
declared Lo Lhe CusLoms auLhorlLles wlLh
Lhe cosL charged Lo Lhe CC (only for
Lemporary hlrlng and noL purchase). ln Lhe
1oble 9.7 - compotlsoo of lowest ltem-wlse totes to totes JecloteJ to costoms ootbotltles
Item
4,741
1,380
1,380
2
948
790
1,16,446
790
1,897
1,301
11,832
7,27,448
12,01,871
13,99,347
3,942
1,314
1,314
1
789
637
91,976
637
1,377
1,248
9,833
6,19,644
10,23,739
11,92,140
nCUSL nCLD I1LMS
I|rst A|d k|t
1|ssue aper 1owe|s
8athroom she|ves
D|sposab|e G|asses
1o||eter|es
Cff|ce Stat|onary (aper, Stap|er, kes|ster, ens, enc||s etc.)
Garbage So||d Waste Conta|ner 6"x6"
A|r Ireshener
1|ssue aper D|spenser
L|qu|d Soap D|spenser
Water D|spenser - 20 |ts.
kL- IA8kICA1LD I1LMS
refabr|cated WC un|t- Iootpr|nt-3.Smx3.0m
refabr|cated WC un|t- Iootpr|nt-8.3mx3.1m
refabr|cated WC un|t- Iootpr|nt-12.0mx3.6m
absence of flnal 8CCs of lLems acLually
supplled, we could noL work ouL Lhe LoLal
moneLary loss. Powever, we found
dlfferences beLween Lhe Cll cosL and Lhe
hlrlng charges Lo CC, ranglng from 2 Lo
178 per cenL. Some lllusLraLlve examples
are glven below (deLalls are glven ln
Annexe-9.4).
Item Lowest kate (|n ks.) Mkt. kate]CII va|ue
dec|ared to Customs (|n ks.)
Vendor
Cupboard |geon no|es ICn
8ookcase 4 she|ves 8Cn
Coffee 1ab|e 1200x400 ICn
Coffee 1ab|e 1200x400 8Cn
Wh|teboard Large 8Cn
Coat Stand 1800 h|gh 8Cn
8ookcase 4 she|ves ICn
Cab|net 1020 h|gh ICn
Safe Sma|| ICn
1ab|e at|o 1S40x1000 ICn
W|tches nats - 1ransport 8Cn
Not|ce 8oard 8Cn
kecept|on Counter 1800x460 n:11S0 ICn
V|s|tor Cha|r Stackab|e ICn
Wh|teboard Large ICn
Coat Stand 1800 h|gh ICn
1ab|e at|o 1S40x1000 8Cn
Cab|net 1800 h|gh ICn
14,440
7,633
3,830
3,830
3,363
1,963
8,206
8,314
8,973
2,994
347
3,101
8,297
1,342
4,038
2,188
2,664
11,076
3,200
2,840
1,300
1,300
1,420
830
3,470
3,320
3,870
1,300
230
1,420
3,830
720
1,890
1,030
1,300
3,460
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
lco
Max. kate M|n. kate
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
lncldenLally, such sub-conLracLlng was
carrled ouL lrregularly by Lhe vendors
wlLhouL CC's approval, as conLracLually
requlred.
We a|so not|ced other |nstances of exorb|tant|y
pr|ced over|ays |tems, as summar|sed be|ow:
We also found some lnsLances of sub-
conLracLlng (publlc dlsplay boards, uS, and
uC seLs) by Lhe vendors, whlch revealed
huge dlfferences of 132 per cenL Lo 1140 per
cenL beLween Lhe raLes charged Lo Lhe CC
and Lhe raLes charged by Lhe sub-
conLracLors, deLalls are glven ln Annexe - 9.3.
ln response Lo adverse medla publlclLy, CC
publlshed a full page adverLlsemenL ln
several naLlonal newspapers aL a cosL of 8s.
0.34 crore on 10-11 november 2010.
Among oLher aspecLs, Lhe adverLlsemenL
aLLempLed Lo [usLlfy Lhe prlces of Llssue rolls
as per box of 100 rolls" and noL per roll.
refabr|cated Structures at ILN
Stad|um
CC pald renLal - [8s.4,230 per sqfL
(vendor-lco ueepall ConsorLlum)
CWu pald renLal -[1,643 per sqfL
(vendor - ueepall ueslgns & LxhlblLs )
Such excesslve renLal raLe of pre-
fabrlcaLed lLems was found ln oLher
clusLers also. 1he excess expendlLure
on Lhls accounL was Lo Lhe Lune of
8s.13.39 crore, (deLalls are glven ln
Annexe 9.6).
Supp|y of Water D|spensers
CC hlred 3120 waLer dlspensers under
overlays conLracLs, wlLh raLes ranglng
beLween 8s. 1,776 and 8s. 32,986 per
unlL. Lxcess expendlLure (based on Lhe
lowesL cosL) worked ouL Lo 8s.3.82
crore.(Annex 9.7)
1hls lLem was lnfrucLuous, slnce Coca
Cola was requlred Lo provlde adequaLe
mlneral waLer Lo all Lhe venues durlng
Lhe enLlre perlod of Lhe Cames, under
Lhe sponsorshlp agreemenL. lurLher,
uelhl !al 8oard (u!8) also made
arrangemenLs for provlslon of drlnklng
waLer aL venues by seLLlng up lLs own
waLer klosks for dlspenslng waLer, for
whlch an amounL of 8s 0.26 crore was
payable Lo Lhe klosk conLracLor.
Water D|spenser of norma| spec|f|cat|ons h|red by CC
We have verlfled Lhls from Lhe comparaLlve
evaluaLlon sLaLemenLs, and found LhaL Lhe
lnformaLlon ln Lhe adverLlsemenL was
mlsleadlng. ln response, CC has now
lndlcaLed LhaL Lhere were some problems
ln comparlson".
C
n
A
1
L
k
Ceremon|es
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 1SS
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
10
1he moin ceremonio/ events of cw6-2010 were the ueen's 8oton ke/oy {contoininq o
messoqe of ueen /itobeth - ll) which wos to be corried throuqh the commonweo/th
countries ond different ports of lndio, ond the openinq ond c/osinq ceremonies which were
to be siqnoture events showcosinq lndion cu/ture ond heritoqe. we note thot the
ceremonies were wide/y opprecioted, in porticu/or the openinq ceremony wos o
spectocu/or success. Other ceremonio/ events inc/uded the ue/hi copsu/e ot the previous
cw6, ond the ceremonies ot cY6-2008, Pune.
we found siqnificont irrequ/orities in the oppointment of both Moxxom lnternotiono/ os
the consu/tont for 8k ond lock Morton wor/dwide {lMw) os the event monoqement
oqency for the 8k Lounch ceremony in London on 29 October 2009. lurther, the scope of
work for lMw wos inexp/icob/y reduced in October 2009 {with on increose in cost), ond the
Oc mode hiqh/y suspect poyments of l8,2l7 to two /itt/e known entities - 4M li/ms uk
Ltd ond 4M cor ond von nire Ltd - for diverse ond unconnected services for the 8k Lounch
ceremony. 1he ossiqnment of work ond poyments therefore were hiqh/y questionob/e,
ossocioted opprovo/s ond c/eoronces were obtoined ond poyments mode with uncommon
hoste, ond /orqe omounts were o/so poid in cosh, perhops to ovoid /eovinq o tronsoction
troi/. 1he ro/e of 5hri 15 uorbori ond 5hri 5onjoy Mohindroo, who were unre/oted to Oc's
ceremony lunctiono/ 4reo, in the 8k Lounch ceremony is o/so questionob/e.
we found thot p/onninq for the openinq ond c/osinq ceremonies wos inordinote/y de/oyed.
lurther, o mu/tip/icity of oqencies were enqoqed - 5hri 8horot 8o/o os creotive uirector/
creotive consu/tont, 5pectok Productions {Mr. kic 8irch) os lnternotiono/ consu/tont,
witcroft os the vent Monoqement lirm ond 17 other consu/tonts. 1here wos considerob/e
over/op between the ro/es ond responsibi/ities of these mu/tip/e oqencies. lurther, the
event oqency chorqes of ks. 1.09 crore poid to witcroft {in oddition to o fixed ceremonies
monoqement fee of ks. 5.40 crore) ore, in our opinion not justified. we o/so found thot
5pectok Productions ond witcroft hod tied up with other experts we// in odvonce of the
oword of the controcts. 1he enqoqement of the odditiono/ consu/tonts {ot o cost of ot /eost
ks. .12 crore) by the Oc omounted to o c/eor finoncio/ benefit to witcroft.
1here were o/so mojor irrequ/orities in procurement of occessories/ specio/ items. 1he
consu/tont for the bond stond, Mr. Mork lisher, qot his fu// fee of u55 514,000, even thouqh
the ideo of the bond stond wos obondoned. Mr. lisher then presented o desiqn for on
oerostot, which wos occepted, the foct thot 5pectok Productions ond the oerostot vendor
ChapLer 10 - Ceremonles
were port of the some qroup wos conceo/ed. 1here were o/so serious irrequ/orities in the
technico/ evo/uotion ond oword of the /iqhtinq/ seorch/iqht controct, os we// os the oword
of the controct for video content.
controcts for ks. 1.49 crore for ort direction ond props for the openinq ond c/osinq
ceremonies were irrequ/or/y oworded to 8/ue Lotus Productions, even without hovinq on
opproved /ist of props octuo//y required. nuqe quontities of props remoined unuti/ised.
5ome props were not even received. Mony of these props were exorbitont/y priced.
Oc went in for mu/tip/e forms of qround protection {qround protection ti/es, qround c/oth,
ond qross turf rep/ocement) ot o cost of ks. 17.84 crore for the openinq ond c/osinq
ceremonies, which, in our opinion, wos not odequote/y justified. 1here were mojor
tenderinq irrequ/orities, the quontities required were fixed ond reduced orbitrori/y, ond
/orqe quontities of qround protection ti/es ond qround c/oth remoined unuti/ised.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
of Lhe Cames wlLh large scale world-
wlde coverage, whlch would showcase
lndlan clvlllsaLlon, hlsLory and culLural
dlverslLy.
CLher mlnor evenLs and launches - e.g.
1300 days Lo go" and 1000 days Lo
go".
Crganlslng such ceremonlal evenLs would
normally requlre Lwo players - a
consulLanL Lo render advlce on Lhe
creaLlve concepL, and an evenL
managemenL flrm whlch dellvers Lhe
ceremony ln llne wlLh Lhe approved
creaLlve concepL. Powever, Lhe CC
ended up appolnLlng a mulLlpllclLy of
agencles for Lhese Lasks.
1he orlglnal lCA bld of May 2003 lndlcaLed
an amounL of 8s. 30 crore for ceremonles. A
comparlson of Lhe budgeL and expendlLure
of Lhe CC for ceremonles Llll daLe ls glven
below:
1he maln ceremonlal evenLs for CWC-2010

were:
A capsule" aL Lhe Closlng Ceremony of
Melbourne CWC-2006, showcaslng Lhe
nexL Cames,
1he openlng and closlng ceremonles of
Lhe CommonwealLh ?ouLh Cames -
2008 (C?C-2008), une, whlch was a
sub-evenL of CWC-2010,
1he ueen's 8aton ke|ay (8k) - 1hls
was Lhe ceremonlal carrylng of Lhe
baLon (conLalnlng a message from Lhe
Pead of Lhe CommonwealLh, Cueen
LllzabeLh ll) Lhrough Lhe parLlclpaLlng
CommonwealLh counLrles, and Lhrough
dlfferenL parLs of lndla culmlnaLlng ln
Lhe Cpenlng Ceremony of CWC-2010.
1he open|ng and c|os|ng ceremon|es -
1hese were Lo be Lhe slgnaLure evenLs
10.1 Cverv|ew
1oble 10.1 - 8oJqet ooJ expeoJltote oo cetemooles
Lvent
Cr|g|na| budget
(March 2006)
kev|sed 8udget
(Iu|y 2008)
Lxpend|ture
(December 2010)
Capsu|e for Me|bourne CWG-2006
#
Cpen|ng and C|os|ng Ceremon|es for
CG-2008, une
ueen's 8aton ke|ay
Cpen|ng and C|os|ng Ceremon|es
Cthers
1ota|
30
7
83
122
29.78
22.06
31*
106
13.04
223.88
27.36
21.76
26.00
240.00
13.04
330.36
Notes:
# lolJ fot by CNc1u, tbls wos oot pott of Oc's boJqet
* wblle tbe ovetoll O8k boJqet wos teJoceJ ftom ks.51 ctote to ks.26 ctote tbtooqb te-opptoptlotloo lo tbe Oc,
tbe boJqet fot tbe O8k looocb cetemooy ot looJoo wos eobooceJ ftom ks.2.20 ctote to ks.12.77 ctote
1bls wos locteoseJ to ks. J00 ctote, tbtooqb oJJltloool boJqet of ks. 19J ctote sooctlooeJ lo 5eptembet 2010.
(ks. |n Crore)
In our v|ew, the eva|uat|on comm|ttee's
report appears to have been [ust a
forma||ty to |eg|t|m|se a dec|s|on
a|ready taken |nforma||y.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
declared 1-1 ln Lechnlcal evaluaLlon and
only a slngle commerclal bld was opened
and selecLed.
lnLeresLlngly, Lhe conLracL wlLh WlzcrafL for
8s. 12.77 crore was slgned on 1 AugusL
2008, well before:
submlsslon of raLes by WlzcrafL on 3
AugusL 2008, and
submlsslon of a noLe on 23 AugusL 2008
by Lhe evaluaLlon commlLLee for LMC's
approval,
We observed LhaL WlzcrafL lnLernaLlonal

LnLerLalnmenL rlvaLe LLd. (WlzcrafL) was
appolnLed ln SepLember 2003 as Lhe evenL
managemenL flrm (LMl) for dellverlng Lhe
capsule of Lhe nexL hosL clLy (uelhl) of CWC-
2010 on nomlnaLlon" on Lhe basls of pasL
experlence. lor Lhls, Lhe LCl released ln !uly
2003 (agalnsL whlch flve proposals were
recelved) was abandoned. lurLher, WlzcrafL
submlLLed a budgeL for 8s. 13.03 crore for
producLlon and execuLlon expenses
(excludlng Lhelr commlsslon of 13 per cenL),
whlch was approved and pald wlLhouL any
lndependenL analysls and scruLlny by CC .
lncldenLally, WlzcrafL was also appolnLed as
Lhe LvenL ManagemenL llrm for Lhe
ceremonles for C?C-2008, une and Lhe
maln CWC-2010 ceremonles - Lhe openlng
and closlng ceremonles. 1hese
appolnLmenLs lnvolved deflclenL Lenderlng
and award. WlzcrafL was also Lhe evenL
manager for Lhe ceremonles of oLher lCA-
assoclaLed sporLlng evenLs - Lhe Afro-Aslan
Cames -2009 (Pyderabad), Lhe SAl WlnLer
Cames - 2010 (uehradun), and Lhe naLlonal
Cames - 2011 (8anchl).
WlzcrafL was appolnLed ln AugusL 2008 as
Lhe evenL managemenL flrm for Lhe openlng
and closlng ceremonles for C?C-2008, une,
afLer a deflclenL Lenderlng process. AfLer
floaLlng an 8l ln March 2008, Lo whlch Lwo
1
responses were recelved, WlzcrafL was
1he C88 represenLed an opporLunlLy for Lhe
CC Lo generaLe slgnlflcanL lnLernaLlonal
publlclLy and promoLlon ln advance of Lhe
Cames. 1he C88 lnvolved dlfferenL
segmenLs:
Lhe formal C88 launch aL London by
Cueen LllzabeLh ll on 29 CcLober 2009,
Lhe lnLernaLlonal leg of Lhe C88 from 29
CcLober 2009 Lo 23 !une 2010 Lhrough
Lhe CommonwealLh counLrles, and
lurLher, Lhe conLracL requlred approval by

Lhe L8, whlch was noL obLalned.
We also found excess paymenL of 8s. 0.22
crore Lo WlzcrafL on accounL of arLlsLs,
whose names were lndlcaLed ln Lhe
response Lo Lhe orlglnal 8l buL excluded
from Lhe flnal conLracL, demonsLraLlng clear
favourlLlsm.
10.2 Capsu|e for Me|bourne
CWG-2006
10.3 Cpen|ng and C|os|ng
Ceremon|es for CG-2008,
une
10.4 ueen's 8aton ke|ay (8k)
1
1be otbet tecbolcolly poollfleJ blJJet wos Altetoote
8tooJs 5olotloo ltJ.
We found that payments of 5 2S,8S0
(ks. 1.16 |akh) were made to Maxxam
for November-December 2007, even
before the |ssue of the LoI to Maxxam
|n Ianuary 2008.
It appears that CC had a|ready
|nforma||y dec|ded to award the
contract to Maxxam, and the
eva|uat|on process was [ust a charade.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
earller. lurLher, CC dld noL possess
lnformaLlon on Lhe acLual mandays of
consulLancy servlces provlded by
Maxxam and made full paymenLs,
evldenLly wlLhouL conslderlng Lhls
aspecL, and
ConLrary Lo Lhe 8l provlslons, CC
agreed Lo bear Lhe servlce Lax llablllLy of
2
uS$ 0.24 mllllon (8s. 1.08 crore),
lrregularly beneflLlng Maxxam Lo LhaL
exLenL.
Lhe domesLlc leg of Lhe C88 Lhrough 33

SLaLes/u1s before arrlvlng aL !Ln
SLadlum for Lhe Cpenlng Ceremony on 3
CcLober 2010.
2
1 u5 5 = ks. 45
10.4.1 Consu|tancy Serv|ces for 8k
We found LhaL Maxxam lnLernaLlonal was

lrregularly awarded Lhe conLracL for
consulLancy servlces for C88 ln lebruary
2008, as summarlsed below:
1he process from lssue of LCl (May
2007) Lo award of Lhe conLracL (lebruary
2008) Look an unduly long perlod of
elghL monLhs,
1here was no global Lenderlng, and
adequaLe Llme was noL provlded for
poLenLlal bldders. Maxxam lnLernaLlonal
was also allowed Lo submlL lLs bld on 23
SepLember 2007 afLer Lhe due daLe for
submlsslon,
L-malls seeklng presenLaLlons from
Lechnlcally quallfled bldders were senL Lo
Maxxam on 27 SepLember 2007 buL Lo
Lhe oLher Lwo bldders only on 29
SepLember 2007, provldlng Lhem [usL 3
days for preparaLlon,
Maxxam was Lhe hlghesL cosL bldder aL
8s. 8.01 crore, buL was awarded Lhe
conLracL on Lhe basls of a newly evolved
crlLerla - cosL per manday (raLher Lhan
LoLal cosL), whlch was noL menLloned
10.4.2 Des|gn and manufacture of batons
for 8k
As per Lhe PosL ClLy ConLracL, Lhe CC was
requlred Lo supply Lwo baLons for Lhe C88 -
a rouLe baLon (whlch was Lo be carrled
LhroughouL Lhe rouLe) and a ceremonlal
baLon (lnLo whlch Cueen LllzabeLh ll's
message was Lo be Lransferred for Lhe
openlng ceremony). We found LhaL Lhere
was a delay of 13 monLhs ln obLalnlng CCl
approval for Lhe baLon deslgn, due Lo Lhe
CC's fallures.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
of Lhe meeLlng of Lhe Lechnlcal
evaluaLlon commlLLee whlch declded
Lhese crlLerla. ln facL, Lhese evaluaLlon
crlLerla were noL even communlcaLed Lo
Lhe bldders, lL ls Lhus noL clear on whaL
basls Lhese crlLerla were quesLloned.
1he C88 was Lo be launched ln London by
Cueen LllzabeLh-ll and Lhe resldenL of
lndla on 29 CcLober 2009. ln May 2009, Lhe
CC lncreased Lhe budgeL for Lhe C88 launch
ceremony from 8s. 2.20 crore Lo 8s. 12.77
crore, purporLedly on accounL of Lhe vlslL of
Lhe resldenL.
ln addlLlon, excess paymenLs, amounLlng Lo
30331 (8s. 22.90 lakh) were made Lo !MW
aL Lhe lnsLance of Chalrman and SC, CC as
deLalled below:
Increased Scope of Work due to v|s|t of
res|dent - ln CcLober 2009, uC-CC and
Chalrman CC approved an addlLlonal
paymenL of 10330 (8s. 7.76 lakh) Lo
!MW proposed by Shrl San[ay
Mahlndroo, uuC, purporLedly due Lo
lncreased scope of work on accounL of
Lhe vlslL of Lhe resldenL of lndla. ln facL,
Lhls vlslL was known Lo Lhe CC ln May
2009 lLself, well before Lhe award of Lhe
conLracL Lo !MW. nelLher Chalrman nor
uC, whlle approvlng Lhe paymenL,
10.S 8k Launch Ceremony

3
1I= k5.75
10.S.1 Lvent Management Agency for
8k Launch at London
lor Lhe C88 launch ceremony aL London

on 29 CcLober 2009, CC appolnLed !ack
MorLon Worldwlde (!MW) on 24
SepLember 2009 aL a cosL of 8s. 1.30 crore
3
( 1, 99,982 ).
We found Lhe lnLegrlLy of Lhe process of
award of Lhe C88 evenL managemenL
agency conLracL Lo !MW was suspecL:
Clobal Lenderlng was noL followed, nor
was sufflclenL Llme provlded Lo poLenLlal
bldders,
1echnlcal evaluaLlon was flawed, slnce
welghLage was glven Lo bldders who
submlLLed Lhemes, drawlngs and plans,
whlch was conLrary Lo Lhe 8l (whlch
lndlcaLed such Lhemes and concepLs as
a dellverable of Lhe flrm, ln llalson wlLh
Lhe CC). 1hus, bldders who poLenLlally
had advance knowledge of Lhls
requlremenL were aL an advanLage,
Cne Lechnlcally quallfled bldder
wlLhdrew from Lhe process, quesLlonlng
Lhe evaluaLlon crlLerla adopLed and also
lndlcaLlng LhaL no Llme was avallable for
proper execuLlon. lnLeresLlngly, Lhls
bldder quesLloned Lhe evaluaLlon
crlLerla a day afLer Lhe purporLed daLe
Inexp||cab|e reduct|on |n
scope of work of IMW
Less than 20 days after award (and
w|th |ess than 20 days to the 8k
|aunch), CC rev|sed the work order to
IMW on 10 Cctober 2009, remov|ng
work re|at|ng to outdoor v|deo d|sp|ay
screens, transport and |og|st|cs (wh|ch
were |ater awarded to AM I||ms and
AM Cars & Van n|re Ltd) and
s|mu|taneous|y |ncreas|ng (rather than
decreas|ng) the cost to ks. 1.87 crore
( 2, 49,739). 1h|s reduct|on |n scope
and |ncrease |n cost |s |nexp||cab|e.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
quesLloned Shrl Mahlndroo regardlng
Lhe reasons for change of scope of work.
lurLher, durlng execuLlon of Lhe work,
CC hlred cerLaln exLra lLems from !MW,
for whlch 2370 (8s. 1.78 lakh) was
purporLedly pald ln cash by Shrl
Mahlndroo Lo !MW.
1rafa|gar Square Iunct|on - CC
scheduled a funcLlon aL 1rafalgar Square,
London, whlch was laLer cancelled and
!MW lnLlmaLed abouL Lhls cancellaLlon.
SubsequenLly, !MW ralsed a blll of
31000 (8s. 23.23 lakh) for Lhls evenL,
clalmlng LhaL Lhey had already lncurred
Lhese expenses. Curlously, Lhls lssue
was dealL wlLh dlrecLly by Lhe Chalrman
and SC. 1he lnsLrucLlon Lo work on Lhls
funcLlon was glven from Lhe Chalrman's
SecreLarlaL, and Lhe SC agreed Lo pay
half Lhls amounL, ulLlmaLely 17811
(8s. 13.36 lakh) was pald Lo !MW.
4
S
6
8oseJ oo o ptoposol ftom tbe Oc fot o J7-membet
Jeleqotloo
5btl kolmoJl (ex-cboltmoo, Oc) stoteJ tbot 5mt. Meeto
kolmoJl bote bet owo ttovel expeoses, wltboot bowevet
ptovlJloq soppottloq Jocomeots. nowevet, Oc coofltmeJ
tbot tbe tlcket lo tbe oome of 5mt. Meeto kolmoJl wos
bookeJ by Oc.
wlfe of O5u to lC uelbl
10.S.2 S2 member de|egat|on for
8k Launch Ceremony
Cn 21 CcLober 2009, Chalrman, CC

approved a 32 member delegaLlon for Lhe
C88 Launch Ceremony, whlch was aL
varlance Lo Lhe 36 member delegaLlon
4
approved by M?AS on 19 CcLober 2009 ,
reasons for non-adherence Lo Lhe M?AS
approval, and Lhe crlLerla for selecLlon of
delegaLes, were noL documenLed.
ConsequenLly, Lhe CC booked 36 rooms,
and lncurred excess expendlLure of 22,910
(8s. 17.18 lakh) for Lhe persons ln excess of
Lhe M?AS-approved delegaLlon. We also
noLlced:
LxLra expendlLure of 8s. 14 lakh on
accounL of Lravel booklng of exLra
members (lncludlng SmL. Meera
S 6
kalmadl and SmL. 8an[an Mukher[ee )
and relaLlves of baLon bearers, who
were noL ln Lhe approved llsL,
CC falllng Lo deducL 1uS amounLlng
18898 (8s.14.17 lakh), whlle maklng Lwo
parL paymenLs Lo Lhe hoLel,
Lxcess paymenLs LoLalllng 2084
(8s. 1.36 lakh) on accounL of double
charglng for Lwo rooms, and a superlor
room beyond enLlLlemenL, and
Lxcess advance paymenL of 3399
(8s.2.33 lakh) by Lhe CC Lo Lhe hoLel.
ko|e of Shr| Darbar| and Shr|
Mah|ndroo |n 8k Launch
Interest|ng|y, the expenses for the 8k
London |aunch were not approved by
the 8k funct|ona| head. 1hese
expenses were hand|ed by Shr| 1S
Darbar|, IDG (kevenue Market|ng &
Cha|rman Secretar|at) (who was
appo|nted by Cha|rman, CC, a|though
w|thout a forma| off|ce order, as |n-
charge of the London |aunch) and Shr|
San[ay Mah|ndroo, DDG (1echno|ogy
and Market|ng) (who was c|ose|y
|nvo|ved w|thout a forma| ro|e).
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
10.3.3.1 Plrlng of AM lllms uk LLd. for
large ouLdoor vldeo dlsplay
screens
We observed Lhe followlng:
1hree blds were purporLedly obLalned
by Shrl Mahlndroo wlLhouL any
adverLlsemenLs belng lssued, lL ls noL
known how Lhese blds were obLalned,
Cne of Lhe bldders (3 uoLs vlslon LLd.)
was noL reglsLered wlLh Lhe uk 8eglsLrar
of Companles, we also verlfled LhaL Lhe
agency dld noL exlsL aL lLs sLaLed
address,
1he credenLlals of AM lllms uk LLd.
appear suspecL, slnce Lhe company
reglsLraLlon and vA1 reglsLraLlon
numbers lndlcaLed ln lLs advance lnvolce
were false,
1he commlLLee, conslsLlng of Shrl
!eychandran, !uC (l&A), Shrl
Mahlndroo, uuC (1M) and Shrl Sudhlr
verma, uuC (CommunlcaLlons) whlch
evaluaLed Lhe quoLes and selecLed AM
lllms uk LLd aL a LoLal cosL of 146,869
(8s. 1.10 crore) and recommended 100
per cenL paymenL ln advance, was
dlfferenL from Lhe orlglnally formed
commlLLee. 1he mlnuLes of Lhe
commlLLee meeLlng purporLedly held aL
London on 23-24 CcLober 2009 were
slgned by Shrl !eychandran, who was
acLually ln uelhl on Lhese daLes and
processed Lhe paymenL Lo AM lllms LLd.
AM lllms LLd. submlLLed an advance
lnvolce for 146869 (8s. 1.10 crore) on
23 CcLober 2009. Approval was
obLalned by Shrl Mahlndroo from Lhe
Chalrman and communlcaLed Lo Shrl
!eychandran by e-mall / fax and
processed, Lhe CC CA's cerLlflcaLlon of
paymenL of forelgn currency obLalned,
10.S.3 n|r|ng of AM I||ms Uk Ltd and

AM Cars & Van n|re Ltd for
var|ous serv|ces
We found that the CC made payments
of 386,237 (ks.2.90 crore) dur|ng
Cctober 2009 to two ||tt|e known
ent|t|es, AM I||ms Uk Ltd. and AM Car
and Van n|re Ltd, for d|verse and
unconnected serv|ces for the 8k
Launch Ceremony:
146,869 for h|r|ng of |arge outdoor
v|deo d|sp|ay screens and 127S for
postage, photocopy, paper,
cartr|dges etc,
238,093 for transport fac|||t|es,
branded cars & buses, dr|ver
serv|ces, power generat|on fac|||t|es,
mob||e to||ets, te|ephone charges
etc., th|s |nc|uded a payment of
100,62S due to AM Cars and Van
n|re Ltd but actua||y made to AM
I||ms Uk Ltd.
1hese serv|ces were or|g|na||y to be
prov|ded by the 8k Lvent
Management Agency, IMW, but were
taken away from IMW's scope of work
[ust 20 days before the 8k Launch
ceremony for unexp|a|ned reasons.
In our v|ew, the ass|gnment of work to
AM I||ms Uk Ltd] AM Cars and Van
n|re Ltd and payments therefore were
h|gh|y quest|onab|e, assoc|ated
approva|s and c|earances were
obta|ned and payments made w|th
uncommon haste, and |arge amounts
were a|so pa|d |n cash, perhaps to
avo|d |eav|ng a transact|on tra||.
10.S.4 G|ft |aques for 8k Launch
Ceremony
CC placed an order on 23 CcLober 2009 for
91 sllver and gold plaLed plaques aL a cosL of
8s. 14 lakh as glfL lLems for Lhe C88 Launch
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
and funds Lransferred Lo AM lllms LLd -
all on 24 CcLober 2009 wlLh undue hasLe
by Lhe CC.
ln a separaLe response, Shrl kalmadl
lndlcaLed LhaL he gave hls ln-prlnclple
clearance, on accounL of urgency and
Lhe LhreaL of cancellaLlon of Lhe C88
launch (as lnformed by Shrl Mahlndroo),
and also expressed hls dlssaLlsfacLlon on
Lhe manner ln whlch Lhls lssue had been
handled. Pe also lndlcaLed LhaL many of
Lhese aspecLs were approved/
processed by oLher offlclals - Shrl
8hanoL, Shrl Ak MaLLoo and Shrl
!eyachandran. ln our vlew, Lhe
resldenLlal vlslL was known well ln
advance, and Lhere should have been no
occaslon for such emergenL" acLlon.
aymenL of 1273(8s. 0.96 lakh) was
also purporLedly made ln cash by Shrl
Mahlndroo Lo AM lllms for unrelaLed
posLage/ sLaLlonery servlces, whlch
appears unusual.
AM Car and van Plre LLd. was hlred for
dlverse and unconnecLed servlces, lncludlng
power generaLlon and vldeo equlpmenL
(lncludlng LLu), moblle LolleLs, barrlers and
flrsL ald provlslon. We found LhaL Lhls
agency was hlred on Lhe basls of a proposal
by Shrl Mahlndroo on 20 CcLober 2009,
who sLaLed LhaL he had learnL abouL Lhe
flrm durlng hls vlslL Lo London ln SepLember
2009 Lhrough Lhe Plgh Commlsslon of lndla
and Lhe Mayor's Cfflce. Shrl Mahlndroo's
clalm was false, as he had earller uLlllsed
Lhe servlces of Lhe agency ln AugusL 2009.
lurLher, Lhe selecLlon of a LransporL
soluLlons company for varlous evenL
managemenL servlces lacks credlblllLy.
10.3.3.2 Plrlng of Servlces of AM Cars

and van Plre LLd.
7
8
9
lot btooJeJ boses ooJ toxls, ttoospott setvlces ooJ
otbet setvlces (bottlets, tollets etc.)
Oc lofotmeJ tbe westmlostet clty cooocll tbot AM lllms
(ooJ oot AM cots ooJ voo nlte ltJ.) boJ beeo blteJ fot
ptovlJloq tbese setvlces. 1bls wos eltbet mlslofotmotloo
ot loJlcoteJ tbot tbe two eotltles wete lJeotlcol ot tbe
some.
1be coottoctot of ltosot 8bototl, tbe nost 8tooJcostet
fot cwC-2010.
aymenLs of 238,093 (8s.1.79 crore) were
made for Lhese servlces as follows:
Lven before Lhe agency submlLLed Lhree
7
lnvolces for 100,623 (8s. 73.47 lakh)
on 21sL CcLober 2009, Lhe paymenLs
were processed and uC and Chalrman's
approval was obLalned on 20 CcLober
2009 lLself, Lhe paymenL was Lransferred
Lo Lhe accounL of AM lllms uk LLd. (and
noL AM Cars and van Plre LLd.) on 22
8
CcLober 2009 . 1hls paymenL lncluded
49,803 (8s. 37.33 lakh) for power
generaLlon purporLedly requlred by SlS
9
Llve , buL no correspondence wlLh SlS-
Llve was documenLed.
A subsequenL paymenL of 36,612
(8s. 27.46 lakh) was made on 26
CcLober 2009, on a proposal by Shrl
Mahlndroo whlch was processed for
paymenL by Shrl !eychandran afLer a
Lalk wlLh Lhe Chalrman".
A cash paymenL of 100,836 (8s.73.64
lakh) was made by Shrl Mahlndroo,
purporLedly for varlous servlces and
works. 1here seems Lo be no reason for
such large cash paymenLs, excepL Lo
avold a LransacLlon Lrall.

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Ceremony. 72 small plaques were Lo be
supplled, buL only 32 plaques had been
Laken Lo sLock, Lhere are no records of
acLual dlsLrlbuLlon of Lhese plaques.
lurLher, only a paymenL of 8s. 3 lakh had
been pald Llll uecember 2010.
10.S.S Cther M|sce||aneous Lxpend|ture
|ncurred by Shr| Mah|ndroo
28,301 (8s. 21.23 lakh ) on mlscellaneous
lLems, lncludlng food bllls, alcohol charges,
Chalrman's parLy, phone charges, Llps Lo
hoLel sLaff eLc. and also expendlLure wlLhouL
documenLed [usLlflcaLlon and/or reasons.
lncldenLally, Shrl !eychandran and Shrl
Mahlndroo drew advances of 63,000
(8s. 48.73 lakh) each from Lhe CC. AlLhough
Lhey had submlLLed Lhelr ad[usLmenL bllls ln
uecember 2009 and lebruary 2010
respecLlvely, Lhese had noL yeL been seLLled.
8esldes Lhe above paymenLs, Shrl
Mahlndroo also lncurred expendlLure of
10.6 Cpen|ng and C|os|ng Ceremon|es
We note that the ceremon|es were w|de|y apprec|ated, |n part|cu|ar, the open|ng
ceremony was a spectacu|ar success. Cur concerns, as descr|bed be|ow, focus on de|ayed
p|ann|ng, |ack of assurance that funds were expended econom|ca||y, and numerous
|nstances of non-comp||ance w|th procedures to ensure due d|||gence and transparency.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1here were huge delays ln plannlng for Lhe
openlng and closlng ceremonles.
1he mannlng of Lhe Ceremonles
luncLlonal Area commenced only ln
!anuary 2008 (agalnsL Lhe orlglnal
10
deadllne of CcLober 2006), and no
personnel from Lhe Ceremonles lA
formed parL of Lhe delegaLlon Lo
Melbourne CWC-2006.
1he process for engagemenL of Lhe
lnLernaLlonal consulLanL and Lhe evenL
managemenL flrm was suspended by
Lhe CC ln uecember 2008 on Lhe orders
of M?AS (slnce Lhe CoM had sLarLed
examlnlng Lhls lssue), and resLarLed only
ln May 2009 (afLer Lhe appolnLmenL of a
CreaLlve ulrecLor ln llne wlLh Lhe CoM's
dlrecLlons).
1he flrsL creaLlve concepLs for Lhe
openlng and closlng ceremonles were
presenLed only ln SepLember and
uecember 2009 respecLlvely, agalnsL Lhe
sLlpulaLed Llmellne of CcLober 2008.
10.6.1 De|ays |n p|ann|ng

lor handllng Lhe openlng and closlng
ceremonles, mulLlple seLs of agencles were
appolnLed:
Shrl 8haraL 8ala CanapaLhy was engaged
ln lebruary 2009 as Lhe CreaLlve
ulrecLor on Lhe recommendaLlon of a
11
panel of experLs (lncludlng Shrl 8haraL
8ala hlmself) consLlLuLed by Lhe CoM.
lrom november 2009, he was
appolnLed as CreaLlve ConsulLanL",
SpecLak roducLlons (headed by Mr. 8lc
8lrch) was engaged ln SepLember 2009
as Lhe lnLernaLlonal consulLanL for
ceremonles,
WlzcrafL was appolnLed ln uecember
2009 as Lhe LvenL ManagemenL llrm,
and
17 consulLanLs (one lndlan and 16
lnLernaLlonal) were appolnLed for Lhe
perlod beLween lebruary and uecember
2010 for varlous servlces.
1here was conslderable overlap beLween
Lhe roles and responslblllLles of Lhese
mulLlple agencles, as summarlzed below:
10.6.2 Cver|app|ng ro|es of agenc|es

ko|e of Shr| 8harat 8a|a ko|e of Spectak roduct|ons (Shr| k|c 8|rch)
(hase I - Creat|ve D|rector
Iebruary - Cctober 2009)
Ideat|on and deve|opment of
creat|ve concept for open|ng
and c|os|ng ceremon|es
(hase II - Creat|ve
Consu|tant - November 2009
- Cctober 2010)
Adv|ce and work for overa||
deve|opment of concept
theme
AdequaLe supporL for plannlng of creaLlve
sLory/ boards/ scrlpLs and deslgns, loglsLlcs
and producLlon plans/schedules (lncludlng
audlo-vlsual, sound/muslc, llghLlng, props,
decor, aerlal rlgglng, pyroLechnlcs eLc.)
along wlLh Llmely and hlgh quallLy
lmplemenLaLlon of all creaLlve and
producLlon aspecLs of Lhe ceremonles.
Pelp Lo access Lhe mosL approprlaLe LalenL,
Lechnology and speclallsL consulLanLs and
conLracLors from across Lhe world.
rovlde Llmely advlce Lo ensure LhaL Lhe
preparaLlons and dellvery of ceremonles
are meLlculously planned.
8enderlng Lhe servlce of
creaLlvely enhanclng,
coordlnaLlng, organlzlng,
produclng, dlrecLlng,
managlng, execuLlng and
successfully dellverlng Lhe
openlng and closlng
ceremonles.
Sourclng ceremonles
procuremenL for Lechnlcal
arrangemenLs, performers
and oLher creaLlve
elemenLs.
ko|e of W|zcraft
1oble 10.2 - Ovetlopploq toles of Jlffeteot oqeocles
10
11
As loJlcoteJ lo tbe Ceoetol Otqoolsotloo lloo of tbe Oc.
1be otbet membets wete 5btl IoveJ Akbtot, 5btl ltosooo Iosbl ooJ 5btl 5byom 8eoeqol.
10.6.3 Lngagement and erformance
of Shr| 8harat 8a|a
We found LhaL no conLracL, speclfylng hls
scope of work and Lerms of remuneraLlon,
was slgned wlLh Shrl 8haraL 8ala from
lebruary 2009 Llll lebruary 2010. Shrl
8haraL 8ala unllaLerally declded hls own
scope of work for Lhe flrsL phase. Shrl
8haraL 8ala also unllaLerally deLermlned hls
own remuneraLlon:
lnlLlally ln !une 2009 aL 8s. 40 lakhs per
monLh from May Lo AugusL 2009 and 8s.
10 lakh per monLh LhereafLer, and
8evlsed ln !uly 2009 Lo 8s. 30 lakhs per
monLh from May Lo AugusL 2009 and 8s.
12.30 lakh per monLh LhereafLer.
Pe was pald a LoLal of 8s. 3.09 crore Llll
CcLober 2010 (lncludlng an advance
paymenL of 8s. 0.23 crore).
As agalnsL Lhe orlglnal Llmellne of AugusL
2009, Shrl 8haraL 8ala presenLed Lhe
creaLlve concepLs for Lhe openlng and
We also noLlced LhaL Lhe worklng

relaLlonshlp beLween Shrl 8haraL 8ala (who
was appolnLed on Lhe dlrecLlons of CoM)
and Lhe oLher agencles - WlzcrafL, SpecLak
roducLlons and oLher consulLanLs were
ofLen dlscordanL. CC's documenLaLlon
reveals complalnLs by Mr. 8lc 8lrch abouL
Lhe lack of llve sLage experlence of Shrl
8haraL 8ala. We are unable Lo commenL on
Lhe dlfferlng percepLlons of Mr. 8lc 8lrch
and Shrl 8haraL 8ala as Lo Lhelr
performance/ experlence on Lhe basls of
avallable records.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
12
Ooly loJloo coosoltoot
Consu|tant Work
Mark I|sher
|ers Shepperd
Durham Marengh|
Laurence Lstr|n
Andrew Garrod
Iames Lee
Ian 8a|dw|n
Scott W|||sa||en
Sarah Grubb
C|a Me|z|g
Stage Safe
Aaron Ie|ker
k|chard nartman
knut Stockhusen
12
L|nus Lopez
Stage Cne
Laura 1hatcher
roducLlon ueslgner
1echnlcal ulrecLor
LlghLlng ueslgner
CommunlcaLlons ueslgner
AssoclaLe 1echnlcal ulrecLor
roducLlon 8lgglng
1echnlcal SysLems Manager
Audlo ueslgner
MasLer Scheduler
1echnlcal ulrecLor
PealLh & SafeLy ConsulLanL
CAu Manager
Scenlc Lnglneerlng and Scenlc 8lgglng Manager
8oof Loadlng SLudy
ower ConsulLanL
8lgglng consulLanL
Show Caller
1he need for a mu|t|p||c|ty of agenc|es
w|th ro|es, wh|ch are pr|ma fac|e
over|app|ng, |s not c|ear, we found
|nstances of Shr| 8harat 8a|a render|ng
adv|ce on areas w|th|n the rem|t of
W|zcraft. At best, two agenc|es - one as
a consu|tant] adv|sor, and another for
execut|on (on a turnkey bas|s) cou|d be
[ust|f|ed.
10.6.S Lngagement of W|zcraft as
Lvent Management I|rm
We found LhaL:
1he Lenderlng process was lnlLlaLed ln
SepLember 2008, suspended ln
uecember 2008, and resLarLed ln May
2009. AfLer evaluaLlon ln AugusL 2009,
Lhe conLracL wlLh WlzcrafL was slgned
only ln uecember 2009.
1he scope of work of WlzcrafL was noL
adequaLely clear, as CC also appolnLed
oLher consulLanLs and conLracLors,
whose scope of work fell wlLhln Lhe
same areas as lndlcaLed ln WlzcrafL's
scope of work.
no mllesLones were lndlcaLed ln Lhe
scope of work, and Lhe schedule of
paymenLs was noL llnked Lo dellverables.
ln Lhe LCl, Lhe conLracL was Lo be glven
on a Lurnkey basls on Lhe llnes of
Melbourne CWC-2006, Lhls was
changed Lhrough a corrlgendum lssued
on 30 SepLember 2008. ln Lhe 8l, Lhe
LvenL ManagemenL llrm was noL Lo geL
agency commlsslon on procuremenL
done by CC dlrecLly. Powever, ln Lhe
conLracL, CC agreed Lo pay a flxed
ceremonles managemenL fee of 8s. 3.40
crore and evenL agency charges on a
slldlng scale dependlng on Lhe
procuremenL amounL, (even on CC's
dlrecL procuremenLs) whlch evenLually
amounLed Lo 8s. 16.09 crore. 1hls
paLLern of remuneraLlon was on Lhe
10.6.4 Lngagement of Spectak

roduct|ons (Mr. k|c 8|rch )
14
We found LhaL:
Clobal Lenderlng procedures were noL
followed for engagemenL of Lhe
lnLernaLlonal consulLanL,
1he Lenderlng process commenced wlLh
an LCl ln SepLember 2008, was
suspended ln uecember 2008 (on Lhe
dlrecLlons of M?AS), and resLarLed ln
May 2009. AfLer evaluaLlon ln !uly 2009,
an Lol was lssued ln SepLember 2009 Lo
SpecLak roducLlons for 8s. 10.33 crore
and Lhe agreemenL slgned ln uecember
2009.
1he performance guaranLee obLalned
from SpecLak roducLlons was faulLy, as
lL could be lnvoked only wlLh lLs prlor
approval. ConsequenLly, CC was
unsuccessful, when ln uecember 2010
(afLer a revlew), lL Lrled Lo lnvoke Lhe
performance guaranLee.

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
closlng ceremonles only ln SepLember 2009
and uecember 2009 respecLlvely. lurLher,
Lhe creaLlve concepL for Lhe openlng
ceremony was largely a rearrangemenL of
ldeas presenLed by WlzcrafL ln AugusL 2009
(as parL of Lhe Lechnlcal evaluaLlon for Lhe
13
evenL managemenL flrm ).
We are noL clear abouL Shrl 8haraL 8ala's
role ln hase-ll as CreaLlve ConsulLanL -
advlce and work for overall developmenL
of concepL and Lheme", when Lhe creaLlve
concepLs had already been presenLed and
an evenL managemenL flrm (WlzcrafL)
appolnLed Lo dellver Lhe ceremonles.
13
14
5btl 8botot 8olo wos pteseot Jotloq tbe tecbolcol
evolootloo.
cO, 5pectok ltoJoctloos
CC favoured SpecLak roducLlons by
agreelng Lo Lake on Lhe servlce Lax
llablllLy of 8s. 1.06 crore (when Lhe 8l
clearly lndlcaLed LhaL Lhe consulLanL was
Lo lndlcaLe cosLs lncluslve of all Laxes).
10.6.6 Inappropr|ate Lngagement of
Cther Consu|tants
for submlLLlng a creaLlve proposal for
Lhe CWC-2010 ceremonles,
lL was undersLood LhaL SpecLak was
provldlng Lhelr consulLlng servlces Lo
WlzcrafL, and
Should WlzcrafL be appolnLed as Lhe
producer for Lhe ceremonles, Lhey
conflrmed Lhelr avallablllLy and
wllllngness Lo parLlclpaLe ln Lhe creaLlve
producLlon group.
lurLher, Lhe webslLe of SpecLak roducLlons
also lndlcaLes LhaL Mr. 8lc 8lrch and 10
SpecLak conLracLors provlded servlces for
CWC-2010.
CC appolnLed 17 oLher consulLanLs for

varlous ceremony-relaLed acLlvlLles for Lhe
perlod lebruary Lo uecember 2010, 8s. 6.12
1S
crore had been pald Llll lebruary 2011 Lo
Lhese consulLanLs. 16 ouL of Lhese 17
consulLanLs were appolnLed on nomlnaLlon
basls (largely on Lhe advlce of Mr. 8lc 8lrch
and LvenL ManagemenL llrm), wlLh one
consulLanL appolnLed Lhrough llmlLed
Lender.
Cur revlew of Lhe LCl documenLs submlLLed
by WlzcrafL revealed LhaL flve of Lhese
consulLanLs (Mr. lers Shepperd, Mr.
uurham Marenghl, Mr. Mark llsher,
Mr. Laurence LsLrln and Mr. 8lchard
ParLman) had addressed consenL leLLers
daLed 1 !une 2008 Lo Mr. 8lc 8lrch, whereln
Lhey lndlcaLed LhaL:
1hey would provlde Lhelr servlces on an
excluslve basls Lo SpecLak roducLlons
llnes of Melbourne CWC-2006.

Powever, CC dld noL follow Lhe Lurnkey
buslness model followed aL Melbourne,
and appolnLed sLaff/ consulLanLs and
made procuremenLs on Lhelr own.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1S
llool poymeots wete yet to be moJe to two coosoltoots.
In our v|ew, the event agency charges
of ks. 16.09 crore to W|zcraft were not
[ust|f|ed. CC's response that W|zcraft
was prov|d|ng 8Cs, draw|ng up scope
of work, and sourc|ng vendors] art|sts
etc. |s not tenab|e, s|nce these
act|v|t|es were undertaken by Shr|
8harat 8a|a, Spectak roduct|ons and
the other 17 consu|tants engaged by
the CC.
1h|s correspondence |nvo|v|ng Mr. k|c
8|rch (Spectak roduct|ons) and the
add|t|ona| consu|tants (w|th references
to W|zcraft's ro|e) took p|ace on 1 Iune
2008, wh||e the LCIs resu|t|ng |n
appo|ntment of Spectak roduct|ons
and W|zcraft were |ssued on|y |n
September 2008. We conc|ude that:
Mr. k|c 8|rch and W|zcraft had a
h|gh |eve| of conf|dence of be|ng
awarded the contracts for the
CWG-2010 ceremon|es, and had
t|ed up w|th other experts we|| |n
advance. Inc|denta||y, the other
respondents to the LCI d|d not
|nd|cate ev|dence of such t|e-ups.
Nexus between Mr. k|c 8|rch
(Spectak roduct|ons),
W|zcraft and other
consu|tants
10.6.7 1heme song
10.6.8 Mus|c Composer and D|rector
Shrl A8 8ehman was engaged for composlng
and performlng Lhe Lheme song for Lhe
Cpenlng Ceremony. 1he Lheme song was
launched on 28 AugusL 2010 and Lhe vldeo
shooL compleLed only on 11 SepLember
2010, as agalnsL Lhe conLracLual daLe of 13
AugusL 2010 for release aL a press
conference. 1hls delay resulLed ln lack of
adequaLe exposure and publlclLy for Lhe
Lheme song. no acLlon could be Laken for
Lhe delay, due Lo absence of penal
provlslons ln Lhe conLracL.
CC engaged Shrl 8an[lL 8aroL as muslc
composer and dlrecLor for a Lurnkey
soluLlon for Lhe openlng and closlng
ceremonles aL a LoLal cosL of 8s. 1.73 crore
plus Laxes. ConLrary Lo Lhe lasL 1rack
CommlLLee's dlrecLlon, CC dld noL obLaln
Lhe cosL break-up for each sequence, nor
dld lL consLlLuLe a negoLlaLlon commlLLee.
lurLher, we noLlced overpaymenL of 8s.
0.18 crore Lo Shrl 8aroL, CC also lncurred
expendlLure of 8s. 0.73 crore for royalLy and
llcense fees for muslc (whlch should have
been borne by Shrl 8aroL).
lurLher, Lhe Lerms and condlLlons of Lhe
conLracLs wlLh Lhe 16 forelgn consulLanLs
dld noL safeguard CC's lnLeresLs:
1he mandays Lo be spenL on-slLe ln lndla
were noL provlded ln 10 cases, and Lhere
was no formal sysLem of perlodlc
monlLorlng and reporLlng ln all cases.
We found Lhree speclflc lnsLances of
overlapplng scope of work - show
caller/ sLage manager, rlgglng manager,
and masLer scheduler - beLween Lhe
consulLanLs and SpecLak roducLlons,
WlzcrafL and anoLher consulLanL.
no performance relaLed provlslons were
lncorporaLed ln any of Lhe conLracLs
(desplLe CClC's recommendaLlons),
whlch prevenLed CC from Laklng
adequaLe acLlon ln !une 2010 agalnsL
Mr. Shepperd and Mr. Marenghl.
lurLher, no clauses regardlng refund of
advances (for breach of conLracL or non-
dellvery of servlces) were lncorporaLed,
consequenLly, CC could noL Lake acLlon
agalnsL four consulLanLs, who reslgned
mld-way.

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
16
wbo wos polJ 5 102,700 (ks. 0.46 ctote)
12 ouL of 17 conLracLs dld noL speclfy
Lhe llablllLy for servlce Lax, CC flnally
bore Lhe llablllLy for servlce Lax of 8s.
0.32 crore. ln Lhe case of Mr. Mark
llsher, CC falled Lo deducL servlce Lax of
8s. 1.23 lakh.
We also found overpaymenLs of 8s. 0.43
crore Lo Mr. Shepperd and Mr. Marenghl, as
well as an unexplalned reducLlon ln Lhe
16
scope of work of Mr. Andrew Carrod on 4
CcLober 2010.
expressed the|r w||||ngness |n

Iune 2008 to work for W|zcraft,
were appo|nted by the CC |n
2010. Lv|dent|y, the cost of
engag|ng these consu|tants was
to be pa|d by W|zcraft, and not by
the CC. CC shou|d not have
appo|nted these add|t|ona|
consu|tants, and the|r
engagement at a cost of at |east
ks. 6.12 crore amounted to a
c|ear f|nanc|a| benef|t to W|zcraft.
1hese consu|tants, who
10.6.9 rocurement of accessor|es]
spec|a| |tems
ln order Lo presenL specLacular openlng and
closlng ceremonles, CC enLered lnLo varlous
conLracLs for accessorles/ speclal lLems. We
found LhaL Lhe Lenderlng/ award process ln
mosL of Lhese conLracLs were deflclenL,
deLalls are summarlzed below.
10.6.9.1 Plrlng of AerosLaL
10.6.9.2 yroLechnlc suppller
AfLer Lhe ldea of Lhe band sLand was
dropped, Mr. Mark llsher presenLed a
deslgn for an aerosLaL ln !anuary 2010. A
Lurnkey conLracL for Lhe aerosLaL was
awarded Lo k-LvenLs aL a cosL of t 3.87
mllllon (8s. 33.81 crore). We found LhaL
Mr. 8lc 8lrch had clalmed LhaL afLer havlng
surveyed 31 agencles for dlfferenL aspecLs
19
of Lhe aerosLaL , k-LvenLs was Lhe only
respondenL. lurLher, Mr. 8lc 8lrch falsely
clalmed LhaL he had no corporaLe or
commerclal relaLlonshlp wlLh k-LvenLs, ln
facL, SpecLak roducLlons and k-LvenLs were
parL of Lhe same group, Lhe lllmmasLer
Croup.
lurLher, CC showered oLher undue favours
on k-LvenLs:
lL hlred Lwo consulLanLs and equlpmenL
for Lhls work and pald 8s.2.23 crore, and
addlLlonally spenL 8s. 0.23 crore for
expenses on cusLoms duLy and elecLrlc
generaLor, as well as necessary
approvals, Lhese were wlLhln Lhe remlL
of Lhe Lurnkey conLracL awarded Lo k-
LvenLs,
CC also provlded undue beneflLs worLh
8s. 1.13 crore on accounL of Lravel,
accommodaLlon and oLher charges.
lurLher, one ouL of Lhe flve parLs (sausages)
of Lhe aerosLaL was noL uLlllzed for Lhe
ceremony.
CC hlred Poward & Sons ln !une 2010 as Lhe
pyroLechnlc suppller aL a cosL of uS$ 0.73
mllllon (8s. 3.38 crore). We found LhaL Lhe
suppller was selecLed Lhrough a llmlLed

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
17
18
Mt. Motk llsbet boJ otteoJeJ two cteotlve wotksbops
bosteJ by 5btl 8botot 8olo, be wos olso ooe of tbe
coosoltoots, wbo sobmltteJ o cooseot lettet to Mt. klc
8ltcb to wotk wltb wlzctoft fot cwC-2010.
1be ptoposol wos, post-CoM opptovol, temltteJ to tbe
Oclc, wbo tefoseJ to commeot oo lt ot tbot stoqe.
19
No evlJeoce of socb commoolcotloos wltb tbese 51
oqeocles wos ovolloble oo tecotJ.
W|th the approva| of GCM, CC engaged
Mark I|sher Stud|o, London |n Cctober
2009 at a fee of USD S14,000 exc|ud|ng
taxes (ks. 2.31 crore) for prov|d|ng
arch|tectura| des|gns and draw|ngs for
a centre stage pav|||on (band stand) |n
the ILN Stad|um for the open|ng
ceremony.
We found that Mark I|sher Stud|o was
engaged d|rect|y by the LMC (w|thout
CCIC's approva| ).
Subsequent|y, Mr. Mark I|sher
managed to get
h|s scope of work rev|sed to cover
on|y "pre||m|nary" des|gns and
draw|ngs", rather than comp|ete
des|gns and draw|ngs, and
rev|sed terms for 100 per cent
payment |n advance.
When the GoM dec|ded |n December
2009 to d|spense w|th the bandstand,
fu|| payment had a|ready been made,
the CLC's efforts to subsequent|y
rev|ew the work done by Mr. Mark
I|sher were unfru|tfu|.
17
18
Consu|tant for 8and Stand
Lender lssued Lo flrms recommended by Mr.
8lc 8lrch, conLrary Lo Lhe lasL 1rack
20
CommlLLee's dlrecLlon for an open Lender ,
Also, we found excess paymenL of 8s. 0.23
crore on accounL of non-ad[usLmenL of
frelghL charges.
CC awarded a conLracL for llghLlng and
searchllghL Lo 8C, 8elglum aL a cosL of uS$
3.3 mllllon (8s. 13.73 crore). We found LhaL
Lhe Lenderlng/ award process was lrregular:
LlmlLed Lenderlng was adopLed, conLrary
Lo Lhe recommendaLlons of Lhe lasL
1rack CommlLLee for open Lenderlng.
lurLher, Lhe flrms for Lhe 8l were
recommended by Lhe 1echnlcal ulrecLor
(Mr. lers Shepperd) and noL Lhe llghLlng
deslgner (Mr. uurham Marenghl).
10.6.9.3 LlghLlng and SearchllghL

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
20
lotet lo Motcb 2010 Oclc oqteeJ fot llmlteJ teoJet.
1he lasL daLe for submlsslon of Lhe bld

was exLended on 8C's requesL, as Lhey
had noL prepared Lhe bank drafLs for
processlng fee and LMu.
1he conLracL was orlglnally envlsaged as
Lwo separaLe 8ls for llghLlng and
searchllghL, buL a slngle conLracL was
awarded on Lhe basls of a posL-bld
proposal by 8C for a composlLe
conLracL. Powever 8C dld noL provlde
Lhe deLalls of Lhe equlpmenL, Lhey were
golng Lo supply.
1he Lechnlcal evaluaLlon was faulLy, as
anoLher bldder, 8elAo LvenLs, Chlna
wlLh relevanL experlence was Lechnlcally
dlsquallfled Lhrough lncorrecL
evaluaLlon.
Dub|ous 1echn|ca| Lva|uat|on of L|ght|ng and
Search||ght kIs to favour kG
Cur rev|ew of the papers re|at|ng to term|nat|on of the serv|ces of Mr. Durham
Marengh| |nd|cated an e-ma|| from Mr. Durham Marengh| to a kG off|c|a|, who then
comp|a|ned to the CC aga|nst Mr. Marengh|'s attempt to "fr|ghten" them.
In h|s e-ma||, Mr. Marengh| a||eged:
v|gorous efforts by W|zcraft to rate kG as top of the ||st, and mark down another
b|dder (Agora) for the ||ght|ng kI,
kG fa|||ng to meet the b|d requ|rements for the search||ght kI.
Mr. Marengh| then |nd|cated that he and kG cou|d then "p/oy our co//oborotion cord.
so thot Oc hos their preferred one stop shop" and W|zcraft "hod their obvious/y
preferred compony in p/oce". Mr. Marengh| a|so offered to "ossure everyone of the
obso/ute inteqrity of Pk6's octions in ue/hi" |f kG sub-h|red a part of the contract from
the other b|dder, Agora, "which wou/d keep them from fee/inq oqqrieved".
Mr. Marengh| a|so drew reference to the need to be "especio//y squeoky c/eon os we
heod towords the infinite/y po/itico//y correct procurement process thot we wi// find in
the uk {2012 O/ympic) 6omes opportunities cominq up soon."
Cn the bas|s of kG's comp|a|nt (enc|os|ng Mr. Marengh|'s e-ma||), the CC term|nated
Mr. Marengh|'s contract.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
21
22
1o be ptojecteJ oo tbe oetostot
wbo boJ jost beeo owotJeJ o composlte coottoct fot llqbtloq ooJ seotcbllqbt.
We also found oLher lnsLances of undue
favour by Lhe CC Lo 8C:
lrregular paymenL of t 223,000 (8s. 1.37
crore) Lo 8C on accounL of damage Lo
equlpmenL, alLhough rlsk lnsurance for
such evenLuallLles was conLracLually
8C's llablllLy,
ShorL-deducLlon of 1uS of uS$ 1.13
mllllon (8s. 3.09 crore), conLrary Lo Lhe
advlce of CC's CA, and
rovlslon of 136 alr fllghLs free of cosL,
lnsLead of 60 (as conLracLually
sLlpulaLed).
21
We found Lhe CC lrregularly awarded a
conLracL of 8s. 3.8 crore for vldeo conLenL Lo
rlme locus (Lhe L-3 bldder), afLer
negoLlaLlons wlLh Lhem, on Lhe basls of Shrl
8haraL 8ala's sLrong bellef ln hls
capablllLles", Lo reduce Lhelr raLes Lo Lhe L-1
raLes. lncldenLally, no Lenders were floaLed,
and only proposals glven by WlzcrafL were
evaluaLed.
10.6.9.4 vldeo ConLenL

10.6.9.3 Audlo SysLems
CC awarded Lhe conLracL for audlo sysLems
aL a cosL of uS$ 1.13 mllllon (8s. 3.17 crore)
Lo norwesL roducLlon and Sound.Com. We
found Lhe award process Lo be lrregular:
AlLhough an open 8l was sLaLed Lo
have been lssued ln !une 2010, Lhe
successful C bld was noL avallable on
record,
norwesL submlLLed Lwo opLlons ln lLs
bld, one as per CC's crlLerla and Lhe
oLher on alLernaLlve crlLerla. uurlng
evaluaLlon, CC revlsed lLs crlLerla and
opLed for Lhe alLernaLe opLlon glven by
norwesL, Lhus selecLlng norwesL and
22
noL 8C who was L1 as per CC's 8l
crlLerla, and
Whlle Lhe work was awarded Lo norwesL
Lhrough Lenderlng, Lhe conLracL was
slgned wlLh norwesL and Sound.com
and paymenLs were equally dlvlded
beLween Lhem.
Subsequent|y, CC re-eva|uated the se|ect|on of kG. nowever, the re-eva|uat|on

comm|ttee, cons|st|ng of Shr| San[|v M|tta|, IDG (rocurement), Shr| kUk keddy, DDG
(I&A), Shr| Ieyachandran, IDG (I&A), Shr| kam Mohan, DDG (Lega|), Ms Indu Anand
D|rector (Ceremon|es) and representat|ve of W|zcraft found the se|ect|on of kG to be
correct. Interest|ng|y, the comm|ttee re-eva|uated the contract for ||ght|ng (wh|ch was
the ma|n focus of Mr. Marengh|'s e-ma||) and not the search||ght contract.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Appo|ntment of Shr| Cmung kumar (8|ue Lotus roduct|ons)
as supp||er of props for ceremon|es
CC engaged Shr| Cmung kumar (8|ue Lotus roduct|ons) as Art D|rector for the open|ng
and c|os|ng ceremon|es and manufactur|ng of props. 1he proposa| for appo|ntment of
Shr| Cmung kumar was |n|t|ated on the recommendat|on of W|zcraft, Mr. k|c 8|rch and
Shr| 8harat 8a|a, a separate tender process for manufactur|ng of props was scrapped at
the commerc|a| eva|uat|on stage. 1he scope of work was f|na||zed |n Apr|| 2010 w|th
Shr| Cmung kumar, bypass|ng the Iast 1rack Comm|ttee, wh|ch was cons|der|ng th|s
|ssue. In|t|a||y, CC s|gned a turnkey contract for ks. 11 crore p|us taxes (for props and art
d|rect|on for the open|ng ceremony) |n Iu|y 2010. Subsequent|y, Shr| kumar was g|ven
add|t|ona| work and props for ks. 1.4S crore p|us taxes, contrary to the pr|nc|p|e of a
"turnkey contract". 1h|s was further expanded on 10 Cctober 2010 to cover props of
ks. 4.04 crore p|us taxes for the c|os|ng ceremony (wh|ch was [ust four days away).
1he props |nc|uded veh|c|es of d|fferent categor|es, ownersh|p for wh|ch was not
transferred |n CC's name. Iurther, props worth ks. 3.09 crore for the c|os|ng ceremony
and ks. 0.36 crore for the open|ng ceremony rema|ned unut|||zed. In add|t|on, props
worth ks. 2.38 crore were not rece|ved at a||.
We a|so not|ced that the props procured from 8|ue Lotus roduct|ons were exorb|tant|y
pr|ced, as |s |||ustrated be|ow:
A||
these works were awarded w|thout an approved ||st of props requ|red. 1he need for
such h|gh vo|umes of expend|ture on props |s, thus, quest|onab|e.
DESCRIPTION OF PROPS AND PRICES CHARGED
od|um (ks.S0000]- per p|ece)
o|o C|rc|es (not used) - [ust a p|y p|ece
covered w|th c|oth (ks.1342S]- per p|ece)
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Ashok Chakra pa|nted on c|oth
(4 metres d|ameter) (ks. 1S0000]-)
|acard for each CGA
(ks.3S21]- per p|ece)
Sugarcane 1ruck
(ks.10 |akh)
Ch|nese fan
(ks. 11,000 per p|ece)
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Mob||e f|ag ho|der - Used to ho|d the f|ags
for a|| CGAs (ks.22S4]- per p|ece)
Gar|and w|th stand used as a show p|ece
(ks. 46833]- per p|ece)
8ang|es for Namaste
(ks.22,9S0- per p|ece)
1|ff|n trays for dabbawa|as
(ks.8,141]- per p|ece)
M||k Churn w|th 8|cyc|e
(ks. 8,000 per set)
Chagada - Gu[arat| sty|e
(ks. 2.S|akh)
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Sma|| truck (1ata 407-1996 mode|) ks.4.47 |akh
Car (Ambassador-2001 Mode|) ks.3.4S |akh
1hough Lhe L8 asked CC Lo dlspose off Lhese props by selllng Lhem ln order Lo earn revenue,
Chalrman CC approved Lhe proposal for handlng over Lhe props and cosLumes Lo arLlsL and
schoolchlldren.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
10.6.10 Ground rotect|on and restorat|on IC
CC lncurred a LoLal expendlLure of 8s. 17.84
crore on varlous forms of proLecLlve
coverage for Lhe ground aL !Ln SLadlum for
Lhe openlng and closlng ceremonles. 1hls
lncluded:
8s. 7.87 crore on procuremenL of
ground proLecLlon (Lemporary floorlng
Llles Lo Lake heavy loads),
8s. 2.71 crore on ground cloLh (Lhlck
carpeLs) for Lhe openlng and closlng
ceremonles, and
8s. 7.26 crore for rolllng ouL grass Lurf
replacemenL for Lhe lleld of lay ln Lhe
sLadlum (where grass had lnlLlally been
lald by CWu aL a cosL of 8s. 0.40 crore).
We found LhaL Lhe need for mulLlple forms
of ground proLecLlon was noL adequaLely
[usLlfled. ln addlLlon:
1he area Lo be covered was flxed afLer
Lhe 8l were lssued, Lhls area was
subsequenLly reduced and even Lhe
reduced supply (of ground proLecLlon
Llles and ground cloLh) was uLlllsed only
23
parLlally (leavlng 4300 Llles worLh
8s. 2.02 crore as well as 16 rolls of

ground cloLh worLh 8s. 0.20 crore,
unuLlllsed).
Cround cloLh for Lhe closlng ceremony
was merely opLlonal, buL Lhe CC sLlll
wenL ahead wlLh procuremenL.
lurLher, Lhe procuremenL of all Lhese lLems
was lrregular:
rocuremenLs were done wlLhouL
followlng global Lenderlng and also noL
provldlng adequaLe Llme for bldders Lo
respond.
1he ground proLecLlon conLracL was
lnlLlally floaLed on hlrlng basls ln March
2010. CuL of Lhree quallfled blds, Lhe L-1
bldder (SlgnaLure lenclng and lloorlng
SysLems) and L-2 bldder (SlgnaLure
lenclng [olnLly wlLh !ubllee SporLs
1echnology LLd.) were essenLlally Lhe
same. AfLer Lhe L-1 bldder wlLhdrew lLs
offer for 8s. 7.87 crore (purporLedly
|n ILN Stad|um (lcLure 1aken 1 March 2011)

Ground C|oth C|os|ng ceremony Ly|ng Ground c|oth Cpen|ng ceremony Ly|ng
|n ILN Stad|um (lcLure 1aken 1 March 2011)
23
1be otlqlool tepoltemeot of qtoooJ tlles of 2J,000 sp.
metet wos teJoceJ to 16,900 sp. metet, bot ooly oo oteo
of 11,970 sp. metet wos coveteJ.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Unused Ground rotect|on 1||es (March 2011)
because lL refused Lo bear Lhe
wlLhholdlng Lax), Lhe scope of work was
reduced (from 23,000 sq. meLer Lo
16,900 sq. meLer) and awarded ln !une
2010 Lo L-2 (slnce !ubllee SporLs agreed
Lo bear Lhe Lax). 1hen, !ubllee SporLs
refused Lo bear Lhe Lax, and Lhe conLracL
was awarded on procuremenL basls Lo
8s. 7.87 crore Lo SlgnaLure lenclng.
lncldenLally, SlgnaLure lenclng supplled
only one layer of ground proLecLlon
(agalnsL Lhe conLracLed Lhree layers of
proLecLlon)
1he ground cloLh conLracLs for Lhe
openlng and closlng ceremonles were
awarded on Lhe basls of slngle
responses Lo Ceolabrlcs, uk and LallL
ArL SLudlo aL cosLs of uS$ 387,693
(8s. 1.74 crore) and 8s.0.97 crore.

lurLher, LallL ArL SLudlo supplled ground
cloLh of Lhe wrong colour (whlLe agalnsL
black and sand colour), buL CC accepLed
Lhe cloLh.
CC awarded Lhe conLracL for rolled grass
Lurf replacemenL ln !une 2010 aL 8s.
7.26 crore Lo PorLus ConsulLanLs LLd,
afLer re-Lenderlng. ln addlLlon, CC also
awarded a servlce agreemenL for 8s.
0.48 crore ln SepLember 2010 Lo supply
waLer proof membrane for levelllng of
ground and fllllng of sand for Lhe lleld
of lay, whlch was acLually Lhe
responslblllLy of CWu. 1here was no
evldence LhaL CWu refused Lo
underLake Lhls work.
C
n
A
1
L
k
Cater|ng
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
11
Oc wos responsib/e for providinq coterinq services ot the 6omes vi//oqe ond venues for
oth/etes ond teom officio/s, c6l/ c64 officio/s, vlPs, technico/ officio/s ond medio persons,
vo/unteers, workforce, controctors ond spectotors.
we found inexp/icob/e de/oys in p/onninq for coterinq services, os we// os in the execution
of vorious coterinq-re/oted octivities. 1he coterinq controcts for cw6-2010 were oworded
on/y between Moy ond 4uqust 2010, in controst to the scenorio for Me/bourne cw6-200
ond London O/ympics 2012 where these were oworded more thon o yeor in odvonce.
1here were numerous irrequ/orities in the oword of the 6omes vi//oqe coterinq controct.
1he process of oword took 14 months, with two rounds of tenderinq, both on sinq/e
finoncio/ bids. 1he conce//otion of the first tender by the choirmon, Oc wos not on/y
oqoinst the recommendotions of Oc officio/s, but wos o/so done ofter openinq the sinq/e
finoncio/ bid on the choirmon's verbo/ orders. 1his decision to re-tender weokened the
Oc's neqotiotion position vis-o-vis the vendors ond resu/ted in frontic octivity upto lune
2010 for conc/usion of four seporote controcts/ oqreements.
1he process for oword of venue coterinq controcts wos o/so f/owed, with unusuo/ de/oys.
1his witnessed one round of conce//otion of tenders, ond f/ootinq of three new klPs os /ote
os lu/y 2010, with compromises on tronsporency, quo/ity ond economy {due to insufficient
competition). consequent/y, there were numerous comp/oints obout the venue coterinq
services, resu/tinq in emerqency orronqements durinq the 6omes time.
We found LoLally lnexpllcable delays ln
plannlng for caLerlng servlces:
1he caLerlng funcLlonal area ln Lhe CC
was acLlvaLed only ln !anuary 2009
(agalnsL Lhe orlglnal deadllnes of !une
2007) wlLh Lhe appolnLmenL of an
AsslsLanL ro[ecL Cfflcer.
1he flrsL drafL operaLlonal plan for
caLerlng was prepared only ln March
2009, also, a comparlson of Lhe
sequence of acLual caLerlng-relaLed
acLlvlLles vls-a-vls Lhe operaLlonal plan
revealed subsLanLlal devlaLlons, ralslng
serlous doubLs as Lo Lhe acLual
lmplemenLaLlon of Lhe plan.
CaLerlng for all Lhe under menLloned

caLegorles of persons was an acLlvlLy whlch
was solely Lhe mandaLe of Lhe CC.
aLhleLes and Leam offlclals,
CCl/CCA offlclals and vls,
Lechnlcal offlclals and medla persons,
volunLeers, workforce, and conLracLors,
and
specLaLors.
11.1 |ann|ng for Cater|ng

Serv|ces
ChapLer 11 - CaLerlng
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CaLerlng requlremenLs were dlvlded lnLo 11
Lender packages, based on Lhelr locaLlon,
slze and scope -
one for CaLerlng for Lhe Cames vlllage
(CCv),
elghL for clusLers of venues, and
Lwo for non-venues (alrporL/
lnLernaLlonal 8roadcasLlng CenLre).
LCl were lssued ln !une 2009 for all 11
Lender packages, Lhe Cames vlllage package
was processed flrsL. 1he 8ls for Lhe oLher
10 packages were sLaggered.
11.2 Contrast between

CWG 2010 and
Me|bourne 2006 and
London C|ymp|cs 2012
11.3 Award of Cater|ng for
Games V|||age (CGV)
Contract
1he caLerlng conLracLs for CWC-2010 (CcL
2010) were awarded only beLween May and
AugusL 2010. 8y conLrasL, Lhe conLracLs for
Melbourne CWC-2006 (Mar 2006) were
awarded ln lebruary 2003. 1he conLracLs for
Lhe London Clymplcs 2012 (!uly 2012) have
already been awarded ln lebruary 2011.
Cnly one Lle-up beLween Lhe caLerlng
conLracLs and sponsors ln Lhe caLerlng area
could be arrlved aL, due Lo Lhe enormous
delays and uncerLalnLles ln flnallsaLlon of
conLracLs for boLh sponsorshlp and caLerlng.
8y conLrasL, Lhe roles of Lhe Clymplc
sponsors (Mcuonalds, Coca-Cola and
Cadbury) vls-a-vls oLher caLerlng servlce
provlders (lncumbenL and fuLure) for
London-2012 were clearly ldenLlfled as early
as ln uecember 2009.
As per Lhe PCC, Lhe CC was Lo provlde a
varleLy of meals Lo all aLhleLes, round Lhe
clock, ln Lhe Cames vlllage. 1he food ln Lhe
Cames vlllage was Lo be prepared Laklng
lnLo conslderaLlon Lhe speclal needs of hlgh
performance aLhleLes, as well as naLlonal
and rellglous hablLs and LradlLlons of Lhe
compeLlLors. More Lhan 8000 aLhleLes and
offlclals were expecLed Lo sLay ln Lhe Cames
vlllage and Lo have food Lhere. 1he caLerlng
conLracL was envlsaged ln Lwo parLs:
arL A - for provlslon of caLerlng
servlces, and
arL 8 - for klLchen deslgn and
consLrucLlon
Inexp||cab|e De|ays |n award|ng Cater|ng for Games V|||age Contract

1he process of award of caLerlng conLracLs for Lhe Cames vlllage Look an unduly long 14 monLhs
from !une 2009 Lo !uly 2010 ([usL 3 monLhs before Lhe Cames) wlLh delays aL every sLage, a
deLalled chronology ls lndlcaLed ln Annexe-11.1:
Issue of
LCI
!une 2009
Issue of
kI
CcLober 2009
Lva|uat|on
of b|ds
november
2009
Dec|s|on to
re-tender
!anuary 2010
ke-tender|ng
negot|at|on
and
f|na||sat|on
May 2010
Award|ng
of k|tchen
|nsta||at|on
contract
!uly 2010
llqote 11.1 - AwotJ of Comes vllloqe cotetloq coottoct
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
AlLhough four bldders were Lechnlcally
quallfled (afLer evaluaLlon of responses
Lo Lhe !une 2009 LCl), only one parLy -
uelaware norLh Company AusLralla
1
(unC) submlLLed a flnanclal bld .
We found serlous deflclencles ln Lhe
Lenderlng/ award process:
Clobal Lenderlng, requlrlng lssue of
adverLlsemenL ln Lhe lndlan 1rade
!ournal and consulLaLlon wlLh lndlan
embassles abroad and forelgn
embassles ln lndla, was noL followed aL
any sLage.
uest|onab|e Dec|s|on by Cha|rman to re-tender

1he Lva|uat|on Comm|ttee not|ced that DNC had not subm|tted the LMD w|th |ts
techn|ca| b|d, but st||| dec|ded to cont|nue w|th techn|ca| eva|uat|on. 1he Comm|ttee
recommended, |n December 2009, condonat|on of non-subm|ss|on of LMD and open|ng
of the commerc|a| b|d. 1he CLC recommended L8 approva| for such condonat|on.
nowever, on verba| orders of the Cha|rman on 11 December 2009, the commerc|a| b|d
of DNC was opened.
A month |ater, on 12 Ianuary 2010, the Cha|rman ordered re-tender|ng, due to non-
2
subm|ss|on of LMD . Desp|te SDG Cater|ng's adv|ce of 13 Ianuary 2010 that such re-
tender|ng wou|d take about 3-4 months w|th d|sastrous consequences and a
subsequent e-ma|| from 19 Ianuary 2010 from DNC conf|rm|ng that |t was comm|tted to
depos|t|ng the LMD, the dec|s|on to re-tender was commun|cated to DNC on 2 Iebruary
2010. CC |nformed (December 2010) us that the Cha|rman was requested repeated|y
for |mmed|ate dec|s|on on the DNC b|d, but "due to reasons known to h|m" dec|ded to
re-tender the contract.
1h|s was based on a reversa| of op|n|on by Shr| Ieychandran, IDG (I&A) and Shr| kam
Mohan, DDG (Lega|) (who were part of the eva|uat|on comm|ttee recommend|ng
condonat|on), now agree|ng w|th the Cha|rman's dec|s|on to retender. CLC's d|rect|on
to subm|t th|s dec|s|on for CCIC's cons|derat|on was rebutted by the v|ews of Shr|
Ieychandran and Shr| kam Mohan that the Cha|rman was the competent author|ty.1he
dec|s|on was never put up for the approva| of e|ther the L8 or the CCIC.
As descr|bed be|ow, the dec|s|on to re-tender un|eashed frant|c act|v|ty between March
and Iune 2010 for tender|ng, negot|at|on and conc|us|on of four separate contracts]
agreements - w|th DNC for cater|ng, kL for procurement of k|tchen equ|pment,
8a|mer-Lawr|e for a|r||ft|ng of k|tchen equ|pment, and Conste||at|on-Aster for k|tchen
|nsta||at|on and add|t|ona| equ|pment. At th|s stage, every de|ay (howsoever m|nor)
weakened the negot|at|ng pos|t|on of the CC, |eav|ng |t at the mercy of vendors.
In a separate response, Shr| ka|mad| |nd|cated that |t was |ncumbent on the CC to re[ect
the b|d |n the ||ght of non-subm|ss|on of LMD, and there was no occas|on to seek the
approva| of the L8 for enforcement of st|pu|ated tender|ng cond|t|ons, hence, h|s
dec|s|on was not quest|onab|e. We do not agree, for the reasons |nd|cated above.
1
2
lo coosottlom wltb 1oj5A15 ooJ lkl looJoo
As olteoJy poloteJ oot (Aooexe 7.J l), lo tbtee otbet ptevloos coottocts, tbe Oc took o coottoty posltloo by cooJooloq tbe
ooo-sobmlssloo of Mu.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
a cosL of 8s. 8.39 crore Lhrough 8almer-
Lawrle.
CC awarded a separaLe conLracL ln !une
2010 for purchase of addlLlonal
equlpmenL and lnsLallaLlon of klLchen
equlpmenL purchased from kL Lo a
consorLlum of ConsLellaLlons and AsLer
1echnologles. A Llme llmlL of [usL 10 days
(whlch was noL exLended) was provlded
for submlsslon of blds. lurLher,
ConsLellaLlon dld noL quallfy on lLs
sLrengLh, AsLer 1echnologles, whose role
was noL lndlcaLed ln Lhe bld, was
evldenLly lncluded only Lo meeL Lhe
crlLerla of annual Lurnover of 8s. 13
crore. lncldenLally, Shrl Sunll khanna,
who was appolnLed ln May 2010 as a
consulLanL ln Lhe CC's CaLerlng
luncLlonal Area, was already assoclaLed
wlLh AsLer 1echnologles, Lhls clear
confllcL of lnLeresL was noL documenLed
before award of Lhe conLracL. Shrl
khanna reslgned from Lhe CC on 13
3
!une 2010 clLlng hls assoclaLlon wlLh
AsLer 1echnologles. lL appears LhaL hls
sole lnLeresL ln Lhe CC was Lo faclllLaLe
award of Lhe conLracL Lo Lhe
ConsLellaLlons - AsLer 1echnologles
consorLlum.
1he klLchen was ulLlmaLely handed over
by Lhe CC Lo unC only on 9 SepLember
2010 (as agalnsL Lhe conLracLually
sLlpulaLed daLe of 13 AugusL 2010). CC
aLLrlbuLed Lhls delay Lo uuA's fallure Lo
hand over Lhe klLchen area ln Llme.
ln response, CC accepLed LhaL tbe Jeclsloo
mokloq ootbotlty kept oo postpooloq tbe
Jeclsloo. 1be metty qo toooJ of tbe 5lc-
AfLer re-Lenderlng ln lebruary 2010,

only one bldder (unC) was found
Lechnlcally quallfled, and lLs flnanclal bld
opened on 26 March 2010 (ln Lhelr
presence). Powever, on 30 March 2010,
unC sLaLed LhaL kL, Lhelr parLner for
klLchen deslgn and consLrucLlon had
refused Lo parLlclpaLe (Joe to
ftosttotloos ooJ coocetos oboot Oc's
ptocesses ooJ ptoceJotes to meet
JeoJlloes") and asked CC Lo dlrecLly
negoLlaLe wlLh kL (whlle also sLresslng
LhaL only kL should be appolnLed as
Lhe equlpmenL suppller).
We dld noL flnd evldence of a valld
consorLlum beLween unC and kL/
1a[SA1S (whose sLaff sLrengLh was
lncluded ln unC's bld documenL Lo meeL
Lhe manpower requlremenLs sLlpulaLed
ln Lhe 8l). lurLher, Lhe re-evaluaLlon of
Lechnlcal blds afLer change ln scope of
work (removal of klLchen deslgn and
consLrucLlon) was noL done. uesplLe
several deflclencles ln Lhe unC bld, CC
had no cholce buL Lo go ahead wlLh Lhe
conLracL wlLh unC, nor was lL able Lo
enforce any penal measures agalnsL
unC for suddenly backlng ouL from parL
of Lhe bld. 1hls was because Lhe
sequence of delays had lefL CC wlLh no
opLlons ln Lhls regard.
CC separaLely negoLlaLed wlLh kL, who
offered only ouLrlghL purchase of Lhe ex-
hlre (used) klLchen equlpmenL (raLher
Lhan hlre), whlch was done ln May 2010.
AL Lhls sLage, CC was ln a weak
negoLlaLlng poslLlon, whlch was
explolLed by unC and kL.
uue Lo Lhe delayed flnallsaLlon of Lhe
klLchen equlpmenL conLracL wlLh kL,
CC was forced Lo alrllfL Lhe klLchen
equlpmenL ln !uly 2010 from London aL
3
5btl kboooo potpotteJly joloeJ oo 24 Moy 2010.
nowevet, tbe beoJ of Oc's wotkfotce looctloool Ateo
loJlcoteJ tbot be leotot of 5btl kboooo's jololoq ooly oo
bls teslqootloo.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
ptompt Jeclsloo wos oevet o sttooq polot
wltb Oc".
1he flnanclal lmpllcaLlons of Lhe numerous
changes ln Lhe Cames vlllage CaLerlng
ConLracL are summarlsed below:
ln response, CC lndlcaLed LhaL Lhere would
be subsLanLlal savlngs of 8s. 9.4 crore on Lhe
unC conLracL. AlLhough Lhe 327,227 meals
provlded exceeded Lhe esLlmaLe of 480,433
meals, Lhere were savlngs on accounL of
overhead charges on acLual basls, offlce
space provlded by Lhe CC and value-ln-klnd
(vlk) sponsorshlp from Coca Cola.
Mc-8-Mc-cboltmoo-8 took o beovy toll
oo ptecloos tlme." CC also agreed LhaL a
prompL declslon ln Aprll 2010 could have
ensured LransporLaLlon Lhrough shlpplng
lnsLead of alrllfLlng, buL sLaLed LhaL tokloq
lrom Lhe avallable documenLaLlon, we are
unable Lo explaln how Lhe purchase prlce of
equlpmenL from kL (8s. 8.63 crore), even
afLer clubblng wlLh Lhe ConsLellaLlons/ AsLer
conLracL (8s. 9.30 crore), was lower Lhan Lhe
correspondlng componenLs of unC's
orlglnal and revlsed flnanclal blds (whlch
were on hlre basls).
November 2009 March 2010 May - Iu|y 2010 December 2010 (ayments)
DNC's OrIgInaI
FInancIaI BId
Part A -
Rs. 52.20 crore
Part B -
Rs. 1S.95 crore
DNC's RevIsed
FInancIaI BId
ParL A -
Rs. 57.96 crorc
ParL B -
Rs. 21.10 crorc
Contract wIth
DNC - Rs. 66.59 crorc
Procurement from PKL -
Rs. 8.63 crorc
Contract wIth
ConsteIIatIons/ Aster -
Rs. 9.50 crorc
AIrIIftIng of kItchen
equIpment by BaImer
LawrIe - Rs. 8.59 crorc
Rs.57 crorc
Rs.8.63 crorc
Rs. 9.50 crorc
Rs.8.59 crorc
V|ew of the d|n|ng area |n the Games V|||age
1oble 11.1 - lloooclol lmpllcotloo of cbooqes to Comes vllloqe cotetloq coottoct
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
4
e.q. Atomotk, tbe lotqest fooJ cotetet lo tbe u5, wblcb
ptovlJeJ cotetloq setvlces ot tbe 8eljloq Olymplcs 2008
JlJ oot sbow ooy lotetest, eveo ot tbe Ol stoqe.
k|tchen equ|pment |y|ng |n packed cond|t|on post-Games
CC has sLlll noL been able Lo elLher dlspose of Lhe klLchen equlpmenL or Lransfer/ redeploy lL Lo a
CovernmenL/ seml-CovernmenL body or lnsLlLuLlon. We recommend LhaL Lhe CC and M?AS Lake
lmmedlaLe acLlon on Lhls accounL, as Lhe value of such equlpmenL ls conLlnuously depreclaLlng wlLh
Llme. Meanwhlle Lhe equlpmenLs are lylng ln Lhe Cames vlllage.
In our op|n|on, the |ack of adequate
compet|t|on for the Games V|||age
Cater|ng Contract from organ|zat|ons w|th
requ|s|te g|oba| exper|ence and
4
credent|a|s |s strange, to say the |east.
DNC was the on|y tru|y e||g|b|e b|dder
w|th g|oba| exper|ence |n both rounds of
tender|ng and |t was, |n a sense, |nev|tab|e
that the contract wou|d be awarded to
DNC w|thout f|nanc|a| compet|t|on.
Irom the documentat|on made ava||ab|e
to us, we found no ev|dence of CC
systemat|ca||y hav|ng |dent|f|ed the |arge
g|oba| p|ayers who had re|evant
exper|ence over the |ast 10 years or so, or
hav|ng encouraged such p|ayers to
respond to the LCI (so as to promote
adequate compet|t|on). Lack of
compet|t|on was further accentuated by
the CC's de|ays |n p|ann|ng and tender|ng]
approva|, wh|ch |eft ||tt|e t|me
both for the cater|ng agency to f|na||se
|ts operat|ona| and |og|st|ca| p|ans and
for the CC to scout around for
a|ternat|ves.
11.4 Cater|ng at venues and
non-venues
AlLhough a common LCl was lssued ln !une
2009 for Lhe Cames vlllage package and Len
oLher caLerlng packages (8 venue clusLers
and 2 non-venue clusLers), Lhe 8ls for Lhe
Cames vlllage package and Lhe oLher
packages were Lo be lssued ln a sLaggered
manner", purporLedly Lo ensure proper
framlng of Lhe Scope of Work. 1hls merely
ensured more delay for Lhe venue and non-
venue clusLers, 13 ouL of 16 bldders were
quallfled, and 8ls lssued Lo Lhem only ln
uecember 2009.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1he process of award of caLerlng conLracLs
for Lhe venue/ non-venue clusLers Look an
even longer 13-16 monLhs from !une 2009
Lo AugusL/ SepLember 2010, wlLh several
fllp-flops, a deLalled chronology of evenLs ls
llsLed ln Annexe 11.2.
ln our vlew, Lhe delays and frequenL
changes are lndlcaLlve of compleLe ad
hoclsm:
1he 8l for venues/ non-venues was
lssued ln uecember 2009, a full slx
monLhs afLer Lhe LCl, purporLedly Lo
ensurlng proper framlng of Lhe scope of
work. Powever, Lhe lasL daLe for
submlsslon of blds Lo Lhe 8l was
exLended Lwlce due Lo changes ln
LemplaLes and Lhe slze of Lhe work,
lndlcaLlng exLremely poor esLlmaLlon of
requlremenLs,
ln Lhe flrsL round of blddlng, l8C1C
S
submlLLed blds for all venue clusLers ,
wlLh four oLher bldders for selecLed
clusLers,
1he flrsL aLLempL by Lhe Chalrman, CC Lo
cancel Lhe Lenderlng process Look place
ln March 2010 afLer Lhe Lechnlcal
evaluaLlon, when he lndlcaLed LhaL
many repuLed flrms llke l1uC had noL
parLlclpaLed. Powever, Lhe commerclal
evaluaLlon was allowed Lo proceed on
Lhe SuC CaLerlng's advlce LhaL delays
would escalaLe cosL and make lL dlfflculL
Lo meeL deadllnes,
MulLlple rounds of negoLlaLlons were
carrled ouL over Lhree monLhs (Aprll-
!une 2010) wlLh Lhe flve bldders for Lhe
clusLers where Lhey were L-1. 1he LoLal
esLlmaLed expendlLure came down from
8s. 77.94 crore Lo 8s. 68.46 crore.
llgure 11.2 - Award of caLerlng

conLracLs for venue/ non-venue clusLers
Inexp||cab|y, cater|ng for spectators at
venues was not p|anned spec|f|ca||y as a
revenue generat|on act|v|ty, and was
c|ubbed w|th other cater|ng serv|ces
(wh|ch were cost centres, to be pa|d for
by the CC). Iurther, the scope and range
of cater|ng serv|ces for spectators and
others (and consequent|y the poo| of
potent|a| serv|ce prov|ders) were qu|te
d|fferent, th|s was a|so not cons|dered at
the p|ann|ng stage.
LCI |ssued
!une 2009
Issue of kI
uecember 2009
Lva|uat|on
March - Aprll 2010
Negot|at|ons w|th
IkC1C-Chef A|r fa||ed
!uly 2010
Award of Contracts
AugusL / SepLember 2010
Cance||at|on of tenders
L8 dec|s|on for award to IkC1D-Chef
Alr !une 2010
Negot|at|ons
Aprll - !une 2010
3 separate kIs for
venues (aLhleLes and offlclals)
Work force and voluenLeers
lood sLalls for specLaLors
!uly 2010
S
1bete wete oo blJs ot oll fot tbe two ooo-veooe clostets.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1he resulLs of Lhese negoLlaLlons were

nulllfled ln !une 2010, when Lhe
Chalrman suggesLed cancellaLlon of all
Lenders and nomlnaLlon of l8C1C-Chef
Alr, whlch was endorsed by Lhe L8, and
AfLer negoLlaLlons, Lhough l8C1C agreed
for a LoLal amounL of 8s. 43.83 crore, CC
declded ln !uly 2010 noL Lo accepL Lhe
l8C1C offer and floaL new 8ls. AL Lhls
polnL of Llme, Shrl !l[l 1homson SuC
CaLerlng clearly expressed hls sLrong
ob[ecLlon Lo floaLlng new 8ls wlLh
dlluLed ellglblllLy crlLerla and servlce
levels (whlch would resulL ln Laklng on
board conLracLors wlLh no proven
experlence ln caLerlng Lo such mega
evenLs) and requesLed LhaL he be
relleved of Lhe responslblllLy of Lhe
CaLerlng luncLlonal Area, as he wanLed
6
Lo dlsLance hlmself from such a move .
SubsequenLly, Lhe responslblllLy for Lhls
funcLlonal area was handed over Lo Shrl
San[lv MlLLal, !uC (rocuremenL) (wlLh
SuC CaLerlng Lo conLlnue Lo supervlse"
Lhe work), and new 8ls were floaLed.
6
lotetestloqly, tbls flle wos tetotoeJ by tbe cboltmoo's
Offlce ooly lo uecembet 2010 to tbe cotetloq looctloool
Ateo.
7
1be MOu loJlcoteJ tbe Jote of poymeot of tbe secooJ
lostollmeot os 2J 5eptembet 2010, wblcb boJ olteoJy
elopseJ.
CaLerers for supply and dlsLrlbuLlon of
food packeLs Lo workforce, volunLeers,
securlLy personnel aL all venues (excepL
Lhe Cames vlllage).
1he 8ls provlded [usL 6-10 days Llme for
blddlng, Lhus resLrlcLlng parLlclpaLlon (as
polnLed ouL by SuC CaLerlng).
11.S I|oat|ng of three "new"
kIs |n Iu|y 2010
1hree separaLe 8ls were lssued on 19 and
24 !uly 2010 for appolnLmenL of:
Agency for operaLlng food sLalls for
provldlng food and beverages Lo
specLaLors as user pay servlce" aL 8
venue clusLers,
CaLerers for all lounges (for aLhleLes,
offlclals and vls) ln compeLlLlon and
Lralnlng venues, and
11.S.1 Agency for operat|ng food sta||s

for spectators
ln AugusL 2010, CC selecLed lasL 1rax, whlch
was Lhe P-1 bldder offerlng 8s. 0.93 crore
for all elghL venue clusLers, as Lhe agency
for operaLlng food sLalls for provldlng food
and beverages Lo specLaLors. 1he Mou was
slgned only on 27 SepLember 2010 and was
7
badly drafLed .
In|t|a||y, the kI st|pu|ated subm|ss|on
of |ab test reports for the |ast three
months, th|s was re|axed to subm|ss|on
of food safety cert|f|cates (nACC] ISC
22000) |n ||eu thereof. Iurther, Iast
1rax's b|d for cater|ng at the |ounges (for
ath|etes, off|c|a|s and VIs) and
prov|s|on of food packets for workforce
and others was re[ected due to non-
subm|ss|on of nACC cert|f|cate. In fact,
Iast 1rax's offer of Va|ue-|n-k|nd
sponsorsh|p of ks. 8 crore for food
packets was re[ected on th|s account.
C|ear|y, wh||e the CC was unw||||ng to
comprom|se on food safety standards
for the Games Iam||y (and assoc|at|on of
the Games brand w|th non-nACC
agenc|es for such cater|ng), |t d|d not
accord the same pr|or|ty to food safety
for spectators.
Safety of Iood for Spectators
CC fo||owed an arb|trary approach |n th|s
process. In the f|rst round, Seven Seas was
awarded a c|uster on s|ng|e b|d, but IkC1C
d|d not rece|ve the same cons|derat|on for
three c|usters where |t was a s|ng|e b|dder.
Instead of negot|at|ons w|th a|| s|ng|e
b|dders for reduc|ng the costs, CC evo|ved
an unusua| and |rregu|ar pract|ce of "snap
b|ds", wh|ch |nvo|ved comp|ete |ack of
transparency.
Interest|ng|y, wh||e the cater|ng rates for
the |ounges for ath|etes and techn|ca|
off|c|a|s ranged from ks. 4S0 to ks. 600 per
head per day, the correspond|ng rates at
the |ounges for the VIs and Games Iam||y
ranged from ks. 1190 to ks. 23S6.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
crore, 8s. 0.78 crore and 8s. 1.38 crore
respecLlvely.
AddlLlonal work of provldlng hoL meals
Lo aLhleLes and Leam/ Lechnlcal offlclals
for lawn bowls venues was awarded Lo
Cravlss aL 8s. 0.36 crore.
1he enLlre amounL was Lo be pald ln

advance - 23 per cenL on slgnlng of Lhe
Mou, 30 per cenL by 23 SepLember 2010,
and 23 per cenL by 2 CcLober 2010.
Powever, as of uecember 2010, CC had
recelved only 8s. 0.38 crore. ln response,
CC lndlcaLed Lhey were Laklng legal
recourse for recovery of Lhe balance
amounL.
8
lost Jote of sobmlssloo of blJ
11.S.2 Caterers for Lounges at Compet|t|on
and 1ra|n|ng Venues
We found slgnlflcanL deflclencles ln Lhe

Lenderlng process for caLerlng for lounges:
lor Lwo venue clusLers - 1 and 2,
mulLlple blds were recelved, and Lhe
conLracLs were awarded by Lhe lasL
1rack CommlLLee Lo Lhe L-1 bldders -
Cravlss PosplLallLy and l8C1C, aL 8s. 3.2
crore and 8s. 1.7 crore respecLlvely. lor
clusLer 4, a slngle bld was recelved from
Seven Seas aL 8s. 2.0 crore and
accepLed. Powever, l8C1C's slngle blds
for clusLers 3, 7 and 8 (aL 8s. 1.40 crore,
8s. 0.80 crore and 8s. 3.2 crore) were
re[ecLed on belng found very
expenslve". ClusLers 3 and 6 recelved no
blds, buL recelved fresh blds for 8s. 1.90
crore and 1.20 crore from Cravlss (under
a new clause of rlghL of flrsL refusal" for
Lechnlcally quallfled bldders evolved by
Lhe CommlLLee), Lhese were, however,
re[ecLed.
1he CommlLLee cancelled Lhe blddlng
for clusLers 3,3,6,7 and 8, and called for
snap blds" ln 24 hours from Lhe same
Lhree bldders (l8C1C, Cravlss and Seven
Seas). AfLer Lhls round of snap blddlng",
clusLer 6 was awarded Lo Cravlss aL 8s.
0.74 crore, and clusLers 3,3,7 and 8 Lo
Seven Seas aL 8s. 1.20 crore, 8s. 0.90
11.S.3 Caterer for supp|y and d|str|but|on
of food packets
CuL of seven responses, CC found flve flrms

Lechnlcally quallfled and awarded Lhe work
Lo Lhe L-1 bldder, Al ManufacLurlng Co.
vL. LLd (a manufacLurer of namkeen, snacks
and bakery producLs), aL a cosL of 8s. 8.73
crore. Powever, we found LhaL Al
ManufacLurlng was lnellglble and was
lrregularly quallfled by Lhe CC:
1hey dld noL provlde deLalls of caLerlng
processes, equlpmenL deLalls,
manpower, LransporL, klLchen
equlpmenL eLc., as sLlpulaLed ln Lhe 8l.
lnsLead, Lhey submlLLed an MCu daLed
8
30 !uly 2010 wlLh Co-ordlnaLors, who
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
also dld noL provlde such deLalls buL
merely lndlcaLed a llsL of recenL cllenLs.
1he PACC cerLlflcaLe for Al
ManufacLurlng was for Lhelr unlL aL
8hlwadl, manufacLurlng namkeen and
bakery producLs and noL for any caLerlng
servlces. 1hls lssue was flagged by Lhe
caLerlng consulLanL and SuC CaLerlng.
SubsequenLly, Al submlLLed an PACC
cerLlflcaLe for hosplLallLy and caLerlng
for LkLa ShakLl loundaLlon, a body
under Lhe umbrella" of Al wlLh
experlence of supplles for Lhe Mld-day
9
Meal Scheme .
CC's fallure Lo examlne Al ManufacLurlng's
capablllLy for such large scale caLerlng
servlces before awardlng Lhe work Lo lL
resulLed ln LoLal chaos. Al's base klLchen
was noL found saLlsfacLory durlng CC's
lnspecLlon on 23 SepLember 2010. lurLher,
CC's esLlmaLlon of Lhe requlremenL of
meals also wenL up by more Lhan 100 per
cenL, and Al was found lncapable of
servlng such large requlremenLs. Al also
lndlcaLed Lhelr lnablllLy Lo provlde packed
lunch and dlnner before 1 CcLober 2010. CC
was forced Lo make alLernaLe arrangemenLs:
LngagemenL of 19 new caLerers (ln Lwo
phases),
LngagemenL of kohlnoor loods for
10
reLorL food as a back-up soluLlon,
use of vehlcles and manpower of Al,
and
8uffeL soluLlon (along wlLh on-slLe
packlng) aL !Ln SLadlum, and provlslon
of dry snacks from Al.
9
10
8y coottost, lost 1tox wos JecloteJ loellqlble fot woot of
tbe nAccl cettlflcote.
looJ lo o flexlble seoleJ poocb ot pockoqe wblcb coo be
stoteJ fot looq petloJs wltboot spollloq
8es|des add|t|ona| expend|ture of ks.
4.23 crore, the arrangements for
cater|ng for the work force turned out to
be chaot|c, w|th numerous comp|a|nts
about non-serv|ce and unhyg|en|c food
from var|ous categor|es of users.
Inc|denta||y, CC had engaged 1S for
food aud|ts at a|| |ocat|ons at a cost of
0.88 crore. A|though the food aud|t
reports were ava||ab|e on CC's records,
there were numerous comp|a|nts about
food qua||ty. Iurther, food aud|t of the
base k|tchens of some of the caterers
cou|d not be conducted, as even IDG]
SDG Cater|ng were not aware, t||| the
|ast m|nute, of the source of food supp|y
for each venue.
11.6 Cater|ng at A|rport
CaLerlng aL Lhe alrporL orlglnally consLlLuLed
ClusLer 11 aL Lhe sLage of Lhe lnlLlal LCl of
!une 2009. 1hls aspecL was noL consldered
subsequenLly Llll 20 SepLember 2010, when
Lhe need for provldlng meals aL Lhe alrporL
from 23 SepLember 2010 Lo guesLs and
workforce was flagged. AfLer dlscusslons
wlLh uelhl lnLernaLlonal AlrporL LLd. (ulAL),
CC appolnLed Lwo exlsLlng caLerers aL Lhe
alrporL - remlum orL Lounge
ManagemenL and Clobal CourmeL - ouL of
Lhe flve caLerers suggesLed by ulAL. CC
lncurred a LoLal expendlLure of 8s. 0.73
crore for caLerlng aL Lhe alrporL.
C
n
A
1
L
k
1echno|ogy
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1Z
5uccessfu/ orqonisotion of the 6omes required severo/ inteqroted technico/ so/utions - o
1iminq, 5corinq ond kesu/ts {15k) system, o 6omes Monoqement 5ystem {6M5), o 6omes
1ime website, ond supportinq l1, te/ecom ond network infrostructure.
1he 15k system is required for copturinq ond disseminotinq the detoi/ed resu/ts of o
competition. we found thot p/onninq for 15k wos bod/y de/oyed ond initioted on/y in
lonuory 2009. 1he tenderinq ond oword {inc/udinq re-tenderinq) process took on
unusuo//y /onq period of 1l months from Morch 2009 to Morch 2010. 1here wos on
obnormo/ six months qop between the 1st Ol in Morch 2009 ond the issue of the klP {for
the 2nd tender) in October 2009. 1here were c/eor ond repeoted interventions ot different
stoqes to steer the 15k controct towords 5wiss 1iminq Omeqo ond e/iminote M5L, 5poin.
1he techno/oqy consu/tont recommended oword of the controct on nominotion bosis
to 5wiss 1iminq Omeqo.
1he klP {for the 2nd tender) fovoured 5wiss 1iminq Omeqo by stipu/otinq experience in
4sion 6omes, cw6 or O/ympics durinq the /ost five yeors with "end-to-end service",
this wos further omended to chonqe the service requirements from "1iminq, 5corinq
ond/or kesu/ts" to "1iminq 5corinq ond kesu/ts".
M5L, 5poin wos irrequ/or/y disquo/ified ot the P stoqe, overru/inq objections from
two members of the vo/uotion committee. M5L, 5poin ond 5wiss 1iminq Omeqo hod
joint/y provided 15k so/utions for Me/bourne cw6-200, uoho 4sion 6omes-200 ond
8eijinq O/ympics 2008. 8oth M5L ond 5wiss 1iminq Omeqo were equo//y quo/ified /
unquo/ified os to the "end-to-end service requirement" or the requirement to provide
1iminq, 5corinq ond kesu/ts. lurther, the foct thot M5L hod been oppointed for
providinq 15k for 2010 4sion 6omes 6uonqthou wos not considered.
Oc wos thus /eft with o sinq/e finoncio/ bidder, effective/y e/iminotinq ony opportunity for
competitive pricinq of 15k. 1his foci/itoted oword of the 15k controct to 5wiss 1iminq
Omeqo ot on exorbitont cost of ks. 1l5.27 crore {compored to just ks.l9.84 crore
equivo/ent ot Me/bourne cw6-200 from the some vendor).
1here were severo/ deficiencies in the performonce of 15k. 15k wos not tested either
durinq the test events, or in o reo/-time 6omes situotion. 1he commentory lnformotion
5ystem {cl5) ond remote cl5 did not function proper/y durinq most port of the 6omes. 1he
6omes lnformotion 5ystem {provided os vo/ue-in-kind sponsorship by 5wiss 1iminq
Omeqo) o/so did not function proper/y.
ChapLer 12 - 1echnology
1he oword of the 6omes Monoqement 5ystem {6M5 - the primory l1 opp/icotion for
odministrotion of the 6omes) wos o/so f/owed. 4s in the cose of 15k, the klP conditions
were undu/y restrictive by stipu/otinq experience in 4sion 6omes, cw6 or O/ympics durinq
the /ost five yeors. 1hree out of four bidders were disquo/ified, with M5L, 5poin beinq
e/iminoted throuqh o biosed evo/uotion. nowever, 6o/d Medo/ 5ystems wos dec/ored
e/iqib/e, despite not submittinq ony documentotion in support of its finoncio/ strenqth ond
fino//y oworded the 6M5 controct ot o toto/ cost of ks. 25.29 crore {compored to just ks.
4.15 crore equivo/ent ot Me/bourne-cw6 from the some vendor).
lnexp/icob/y, Oc foi/ed to consider the need for o 6omes 1ime website {the moin lnternet
p/otform for disseminotinq reo/-time informotion on sportinq events durinq the 6omes)
ti// lune 2010. 1he oword of the controct to n1-nunqomo wos f/owed ond irrequ/or. ln the
obsence of bids beinq received in o seo/ed cover, ossocioted comp/oints, ond o cosh
discount {which we connot confirm if it wos received with the bid) mokinq the L-l bidder
into L-1, the oword procedures oppeored to /ock tronsporency. ln oddition to odverse
medio reports obout the website's performonce, the c6l President o/so confirmed serious
prob/ems with the website, documentotion with Oc on this ospect wos, however, sporse
ond unre/iob/e.
ln October 2009, Oc oppointed 1e/ecommunicotions consu/tonts lndio Ltd. {1clL), o P5u, os
o turnkey imp/ementotion oqency for te/ecom, l1 ond networkinq projects ond poid ks.
18. crore. we found thot the enqoqement of 1clL wos unjustified, ond 1clL's controct
wos not imp/emented in turnkey mode {with Oc remoininq in fu// contro/ of opprovo/ of
individuo/ controcts).
lurther, 1clL's consu/tinq services/ odvice wos on/y token in o se/ective monner, ond not
used ot o// for te/ecom services.
Oc hod not proper/y p/onned the decommissioninq of techno/oqy ond l1 equipment.
ks. 21.04 crore of /eosed equipment wos yet to be returned to the vendors, whi/e procured
items were sti// /yinq with the Oc.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Shrl 8rlan nourse prepared Lhe
luncLlonal Area reporL for Lechnology ln
AugusL 2007 on behalf of LkS, and was
subsequenLly appolnLed Lwlce as
ConsulLanL by Lhe CC - from uecember
2007 ln lnLermlLLenL spells, and
conLlnuously from SepLember 2009 Lo
1
CcLober 2010 . Cn boLh occaslons, hls
scope of work was noL clearly deflned,
Llmellnes were noL glven, and paymenLs
were noL llnked Lo achlevemenL of
dellverables.
1he maln Lechnology requlremenLs for
successful sLaglng of Lhe Cames covered:
A 1lmlng, Scorlng and 8esulLs (1S8)
sysLem for capLurlng deLalls of Lhe
resulLs of Lhe sporLlng evenLs, and oLher
assoclaLed sysLems/ modules,
A Cames ManagemenL SysLem (CMS)
for supporLlng admlnlsLraLlon of Lhe
Cames,
A Cames 1lme lnLerneL webslLe for
enabllng publlc access Lo full deLalls of
sporLlng resulLs, and
l1, Lelecom and neLwork lnfrasLrucLure
Lo supporL Lhe above sysLems and
normal offlce auLomaLlon appllcaLlons.
12.1 Cverv|ew of 1echno|ogy

kequ|rements
We found LhaL Lhere was lack of adequaLe
leadershlp, advlce and conLlnulLy for Lhe
1echnology luncLlonal Area:
1here were as many as nlne key persons
assoclaLed wlLh Lhe funcLlonal area aL
dlfferenL polnLs of Llme:
12.2 Management of
1echno|ogy Iunct|ona|
Area
12.3.1 Cverv|ew
1he 1lmlng, Scorlng and 8esulLs (1S8)
sysLem capLures Lhe deLalled resulLs of a
compeLlLlon, boLh durlng and aL Lhe
concluslon of Lhe sesslon, and dlsLrlbuLes
Lhls lnformaLlon, whlle ensurlng conslsLency
ln resulLs, ouLpuLs and graphlcs. An
overvlew of Lhe 1S8 sysLem and lnLegraLlon
wlLh oLher sysLems ls deplcLed below:
12.3 1|m|ng, Scor|ng and
kesu|ts (1Sk) System
eop|e
assoc|ated
Vk Gautam
Sk Dass
Su[|t an|grah|
Sandeep Arya
A[|t S|roh|
Sun|| Arya
narsh kumar
SepLember 2007 Lo
CcLober 2009
!anuary - Aprll 2008
CcLober 2008 -
uecember 2009
november2009 -
uecember 2009
uecember 2009 -
lebruary 2010
lebruary - november 2010
lebruary 2010 Llll daLe
er|od
1oble 12.1 - key petsoos ossocloteJ
wltb 1ecbooloqy looctloool Ateo
1
5btl Nootse's coottoct wos tetmlooteJ by tbe Oc lo
Motcb 2010, lo otJet to eooble blm to commeoce wotk
fot Closqow cwC-2014.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
2
5btl 8booot, bowevet, ooooooceJ ot o meetloq of tbe
ceottollseJ co-otJlootloo commlttee lo uecembet 2008
tbot 5wlss 1lmloq Omeqo woolJ be ptovlJloq tbe 15k
epolpmeot, eveo befote tbe 15k scope of wotk wos
ptepoteJ.
3
1Auu=ks.JJ.20 ( os oo 1.1.2006)
CC procured Lhe 1S8 sysLem from Swlss
1lmlng Cmega aL a cosL of 8s. 112.43 crore
(CPl 2,49,90,000) wlLh an addlLlonal llablllLy
of 8s 22.82 crore for servlce Lax (8s. 11.38
crore) and wlLhholdlng Lax (8s. 11.24 crore).
12.3.2 De|ays |n |ann|ng
We found LhaL plannlng for 1S8 for CWC-
2010 was badly delayed and Lhe flrsL drafL
of Lhe scope of work for 1S8 was prepared
2
only ln !anuary 2009 . 8y conLrasL, plannlng
for 1S8 servlces for London Clymplcs-2012
sLarLed four years ln advance. 1he delays aL
Lhe plannlng sLage were prlmarlly
aLLrlbuLable Lo lack of lnLernal experLlse and
compleLe rellance on Lhe consulLanL.
12.3.3 8udget|ng
1he orlglnal budgeL for 1S8-relaLed acLlvlLles
of 8s. 37.33 crore was lncreased Lo 8s.
109.33 crore by Lhe LlC ln CcLober 2009.
1he LoLal cosL of 1S8 of 8s. 133.27 crore
exceeded Lhe budgeL by 8s. 23.74 crore,
desplLe Lhe absence of any addlLlonal
budgeL alloLmenL / re-approprlaLlon.
llqote 12.1 - Ovetvlew of 15k 5ystem ooJ loteqtotloo wltb otbet systems
ames
|aIarmal|aa
8yslem (|8l
|at|aa|a aat|raaaa
|aIarmal|aa aa eveal,
sjarljersaas
aaa leams
1|m|ag,
8cer|ag
aa kesa|ts
|aleral|aa w|l|
ames News
8erv|te (N8l
aaa raj||ts
|aleral|aa
w|l| ames
Vaaaemeal
8yslem
8tare|resa|l
|aIarmal|aa
Iar stareaaaras
al veaaes
Rea| l|me
Ieea Iar
ames T|me
weas|le
Cammealary
|aIarmal|aa 8yslem
(C|8l|remale C|8
|aIarmal|aa Iar
tammealary aazes al
veaaes aaa aals|ae
veaaes (maaa|e
aI T8Rl
D|sj|ays Iar
jress
tealres||eea
Iar jressjersaas
CC procured the 1Sk system at an
abnorma||y h|gh sum of ks. 13S.27 crore
from Sw|ss 1|m|ng Cmega |n March 2010, as
compared to ks 39.84 crore ( AUD 512
m||||on) spent for Me|bourne CWG - 2006
for procur|ng the system from the same
manufacturer |.e. Sw|ss 1|m|ng Cmega. 1h|s
add|t|ona| cost |s abnorma||y h|gh and ca||s
|nto quest|on the re||ab|||ty of the
contract|ng procedure.
3
Abnorma||y h|gh cost of 1Sk |n
CWG-2010 as compared to
Me|bourne CWG-2006
When the f|na| accounts of the CC are
drawn up, th|s shou|d be treated as a
|oan for account|ng purposes, a|though
the u|t|mate def|c|t w||| necessar||y have
to be borne by GoI.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Crlglnally, 1S8 was envlsaged as a legacy
lLem Lo be procured cenLrally by an agency
Lo be deslgnaLed by M?AS ouL of Lhe budgeL
4
provlslon of venue owners . lL ls only ln Lhe
LlC meeLlng of CcLober 2009 LhaL Shrl vk
verma, uCCC sLaLed LhaL Lhe 1S8
equlpmenL would be on lease ln- lease
ouL" basls. Powever, Lhe budgeL for 1S8 was
sLlll glven as a granL, raLher Lhan a loan.
12.3.4 Award of 1Sk Contract
We found unduly long delays ln Lhe
Lenderlng and award of Lhe 1S8 conLracL:
1here was an abnormally long gap of slx
monLhs beLween Lhe flrsL LCl (March 2009)
and Lhe lssue of 8l (CcLober 2009), whlch
was puncLuaLed only by Lhe consulLanL's
dlscusslon paper (May 2009) maklng a case
for engaglng Swlss 1lmlng Cmega on
nomlnaLlon basls.
llqote 12.2 - uoJoe Jeloys lo teoJetloq ooJ owotJ of 15k coottoct
Such unwarranted and unexp|a|ned
de|ays, part|cu|ar|y at a stage |n
organ|z|ng the Games when shortage of
t|me was a cr|t|ca| concern, suggest
cons|derat|ons other than ensur|ng fa|r
and transparent pract|ces |n award of
the contract wh|ch are borne out by our
f|nd|ngs.
lannlng and lssue
of 1sL LCl
!an-March 2009
1echnlcal and
Commerclal LvaluaLlon
uecember 2009
L8 approval for
Swlss 1lmlng
appolnLmenL
!an-March 2009
LvaluaLlon of
LCl responses
Aprll - May 2009
C evaluaLlon
november 2009
Award of ConLracL
March 2010
ConsulLanL's
8ecommendaLlon for
Swlss 1lmlng Cmega
May 2009
2nd 1ender - lssue
of 8l
CcLober 2009
4
As clotlfleJ lo tbe uecembet 2008 meetloq of tbe
ceottollseJ co-otJlootloo commlttee.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
We observed LhaL Lhere were clear and
repeaLed lnLervenLlons Lo sLeer Lhe conLracL
Lowards Swlss 1lmlng Cmega and ellmlnaLe
MSL, Spaln and oLher poLenLlal bldders
Lhrough blased Lechnlcal evaluaLlons Lo
resLrlcL compeLlLlon LhaL resulLed ln a slngle
flnanclal bld wlLh no scope for compeLlLlve
prlclng:
1|me||ne
Stage
Intervent|on
December
2008
March
2009
Apr||-May
2009
May 2009
Cctober
2009
CenLrallsed
Co-ordlnaLlon
CommlLLee MeeLlng
LCl
8esponses Lo LCl
ConsulLanL's
ulscusslon aper Lo
Shrl 8hanoL
nd
8l (2 round of
Lenderlng)
AnnouncemenL by Shrl LallL 8hanoL LhaL Lhe hardware for

1S8 would be supplled by Swlss 1lmlng Cmega
1he LCl llsLed flve ellglblllLy crlLerla and sLaLed LhaL 'ooly
5wlss 1lmloq Omeqo meets oll tbe obove ctltetlo'. Shrl vk
CauLam, CCC opposed Lhe process, as Lhe 1echnology lA
was noL lnvolved.
1wo responses were recelved from 1echnovlslon SA
(lLaly) and Mondo (lndla)
Shrl 8hanoL, however, consLlLuLed an evaluaLlon
commlLLee, whlch re[ecLed boLh blds. Shrl 8hanoL
recommended Swlss 1lmlng Cmega for 1S8 Lo Lhe M?AS.
no furLher acLlon was Laken.
1he consulLanL recommended a slngle suppller approach
for all 1S8 componenLs and suggesLed conflrmaLlon of Lhe
scope of work and dlrecL negoLlaLlons wlLh Swlss 1lmlng
Cmega.
1he 8l clauses resLrlcLed compeLlLlon and favoured Swlss
1lmlng Cmega
Lxperlence of provldlng 1S8 sysLems ln Aslan, CWC or
Clymplcs durlng Lhe lasL flve years - desplLe ob[ecLlons of
Lhe Lhen AuC (1echnology) and Shrl CauLam abouL lLs
resLrlcLlve naLure and suggesLlons Lo lnclude an-
Amerlcan or oLher slmllar mulLl-sporLlng evenLs, Lhe
clause was reLalned by Shrl vk verma, uC-CC, wlLhouL
recorded reasons.
1he scope of work requlred end Lo end servlce"
assoclaLed wlLh CWC (lncldenLally, nelLher Swlss 1lmlng
Cmega nor MSL, Spaln fulfllled Lhls crlLerla on Lhelr own).
1he 8l was amended Lo change Lhe servlce requlremenL
from '1lmlng, Scorlng and/or 8esulLs' Lo '1lmlng Scorlng
and 8esulLs". 1hls change formed Lhe basls for re[ecLlng
MSL.
1oble 12.1- cbtoooloqy of eveots telotloq to 15k coottoct
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC Look anoLher 4 monLhs Lo compleLe a
(now meanlngless) Lechnlcal and
commerclal evaluaLlon and award Lhe
conLracL Lo Swlss 1lmlng Cmega only ln
March 2010, Lhls furLher delay ls
lnexpllcable.
1|me||ne
Stage
Intervent|on
Cctober -
November
2009
8esponses Lo
8l and
re-CuallflcaLlon
1wo bldders responded Lo Lhe 8l - Swlss 1lmlng Cmega

and MSL, Spaln.
1he blds were Lo be evaluaLed ln Lhree sLages - pre-
quallflcaLlon (C), Lechnlcal and commerclal. Powever,
MSL, Spaln was dlsquallfled aL Lhe C sLage lLself. Whlle
Lwo members of Lhe LvaluaLlon CommlLLee - AuC
(1echnology) and AuC (8evenue) recommended LhaL
boLh bldders be quallfled - Lhey were overruled by Lhe
oLher Lwo members (wlLh Lhe supporL of Shrl vk verma,
uC-CC) on Lhe grounds LhaL MSL dld noL have experlence
as an end-Lo-end provlder and had never provlded Lhe
Llmlng funcLlon ln Lhe speclfled evenLs.
lncldenLally, Swlss 1lmlng Cmega and MSL, Spaln were
[olnLly provldlng 1S8 sysLems for Melbourne CWC-2006,
uoha Aslan Cames -2006, and 8el[lng Clymplcs 2008 -
wlLh Lhe Llmlng elemenL belng provlded by Swlss 1lmlng
Cmega (Lhe maln conLracLor), Lhe resulLs sofLware and Lhe
Cames lnformaLlon SysLem by MSL, Spaln, and Lhe scorlng
elemenL belng provlded [olnLly by boLh parLles. lurLher,
CC was aware LhaL MSL had already been appolnLed for
provldlng 1S8 for Lhe 2010 Aslan Cames, Cuangzhou.
Pence, Lhe re[ecLlon of MSL, Spaln was quesLlonable.
We conclude LhaL lf MSL was noL experlenced ln provldlng
end Lo end soluLlon, nelLher was Swlss 1lmlng. Powever
Lhe evaluaLlon was [usL sLeerlng Lowards selecLlon of Swlss
1lmlng Cmega .
CC was |eft w|th a s|ng|e f|nanc|a| b|dder
(by |rregu|ar|y d|squa||fy|ng the on|y
other ser|ous compet|tor - MSL, Spa|n),
effect|ve|y e||m|nat|ng any opportun|ty
for compet|t|ve pr|c|ng of 1Sk, wh|ch
fac|||tated acceptance of the exorb|tant
rates quoted by Sw|ss 1|m|ng Cmega.
lnLeresLlngly, CC also Look advlce on MSL,
Spaln's ellglblllLy from 1ClL and Shrl Mlke
Pooper. 1ClL advlsed dlsquallflcaLlon of
MSL, Spaln, Lhough lL had no assoclaLlon or
Lechnlcal knowledge on Lhe speclflc aspecLs
of Lhe 1S8 Lender. Shrl Mlke Pooper relled
largely on 1ClL's oplnlon.
Swlss 1lmlng Cmega offered vlk (value ln
klnd) of 3 legacy scoreboards and Cames
S
lnformaLlon SysLem (ClS) besldes a cash
S
Oc boJ olso flooteJ o sepotote teoJet fot Cl5 lo Octobet
2009 to wblcb M5l, 5polo boJ tespooJeJ, tbls teoJet
wos tetmlooteJ oo occeptooce of 5wlss 1lmloq Omeqo's
offet of Cl5 os vlk fot tbe 15k coottoct. loclJeotolly,
M5l, 5polo wos ptovlJloq tbe Cl5 lo ptevloos Comes os
o pottoet of 5wlss 1lmloq Omeqo
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
sponsorshlp of 8s. 4.30 crore and a cash
dlscounL of 8s. 1.18 crore. 1hls was
accepLed by Lhe CC. CC exLended several
undue favours Lo Swlss 1lmlng Cmega:
L|ab|||ty for 1ax: CC Look an addlLlonal
llablllLy of 8s.22.82 crore on accounL of
Laxes on behalf of Swlss 1lmlng Cmega,
conLrary Lo Lhe 8l provlslons. 1hls
varlaLlon was nelLher dlscussed by Lhe
commerclal evaluaLlon commlLLee nor
broughL Lo Lhe noLlce of Lhe CClC.
Cost of 1Sk systems for test events: 1he
8l was modlfled by keeplng cosLs
relaLlng Lo LesL evenLs ouL of Lhe
commerclal blds, Lhough Lhls formed a
parL of Lhe orlglnal scope of work.
Accordlngly, Swlss 1lmlng Cmega ln lLs
commerclal bld asked for an addlLlonal
33 per cenL for provldlng 1S8 for LesL
evenLs, whlch was noL consldered by Lhe
CC.
No c|ause for L|qu|dated Damages: 1he
conLracL had no clause for levylng
llquldaLlon damages on Swlss 1lmlng
Cmega for non-achlevemenL of
mllesLones or non-performance.
1erms of payment: 1he conLracL
provlded for paymenL of 93 percenL
amounL even before compleLlon of Lhe
game, Lhus leavlng no fooLhold for Lhe
CC ln case of poor performance.
1he flnal user accepLance of 1v graphlcs

(Lo be superlmposed on llve vldeo feed)
was Lo be compleLed by !uly 2010, buL
Lhe graphlcs were noL approved Llll 24
SepLember 2010.
CommenLary lnformaLlon SysLem (ClS), a
module of 1S8, provldes real Llme
lnformaLlon Lo commenLaLors and
sporLs presenLers of rasar 8haraLl and
oLher lnLernaLlonal broadcasLers. lor
mosL parL of Lhe Cames perlod, Lhe ClS
6
and remoLe ClS dld noL funcLlon
properly. 1he dlssaLlsfacLlon wlLh Lhe
servlce was such LhaL some
broadcasLers soughL refunds from CC
for non dellvery of ClS servlces and Lhe
AusLrallan 8P8 even wanLed removal of
Lhe logo of 1S8 provlder from Lhe
LelecasL as a penalLy.
Cames lnformaLlon SysLem (ClS)
(provlded by Swlss 1lmlng Cmega as
vlk) was Lhe llnk beLween resulLs
generaLed by 1S8 and lLs dlsLrlbuLlon Lo
broadcasLers, medla persons and oLher
users. 1hls dld noL funcLlon properly
durlng CWC-2010 and Lhe broadcasLers
lodged complalnLs ln Lhls regard.
uesplLe ClS and ClS noL funcLlonlng, CC
dld noL revoke Lhe performance
guaranLee of 8s 3.63 crore provlded by
Swlss 1lmlng Cmega, whlch was valld Llll
31 CcLober 2010.
6
1bls wos meoot to ptovlJe cl5 lofotmotloo ot otbet tboo
veooe locotloos
12.3.S erformance of 1Sk
We found severa| def|c|enc|es |n the

performance of 1Sk:
1S8 was noL LesLed durlng Lhe LesL
evenLs (due Lo reducLlon ln scope of
work) and was noL LesLed aL all ln a real-
Llme games slLuaLlon.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
noL flnd evldence LhaL Lhese changes
were duly approved and adverLlsed.
1he execuLlon of Lhe conLracL and lLs
monlLorlng was also deflclenL as:
Scoreboards could be lnsLalled aL only
10 ouL of 33 venues by Lhe deadllne of 1
SepLember 2010,
1here was no provlslon for levy of
llquldaLed damages,
roper LesLlng for cerLlfylng Lhe safeLy of
Lhe sLrucLure was noL carrled ouL, and
ln case of a 8ugby 7s venue, Lhe locaLlon
and slLe was changed aL Lhe lasL
momenL by Swlss 1lmlng Cmega. uurlng
LesLlng, Lhe scoreboard sLrucLure came
crashlng down and was re-lnsLalled
subsequenLly.
admlnlsLraLlon of Lhe Cames. CC procured

Lhls sysLem from Cold Medal SysLems for 8s
21.02 crore wlLh an addlLlonal llablllLy of 8s
4.27 crore Lowards Laxes.
8esldes Lhe 1S8 equlpmenL, Swlss 1lmlng
Cmega also provlded 39 scoreboards 36 of
whlch were renLal and 3 were legacy lLems.
CC had Lo erecL sLrucLures for mounLlng
Lhese scoreboards. 1he conLracL for
execuLlon of Lhese sLrucLures was awarded
Lo Advance 1ech Lnglneerlng aL a cosL of 8s.
3.40 crore. We found Lhe followlng
deflclencles ln Lhe approval process:
1he 8l was lssued ln May 2010 wlLhouL
global Lenderlng, and
varlous corrlgenda effecLlng changes ln
scope of work, ellglblllLy crlLerla of
Lurnover, consorLlum relaLed condlLlons
and documenLaLlon Lo be submlLLed by
bldders were purporLedly lssued. We do
1he Cames ManagemenL SysLems (CMS) ls

Lhe prlmary appllcaLlon LhaL deals wlLh Lhe
12.4 Scoreboard Structures
12.S Games Management
Systems
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
12.S.1 De|ays |n |ann|ng
lor CWC 2010, Lhe process for
procurlng CMS was lnlLlaLed only ln
CcLober 2009 and Lhe conLracL could
be slgned [usL slx monLhs before Lhe
Cames (March 2010). ln conLrasL,
CWC-Melbourne 2006 had awarded
Lhe CMS conLracL 18 monLhs prlor Lo
Lhe sLarL of Lhe Cames. 1hls creaLed
a squeeze on Lhe dellvery schedule
and, comblned wlLh lack of
compeLlLlon, led Lo a 300 per cenL
lncrease ln cosLs, wlLh Lhe suppller
vlrLually dlcLaLlng all Lhe Lerms.
llqote 12.J - Ovetvlew of CM5
llqote 12.4 - uoJoe Jeloys lo
owotJ of CM5 coottoct
0ames
Naaagemeat
8ystem
eaeral|a
attrea|lal|aa
taras
|aIarmal|aa
maaaemeal Iar
arr|va|s, aejarlare
aaa jralata|
rea|remeals
Vaaaemeal
aI
ea|jmeal
aaa assels
asea
Re|slral|aa
aaa
Vaaaemeal aI
va|aaleers al
var|aas veaaes
Trat||a l|e
rete|jl, slat||a
aaa a|slr|aal|aa
aI aa|Iarms
la war|Iarte
|aleral|aa
w|l| T8R
R|P |ssaea
(Dtlaaer 29l
4 resjaases aaa
P eva|aal|aa
(Navemaer 29l
Cammert|a| a|a eva|aal|aa
(Detemaer 29l
8|a|e Tet|a|ta| a|a aI a|a
Veaa| 8yslems eva|aalea
(Navemaer 29l
Neal|al|aas w|l|
a|a Veaa| 8yslems
(Detemaer 29l
LD| |ssaea la
a|a Veaa| 8yslem
(Jaaaary 21 l
Awara aI taalratl
(Vart| 21l
Lv|dent|y, the restr|ct|ve c|auses |n kI
and b|ased eva|uat|on of b|ds resu|ted |n
e||m|nat|on of compet|t|on, and ensured
that the f|nanc|a| b|d of Go|d Meda|
Systems was the on|y b|d to be opened.
W|th no f|nanc|a| compet|t|on, and on
the p|ea of shortage of t|me, CC
accepted the h|gh|y pr|ced b|d of Go|d
Meda| Systems. 1h|s b|d was f|ve t|mes
the amount (ks. 4.1S crore) charged for
Me|bourne CWG-2006 by the same
vendor.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
AlLhough MSL Spaln had noL provlded

CMS ln Clymplcs, CommonwealLh or
Aslan Cames ln Lhe lasL flve years, lL had
provlded CMS for Aslan Cames 1998.
1hls was noL consldered, due Lo Lhe
resLrlcLlve 8l clause.
1he C evaluaLlon ls even more
quesLlonable as Cold Medal SysLems dld
noL submlL Lhe requlred documenLaLlon
ln supporL of lLs purporLed flnanclal
sLrengLh, whereas MSL Spaln had done
so and had sLrong flnanclals ln
comparlson Lo Cold Medal SysLems.
As ln Lhe case of Lhe 1S8 conLracL, CC also
unduly favoured Lhe vendor for CMS ln
several ways:
L|ab|||ty for 1ax: CC Look an addlLlonal
llablllLy of 8s.4.27 crore on accounL of
Laxes on behalf of Cold Medal SysLems,
conLrary Lo Lhe 8l provlslons. 1hls
varlaLlon was nelLher dlscussed by Lhe
commerclal evaluaLlon commlLLee nor
broughL Lo Lhe noLlce of Lhe CClC.
No c|ause for L|qu|dated Damages: 1he
conLracL had no clause for levylng
llquldaLlon damages on Cold Medal
SysLems for non-achlevemenL of
mllesLones or non-performance.
12.S.2 L||m|nat|on of compet|t|on
We observed LhaL Lhe blddlng process was

Lallored Lo ellmlnaLe compeLlLlon and
faclllLaLe Cold Medal SysLem's emergence
as a slngle flnanclal bldder:
Clobal Lenderlng was noL resorLed Lo
and sufflclenL Llme was noL glven for
responses. 1he 8l could noL generaLe
adequaLe compeLlLlve Lenslon, as Lwo
7
ma[or players ln Lhe fleld, ALos Crlgln
8
and Sangyong , dld noL even respond Lo
Lhe LCl.
1he 8l was resLrlcLlve ln ensurlng
compeLlLlon as lL asked for experlence of
provldlng CMS ln Clymplcs,
CommonwealLh or Aslan Cames ln Lhe
lasL 3 years and could effecLlvely have
had a maxlmum of [usL 3 quallfled
bldders.
CuL of Lhe four bldders, Lhree bldders
were dlsquallfled on grounds of
lnadequaLe experlence, processlng fee
and supporLlng documenLaLlon. MSL
Spaln, whlch was dlsquallfled for Lhe
1S8 conLracL was once agaln dlsquallfled
ln Lhe C evaluaLlon for CMS, alLhough
lL had beLLer credenLlals Lhan Cold
Medal SysLems. lL had provlded all Lhe
flve modules of CMS dlrecLly ln Lhe pasL,
whereas Cold Medal SysLems could
provlde only Lwo ouL of flve modules on
lLs own and was dependenL on mulLlple
parLners for dellverlng Lhe oLher
modules. lncldenLally, Cold Medal
SysLems also dld noL furnlsh any
documenL evldenclng lLs Lle up wlLh lLs
local parLner, 1rlsLar LnLerprlses.
7
8
soppllet of CM5 fot 8eljloq Olymplcs 2008
soppllet of CM5 fot uobo Asloo qomes 2006
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
erformance Guarantee - 1here was no

provlslon for performance securlLy ln
Lhe conLracL, desplLe CClC's lnsLrucLlons
ln vlew of Lhe unascerLalnable flnanclal
condlLlon of Cold Medal SysLems.
Increased kates - A clause for paymenL
aL lncreased raLes for addlLlonal work
was added afLer L8's approval.
quallflcaLlon. A day before Lhe flnal bld
submlsslon daLe, Lhls crlLerlon was
relaxed on Lhe grounds LhaL no bldder
mlghL quallfy on Lhese crlLerla. We have
no evldence of Lhls corrlgendum belng
publlshed on Lhe webslLe/newspapers.
1hree blds from P1-Pungama, PCL lnfo
sysLems- nu1v Convergence and 1CS-
SporLs lnLeracLlve were recelved,
lnLeresLlngly, all Lhree dld noL have such
experlence buL were Lermed as
Lechnlcally quallfled under Lhe relaxed
crlLerla,
1he documenLaLlon from Pungama
regardlng lLs consorLlum wlLh PlndusLan
1lmes was deflclenL, buL was lgnored by
Lhe Lechnlcal evaluaLlon commlLLee,
uesplLe complalnLs LhaL blds were
recelved ln loose sheeLs, unbound and
unsealed, Pungama's bld was accepLed,
AlLhough Pungama's commerclal bld
was L-3 aL 8s. 7.94 crore, lL was declared
L-1 by Laklng lnLo accounL a cash
dlscounL of 8s. 4.63 crore offered by
Lhem. We cannoL conflrm wheLher Lhe
offer of cash dlscounL was acLually
recelved along wlLh Lhe bld. 1hls L-1 bld
was reduced furLher Lo 8s.2.93 crore
afLer negoLlaLlons.

12.6.1 |ann|ng
1he Cames 1lme webslLe was effecLlvely Lhe
maln lnLerneL plaLform for CWC2010 Lo
dlssemlnaLe real Llme lnformaLlon on
sporLlng evenLs durlng Lhe Cames. AlLhough
Lhe Cames 1lme WebslLe ls a sLandard and
predlcLable feaLure of all mulLl sporL
lnLernaLlonal evenLs, Lhls was noL planned
or consldered Llll !une 2010, when, afLer
CCl crlLlclsm, Lhe proposal for creaLlng a
Cames 1lme WebslLe was lnlLlaLed. CC also
falled Lo explolL Lhe opporLunlLy for revenue
generaLlon from Lhe Cfflclal Cames 1lme
webslLe Lhrough adverLlsemenL revenue
due Lo deflclenL and delayed plannlng.
12.6.2 Irregu|ar Award of Contract to
n1-nungama
1he blddlng process was squeezed and

compleLed wlLhln Lwo monLhs, leadlng Lo
several lrregularlLles ln Lhe award of Lhe
conLracL Lo P1-Pungama aL 8s. 2.93 crore ln
AugusL 2010:
Clobal Lenderlng was noL followed and
only 10 days Llme was glven for
responses,
1he 8l sLlpulaLed pasL experlence ln
lnLernaLlonal mulLlsporL evenLs as a pre-
12.6 Cff|c|a| Games 1|me
Webs|te
1he b|ds were not rece|ved |n a sea|ed
cover as |s the st|pu|at|on. 1h|s
ev|dent|y |ed to comp|a|nts. Iurther,
aud|t has seen no proof of the cash
d|scount reported|y offered by nungama
actua||y accompany the b|d to convert |t
|nto L-1. 1here was re|axat|on |n the kI
cr|ter|a a|so. Such |nf|rm|t|es |n the
award to nungama |ack transparency
and |ead to the conc|us|on that the
process was tweaked |n the|r favour.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
12.6.3 erformance of the Webs|te
Whlle Lhere were adverse medla reporLs on
Lhe performance of Lhe webslLe, quoLlng
problems of speed and non avallablllLy of
real Llme lnformaLlon, Lhe documenLaLlon aL
Lhe CC's end was sparse and unrellable.
Lven Lhe CCl head, Shrl Mlke lennel sLaLed
LhaL tbete ls cettololy o blq ptoblem wltb
tbe Offlclol Comes 1lme webslte".
CC's veLLlng of Lhe conLenL hosLed on Lhe
webslLe was also deflclenL, as Lhe llsL of
parLlclpaLlng naLlons lncorrecLly lncluded
korea, !apan, hlllpplnes and even Lhe uS.
Lven Lhe archlval Cu/uvu of Lhe fully
funcLlonal webslLe, whlch was Lo be
provlded by november 2010, had noL been
glven by Lhe vendor Llll March 2011.
uesplLe Lhese facLs, CC falled Lo encash Lhe
performance guaranLee of 8s. 0.29 crore,
Lhere were no oLher conLracLual provlslons
for penalLles ln case of non performance.
12.7.1 Appo|ntment of 1CIL on
nom|nat|on bas|s
1elecommunlcaLlons ConsulLanLs lndla
LlmlLed (1ClL), a ubllc SecLor underLaklng,
was appolnLed wlLhouL any recorded
[usLlflcaLlon as Lhe Lurnkey lmplemenLaLlon
agency for Lelecom, l1 and neLworklng
pro[ecLs on nomlnaLlon basls ln CcLober
2009. 1hls was approved ex-facLo by Lhe L8
ln !anuary 2010.
CC had a 139 sLrong Lechnology Leam
(excludlng 4 consulLanLs/advlsors) slnce
CcLober 2009. CuL of Lhe 42 Lechnology
relaLed conLracLs worLh 8s 247 crores, only
12 conLracLs of 8s 92.17 crore were
awarded Lhrough 1ClL on behalf of Lhe CC,
for whlch CC pald 8s. 18.66 crore Lo 1ClL as
commlsslon and Lax. Conslderlng LhaL Lhe
1echnology funcLlonal area could handle
Lechnlcal conLracLs llke 1S8 and CMS on lLs
own, engaglng Lhe servlces of 1ClL for 12
rouLlne conLracLs ls grossly un[usLlfled.
lurLher, many oLher conLracLs e.g. of Wl-ll
servlces, daLa cards, offlclal webslLe and
l1v were awarded by CC dlrecLly.
lnLeresLlngly, 1ClL was never consulLed ln
conLracLs relaLed Lo Lelecom or l1 servlces.
lurLher, Lhe conLracL wlLh 1ClL was noL
lmplemenLed ln pracLlce ln Lurnkey mode.
AL dlfferenL sLages of Lhe conLracL from
negoLlaLlons Lo bld evaluaLlon, conLracLs
were senL Lo CC for approval.
Also, lL was noLlced LhaL 1ClL's 'selecLlve'
advlce was Laken on oLher Lechnlcal lssues
e.g. ln Lhe 1S8 conLracL aL Lhe pre blddlng
sLage for declarlng MSL, Spaln lnellglble.
9
CC had Lo provlde audlo vldeo equlpmenL
aL all compeLlLlon and non compeLlLlon
venues for medla and lnLernaLlonal
broadcasLers. 1he esLlmaLlon of
requlremenLs was faulLy, wenL Lhrough
revlslons, and resulLed ln over provlslonlng,
Lhe equlpmenL was flnally procured from
Samsung lndla for 8s 3.79 crore.
1he flrsL round of Lenderlng commenced
wlLh Lhe lssue of Lhe 8l ln March 2010
(wlLhouL budgeLary approval) and resulLed
ln Lhe lssue of a purchase order for 8s. 3.20
crore Lo Ml8C LlecLronlcs (CnluA) ln !une
2010. 1hls was cancelled as Lhere were
12.7.2 Supp|y of Aud|o V|deo Lqu|pment
for Venues
12.7 1e|ecom, I1 and
network|ng pro[ects
9
1v, 1v mooots, uvu/cu, uoto ltojectot (Jesktop),
ulqltol vlJeo cometo, 1tlpoJ fot ulqltol vlJeo cometo
(5tlll), lA system etc.
12.8.1 W| I| serv|ces |n Games V|||age
WlLhouL lnvolvlng 1ClL, CC declded ln
March 2010 Lo provlde free wl-fl lnLerneL
servlce aL Lhe Cames vlllage. Whlle Lhe
lnlLlal proposal was for servlces ln only
selecLed parLs of Lhe Cames vlllage, Lhe
12.8 rov|s|on of I1 serv|ces -
Cther contracts
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
subsLanLlal reducLlons ln quanLlLles and
duraLlon of renLlng (on Lhe lnsLrucLlons of
Lhe lasL 1rack CommlLLee) and Lhe vendor
revlsed Lhe Lerms and condlLlons, whlch
1ClL refused Lo accepL. 1hls proposal was
nelLher seen by Lhe Chalrman, nor raLlfled
by Lhe L8 aL any sLage.
AfLer Ml8C's refusal, on 7 SepLember 2010,
Lhe lasL 1rack CommlLLee recommended
approachlng Samsung lndla and LC lndla for
ouLrlghL purchase or renLal of Lhe
equlpmenL. Powever, CC chose Lo approach
only Samsung lndla (and noL LC lndla) on
nomlnaLlon basls on 8 SepLember 2010 and
lssued Lhe LCl on 13 SepLember 2010 of 8s
3.78 crore for ouLrlghL purchase of Lhe
equlpmenL excludlng A SysLems, uvu
recorder and orLable Cu players. 1here
were no recorded reasons for lnlLlal
lncluslon and subsequenL excluslon of Lhese
lLems.
CC purchased/leased 3302 lapLops and
deskLops for 8s 9.80 crore ln several baLches
durlng Aprll Lo SepLember 2010 Lo meeL l1
requlremenLs aL compeLlLlon and non-
compeLlLlon venues. SLrangely, Lhe
quanLlLles requlred were noL assessed aL
one go and nearly 30 percenL (1638) of
Lhese compuLers were leased. We could
flnd no documenLed crlLerlon for decldlng
wheLher Lo procure or lease. lurLher, Lhe
opLlon of geLLlng sulLable sponsorshlp from
l1 companles for such a large requlremenL
was never explored by Lhe CC aL any sLage.
lnLeresLlngly, leased compuLers were always
Laken Lhrough 1ClL, whlle purchases were
done dlrecLly by CC. 1he lease renL charged
was 76 percenL of Lhe cosL, and wlLh an
12.7.3 rocurement of Computer
nardware
addlLlonal 9 per cenL as commlsslon and
10.33 per cenL as leaslng charges for 1ClL,
CC ended up paylng 93 percenL of Lhe
purchase cosL of equlpmenL. ln addlLlon, CC
spenL 8s. 2.92 crores for purchaslng
sofLware llcenses for Lhese leased
compuLers.
CC procured l1 equlpmenL worLh 8s. 6.46
crore and renLed 8s. 38 crore worLh of l1
equlpmenL for Lhe games. 1he
documenLaLlon on lnvenLory, dlsLrlbuLlon
and decommlsslonlng was lncompleLe and
Lhere were subsLanLlal delays ln ascerLalnlng
Lhe locaLlon of all equlpmenL. 1he leased
equlpmenLs were Lo be decommlssloned
and reLurned Lo Lhe respecLlve vendors, we
found LhaL 8s. 21.04 crore of leased
equlpmenLs was yeL Lo be reLurned. CC has
noL planned for dlsposal of Lhe owned
asseLs. 1here was no pollcy for warehouslng
and legacy use of Lhe equlpmenL afLer Lhe
games. AfLer M?AS Lurned down CC's lnlLlal
proposal for offerlng Lhls equlpmenL Lo lLs
employees aL dlscounLed raLes, no acLlon
has been Laken and Lhe equlpmenL ls lylng
ln MuC sLadlum and CC headquarLers
(March 2011).
12.7.4 Ma|ntenance of |nventory,
decomm|ss|on|ng and |egacy
p|ann|ng
12.8.2 rov|s|on of data cards for med|a
CC provlded 1400 daLa cards from 1aLa
1eleservlces and 8ellance and Look anoLher
1264 daLa cards on lease from M1nL aL a
LoLal cosL of 8s.0.8 crore, afLer wlreless
lnLerneL access was barred for securlLy
reasons. 8ecords of usage, dlsLrlbuLlon and
reLurn of Lhese daLacards are very scanLy.
Also, when some daLa cards dld noL
funcLlon, CC had Lo make alLernaLlve
arrangemenLs.
12.8.3 I|xed ||ne broadband connect|on
for med|a persons
1he work of provldlng hlgh speed lnLerneL
bandwldLh for medla press CperaLlons was
awarded Lo 1aLa CommunlcaLlons LLd. on
nomlnaLlon basls ln SepLember 2010 aL a
cosL of 8s. 11.28 crore. CC sLaLed LhaL Lhls
was resorLed Lo when CL81 guldellnes
dlsallowed Wl ll servlces ln medla Lrlbunes,
and Lhe opLlon of daLacards could noL fulfll
Lhls requlremenL. Accordlng Lo Lhe CC,
prlor approval from flnanclal auLhorlLles
was noL soughL due Lo pauclLy of Llme.
12.8.4 I1V for Games v|||age
CC awarded a conLracL for 8s. 0.60 crore on
21 SepLember 2010 Lo 8haraLl AlrLel on
nomlnaLlon basls for provlslon of l1v,
wlLhouL recorded reasons for Lhe change
from Cable 1v. 8ecords on acLual dellvery of
servlces were noL avallable.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
scope of work was exLended slgnlflcanLly,
ralslng Lhe esLlmaLed cosL from [usL 8s.13
lakhs Lo 8s. 3.30 Crore. 8ased on a slngle
response recelved, Lhe conLracL was
awarded Lo 8adlus lnfraLel aL a cosL of
8s.2.73 crore. lncldenLally, several
complalnLs were recelved from
lnLernaLlonal broadcasLers abouL Lhe non-
funcLlonlng of Wl-ll servlces and CC was
compelled Lo provlde for alLernaLlve
servlces. CC sLaLed LhaL necessary
deducLlons were belng made for non
performance.
C
n
A
1
L
k
Sports
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1J
1he 5port lunctiono/ 4reo wos responsib/e for orqonisotion of sportinq events,
mointenonce of resu/ts records, ond presentotion ceremonies, it wos o/so ossiqned the
responsibi/ity of purchose of sportinq equipment.
1here were severo/ deficiencies in the procurement of sports equipment, such os not
fo//owinq q/obo/ tenderinq procedures ond purchoses on sinq/e tender bosis. we o/so
found purchose of o boxinq rinq with o/der specificotions, ho/f the bodminton shutt/ecocks
crossinq the she/f /ife even before the events, ond huqe quontities of procured equipment
/yinq unused in stores, roisinq doubts on the reosonob/eness of the ossessment of
requirements {in porticu/or, trompo/ine sets procured for on event not schedu/ed in the
6omes).
1he procedures fo//owed for hirinq 5hri 6req 8owmon ond his compony, 6reot 8iq vents
{68), for o mu/tip/icity of controcts re/otinq to sports presentotion ceremonies were
questionob/e. One controct wos, in effect, de-octivoted in 5eptember 2010, ond re-
oworded ot exorbitont rotes to 68. we o/so noticed froudu/ent poyments to 68 for fo/se
c/oims of personne/ ossiqnments {when they did not even visit lndio), which were certified
by Oc officio/s.
4udio video equipment for sports presentotions were hired ot exorbitont rotes, throuqh o
hiqh/y f/owed process. Our enquiries reveo/ed thot the quoted prices for purchose of the
some equipment wos obout ho/f the hirinq cost.
uurlng Lhe Cames, 272 evenLs ln 17
sporLlng dlsclples were Lo be organlzed. 1he
SporLs luncLlonal Area was responslble for
organlsaLlon of each evenL lncludlng lLs
regulaLlons and conducL, malnLenance of
Lhe Llmlng, scorlng and resulLs records, Lhe
presenLaLlon ceremonles and
announcemenLs.
13.1 Cverv|ew 13.2 rocurement of Sports
Lqu|pment
13.2.1 Cverv|ew
AfLer venue owners lndlcaLed Lhelr lack of
experLlse ln procuremenL of sporLlng
equlpmenL, M?AS asslgned Lhe overall
responslblllLy for procurlng sporLs
equlpmenL for boLh compeLlLlon and
Lralnlng venues ln CcLober 2009 Lo CC and
released a budgeL of 8s. 23 crores ln May
2010, ln addlLlon Lo CC's exlsLlng sancLloned
budgeL of 8s. 3.42 crores.
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
We do noL flnd sufflclenL evldence LhaL
requlremenL assessmenL for sporLs
equlpmenL was done wlLh due dlllgence.
AlLhough CC sLaLed LhaL afLer lnlLlal llsLlng
of lLems, commenLs were lnvlLed from Lhe
naLlonal sporLs federaLlons, we found LhaL
mosL federaLlons dld noL make any
commenLs. 1hus, Lhe procuremenLs - boLh
Lhe lLems and brands, as well as quanLlLles -
were effecLlvely declded by Lhe CC, whlch
apparenLly had no experLlse ln Lhls area.
CC awarded 93 conLracLs for procuremenL
of sporLs equlpmenLs beLween lebruary
2010 Lo SepLember 2010 for a LoLal amounL
of 8s 27.22 crore. We found several
deflclencles ln Lhe procuremenL:
Clobal Lenderlng procedure was noL
followed aL all,
erformance guaranLee was noL
obLalned from Lhe successful bldders ln
any case,
ln 3 cases, supply orders of 8s 3.93 crore

were lssued even before approval of Lhe
compeLenL auLhorlLy(LMC),
ln 19 cases, purchases worLh 8s. 3.17
crore were made on slngle Lender basls.
lnLeresLlngly, ln 14 such cases, Lhe slngle
Lenderer was Lhe same agency l.e.
1
SwaLanLra SLores, aLlala . ln cases
where only one Lender was recelved
/found ellglble, Lhe opLlon of re-
Lenderlng was noL exerclsed by CC,
desplLe reasonable Llme belng avallable.
Whlle processlng Lhe award for
purchase of boxlng equlpmenL, CC
lrregularly shlfLed from lLem wlse
processlng of blds Lo processlng Lhe
procuremenL as a slngle package afLer
Lechnlcal quallflcaLlons of Lhe bldders
had been evaluaLed and commerclal
1
wblcb ls esseotlolly o spotts epolpmeot stote ooJ oot
mooofoctotet
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
expressed Lhelr lnablllLy Lo dellver Lhe lLems
ln Llme due Lo vacaLlons ln Lurope. CC
malnLalned LhaL Lhe delays were on accounL
of Lhelr walLlng for oLher bldders Lo glve Lhe
requlred usage cerLlflcaLes. We, however,
noLlced LhaL ln AugusL 2010, afLer cancelllng
Lhe earller supply order, CC dlvlded Lhe
order and procured Lhe equlpmenL aL
hlgher raLes from uCS lnc(uSA) and nordlc
SporLs A8(Sweden) whlch resulLed ln
addlLlonal expendlLure of 8s. 0.93 crore.
Surprlslngly, boLh Lhe companles never
submlLLed any usage cerLlflcaLe.
1he lnLernaLlonal 8oxlng lederaLlon
changed lLs boxlng rlng speclflcaLlons ln
!anuary 2010 from 7.3 m x 7.3 m Lo 7.8 m x
4
7.8 m for all Al8A approved evenLs . CC,
however, ordered 2 compeLlLlon boxlng
blds opened. ConsequenLly, Lhe
purchase order was placed Lo a parLy
who was noL Lhe L1 bldder for all lLems.
SelecLed lnsLances of lrregularlLles ln
procuremenL are deLalled below:
2
3
lotetootloool Assoclotloo of Atbletlc leJetotloos
usoqe cettlflcote ls qlveo by tbe lotetootloool
leJetotloo fot tbe osoqe of ooy epolpmeot lo ooy
ptevloos lotetootloool eveot.
4
1be oew speclflcotloos wete ootlfleJ 2 yeots lo oJvooce,
exlstloq tloqs wltb olJ speclflcotloos wete cooslJeteJ
vollJ ooly tlll uecembet 2010.
13.2.2 urchase of Ath|et|c Lqu|pment
2
CuL of Lhe flve lAAl approved companles
who bld for Lhls work, Lhree dld noL submlL
3
Lhe usage cerLlflcaLes from Lhe
lnLernaLlonal federaLlon as requlred ln Lhe
8lC and Lhe only quallfled bld of ulMA
SporLs was opened ln March 2010. AfLer an
lnexpllcable delay of 3 monLhs, Lhe supply
order was lssued ln !une 2010 Lo Lhe flrm aL
a cosL of 8s. 2.78 crore. ln !uly 2010 ulMA
13.2.3 urchase of 8ox|ng Lqu|pment
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
rlngs for 8s. 0.18 crore ln lebruary and !une
2010 wlLh Lhe old speclflcaLlon.
SlgnlflcanLly, Lhe evaluaLlon commlLLee
deallng wlLh Lhe purchase of boxlng rlngs
dld noL have any member from Lhe naLlonal
boxlng federaLlon, or sporLspersons
assoclaLed wlLh boxlng. CC sLaLed LhaL
Lhough Lhelr speclflcaLlons were lncorrecL,
ln one case Lhe suppller changed lL Lo new
speclflcaLlon. 1he oLher boxlng rlng ls
however, unflL for use ln Al8A-approved
evenLs.
S
6
os ptesctlbeJ ooJet tbe stooJotJs of tbe l8l
Oot of tbe epolpmeot ptocoteJ fot cC-2008,looe ooJ Notloool Comes 2011, koocbl
?onex shuLLle cocks, Lhe vendor supplled
1000 dozen of shuLLle cocks of only Lwo
speeds le. speed 1 & 2. CC accepLed Lhe
supply, Lhough lL was aL varlance wlLh Lhe
supply order.
lmporLed sporLlng equlpmenL for
gymnasLlcs and aquaLlcs worLh 8s. 4.36
crore and 8s.1.08 crore respecLlvely was
requlred Lo be dellvered before Lhe LesL
evenLs scheduled ln !uly-AugusL 2010, buL
was dellvered only ln AugusL-SepLember
2010. 1hls led Lo cancellaLlon of LesL evenLs
ln Lhe dlsclpllnes of synchronlsed swlmmlng
and hlgh board dlvlng. Also, ln Lhe absence
of Lhe new equlpmenL, some equlpmenL
had Lo be LransporLed from une and
6
8anchl .
lour Lralnlng boxlng rlngs (8s 0.33 crore)
ordered for Lhe pracLlce sesslon of Lhe
lndlan Leam scheduled from 23 SepLember
Lo 3 CcLober 2010, were recelved only on
29 SepLember 2010 and could be lnsLalled
[usL one day before Lhe evenLs began.
13.2.S De|ayed supp|y of equ|pment for
test events and tra|n|ng
13.2.4 urchase of shutt|ecocks
Cf Lhe 2000 dozen shuLLlecocks purchased
for badmlnLon evenLs, 1000 dozen
S
shuLLlecocks had crossed Lhe shelf llfe even
before Lhe evenLs were held. SlgnlflcanLly,
1392 dozen shuLLlecocks (l.e. 68 per cenL of
Lhe procuremenL, lncludlng Lhe ones whlch
had crossed Lhe shelf llfe) valulng 8s 0.16
crore remalned unuLlllsed.
lurLher, whlle CC placed an order wlLh
Sunrlse & Company for provldlng 300 dozen
of Speed-1, 400 dozen of Speed-2 & 300
dozen of Speed-3 l.e. LoLal 1000 dozen
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
16 sLorage Lrolleys, whlch were nelLher
ln Lhe llsL approved by M?AS nor
requesLed by Lhe SporLlng lederaLlon,
were procured aL a cosL of 8s. 0.23 crore
as parL of aquaLlc equlpmenL, buL were
never made avallable aL Lhe ur. SM
AquaLlcs Complex, Lhe aquaLlcs venue.
LlghL of Lhese Lrolleys were kepL aL Lhe
Cames vlllage and Lhe resL remalned ln
Lhe sLore.
13.4.1 Cverv|ew
SporLs presenLaLlon ls Lhe showcaslng of a
sporL for venue specLaLors and broadcasL
audlences. 1hls ls Lhe ceremony where Lhe
medal wlnners are presenLed wlLh medals
ln recognlLlon of Lhelr achlevemenL and
Lhelr counLrles are honoured by ralslng Lhelr
naLlonal flags and playlng Lhe naLlonal
anLhem of Lhe gold medal wlnners.
We found huge quanLlLles of sporLs
equlpmenL lylng unused aL varlous locaLlons
even afLer Lhe Cames had concluded,
ralslng doubLs on Lhe reasonableness of Lhe
assessmenL of requlremenLs. Some
lnsLances are glven below:
SporLs equlpmenL worLh 8s 1.33 crore
(ueLalls ln Annex 14.1), was lylng
unpacked ln Lhe l1C sLore as of
november 2010,
13.3 rocured equ|pment |y|ng

unused
13.4 Sports resentat|on
Ceremon|es
CuL of 17 venues, equlpmenL usage

records of only 7 venues were recelved.
ln Lhese venues, sporLs equlpmenL
worLh 8s 0.93 crore (ueLalls ln Annex
14.2) was lylng fully unused.
10 Lrampollne seLs procured for aquaLlcs
aL a cosL of 8s 0.34 crore were kepL
unused aL Lhe l1C sLore.
2 Lrampollne seLs procured for
gymnasLlcs aL a cosL of 8s 0.11 crore
were procured wasLefully, as Lhere was
no Lrampollne evenL scheduled ln Lhe
Cames. 1hese were lylng packed ln Lhe
lC SLadlum sLore LhroughouL Lhe Cames.
Non-use of trampo||ne dur|ng CWG 2010
Use of trampo||ne dur|ng
8e|[|ng C|ymp|c 2008
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC lncurred a LoLal expendlLure of 8s. 13.62
crore for sporLs presenLaLlon:
8s 3.68 crore on Shrl Creg 8owman/
CreaL 8lg LvenLs (C8L),
8s 6.73 crore on hlrlng of audlo vldeo
equlpmenL,
8s 0.19 crore on hlrlng of sporLs

presenLaLlon managers and announcers,
and
8s 1.00 crore for mlscellaneous expenses
on C8L consulLanLs.
CC awarded several conLracLs Lo Shrl Creg
8owman and hls company, CreaL 8lg LvenLs
(C8L), as summarlsed below.
1oble 1J.1 - coottocts owotJeJ to 5btl Cteq 8owmoo ooJ Cteot 8lq veots
1|me||ne Vendor Work Contract Amount
Actua||y a|d
(ks. |n Crore)
Cctober
2009
Ianuary
2010
Iu|y 2010
September
2010
Creg 8owman
CreaL 8lg LvenLs
CreaL 8lg LvenLs
CreaL 8lg LvenLs
SporLs presenLaLlon
consulLanL
SporLs presenLaLlon
core Leam
Supply of
sporLs presenLaLlon
managers (17) and
vlcLory ceremony
producers (3)
SporLs presenLaLlon
workshop & 8aslc
Muslc/vldeo ack
Servlce AgreemenL
uSu 17,200 per
monLh
uSu 302,000
uSu 830,000
0.77
1.47
8lddlng
cancelled
3.44
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
employee of C8L. Shrl Creg 8owman dld
noL lnform CC of Lhls lnLerconnecLlon and
advlsed CC Lo accepL Lhe bld of C8L. 1hls
bld was however cancelled as boLh blds
were found Lo be unsealed.
Seven monLhs lnLo Lhe !anuary 2010
conLracL and afLer recelvlng paymenLs of 8s
1.47 crore (63 per cenL), C8L senL a noLlce
of LermlnaLlon ln AugusL 2010 Lo CC. CC dld
noL LermlnaLe Lhls conLracL, buL lnlLlaLed an
LCl for a new conLracL for supply of sporL
presenLaLlon managers and vlcLory
ceremony producer", alLhough Lhe conLracL
7
was awarded for a dlfferenL scope of work .
1he enLlre process of blddlng was
mlraculously compleLed wlLhln 16 days as
follows:
We found LhaL Lhese conLracLs were
awarded and managed by CC ln compleLe
dlsregard of Lhe norms of proprleLy and
wlLhouL safeguardlng lLs flnanclal lnLeresLs.
AfLer hurrled negoLlaLlons and approvals of
Lhe lasL 1rack CommlLLee on 13 SepLember
2010, on 16 SepLember 2010 CC once agaln
enLered lnLo an agreemenL wlLh C8L aL a
7
5potts lteseototloo wotksbop ooJ 8oslc Moslc/vlJeo
lock 5etvlce Aqteemeot
13.4.2 n|r|ng of Greg 8owman and Great
8|g Lvents
ln CcLober 2009, CC hlred Shrl Creg
8owman as consulLanL for sporLs
presenLaLlon on nomlnaLlon basls. Pe was
overall ln-charge for Lhe dellvery of Lhe
sporLs presenLaLlon programme across all
compeLlLlon venues.
Shrl 8owman was also responslble for
selecLlng Lhe SporLs resenLaLlon 1eam.
Accordlngly, he hlred hls own company,
CreaL 8lg LvenLs (C8L) on nomlnaLlon basls
ln !anuary 2010 for a perlod of 10 monLhs aL
a cosL of uSu 302000 (8s. 2.26 crore) for
asslsLlng Lhe consulLanL (Shrl 8owman) and
for Lhe creaLlon, deploymenL and dellvery of
Lhe SporLs resenLaLlon programmes for Lhe
Cames.
ln !uly 2010, CC adverLlsed for Lhe supply
of sporLs presenLaLlon manager (17) and
vlcLory ceremony producers (3)." 1he Lwo
Lenders recelved were from CreaL 8lg
LvenLs and lun and Cames LlmlLed, whlch
was submlLLed by Shrl 8adley loxon, an
1oble 1J.2 - AwotJ of
secooJ coottoct to C8
1 September
2010
7 September
2010
7 September
2010
12 September
2010
13 September
2010
16 September
2010
Issue of LCI
(|n newspaper)
LasL daLe of
recelvlng LCl
Cpenlng of slngle bld
from C8L
negoLlaLlons wlLh C8L
Approval of lasL 1rack
CommlLLee
new conLracL slgned
beLween CC and C8L
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
LoLal fee of uS$ 830000 for 29 days. 1he
cosL of Lhls conLracL was absoluLely
un[usLlfled as lL essenLlally amounLed Lo an
enormous upward revlslon of raLes, afLer
paylng 8s 1.47 crore under Lhe earller
conLracL.
lurLher, Llll AugusL 2010, desplLe
progresslng 70 percenL on Llmellne and
release of 63 percenL of Lhe amounL
conLracLed earller, C8L had nelLher asslsLed
ln Lhe recrulLmenL of sporLs personnel nor
Lralned Lhem before Lhe LesL evenLs as was
requlred under Lhe !anuary 2010 conLracL.
We flnd LhaL, CC's negoLlaLlons for Lhe re-
hlrlng of C8L were hlghly quesLlonable, as,
besldes Lhe exorblLanL raLes, Lhe scope of
work lncluded lLems already done under Lhe
lnlLlal conLracL by C8L or by CC on Lhelr
own e.g.
Conduct|ng |nterv|ews for Ind|an
announcers - 42 of Lhe 33 announcers
flnally selecLed were engaged prlor Lo
slgnlng of Lhe second conLracL.
n|r|ng of presentat|on personne| - 30
sporLs presenLaLlon personnel were
already engaged dlrecLly by CC.
CC also falled Lo uLlllse Lhe servlces of C8L
as per Lhe conLracL. ln early SepLember
2010, CC was processlng Lhe award of
Lender for hlrlng of audlo/vldeo equlpmenL
and even before C8L could flnallse Lhe
venue wlse requlremenLs, Lenderlng was
already done. lL would appear LhaL Lhe CC
offlclals handllng Lhe award of Lhe conLracL
allowed unwarranLed expanslon of scope of
work Lo [usLlfy paymenLs of subsLanLlal
sums of CovernmenL money.
8
9
1be otteoJooce sbeet fot tbe mootb of Moy ooJ Iooe
2010 wos ootbeotlcoteJ by uuC (5potts) ooJ
coootetslqoeJ by IuC (5potts) stotloq tbot kote
compbell wos pteseot foll tlme lo loJlo.
loclJeotolly, we foooJ o Jtoft oqteemeot slqoeJ by Cteq
8owmeo (fot C8) wbete lo ploce of kote compbell, tbe
oome of Ms. kovlto 5ootokoy (wbo wos oo employee of
Oc tlll 2 weeks oftet tbls coottoct wos slqoeJ wltb C8)
ls meotlooeJ.
As per the Ianuary 2010 contract, G8L
was to ass|gn 9 personne| for contract
re|ated act|v|t|es. Wh||e three of them
were to stay |n Ind|a for the ent|re
durat|on of 10 months, the other s|x had
to stay for spec|f|ed number of days. Iees
were accord|ng|y prescr|bed on month|y
and da||y bas|s for these two categor|es.
We ascerta|ned that the three G8L
execut|ves requ|red to stay |n Ind|a d|d
not do so for the ent|re st|pu|ated per|od
as one execut|ve d|d not even v|s|t Ind|a
and was pa|d Q 7S00 USD per month for
7 months. CC off|c|a|s act|ve|y co||uded
by du|y cert|fy|ng the|r payment |nvo|ces
and work, desp|te the|r absence from
Ind|a. Shr| ASV rasad, IDG (Sports) even
cert|f|ed the presence of one execut|ve
Ms. kate Campbe|| , who never v|s|ted
Ind|a.
1he ent|re c|a|m for the per|ods that the
execut|ves were not ava||ab|e |n Ind|a
cou|d be termed as fraudu|ent. nowever,
even on a proport|onate bas|s, such
fraudu|ent payments amounted to
ks 40.13 |akh (USD 89186).
8
9
Iraudu|ent payment to
Great 8|g Lvents (G8L)
Whlle CC lndlcaLed LhaL Lhey would make
deducLlons from Lhe remalnlng 10 percenL
paymenL, Lhe balance wlLh CC would noL
cover Lhe excess paymenL.
ChapLer 13 - SporLs
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
SepLember 2010. lnLeresLlngly, Lhe
newspaper adverLlsemenL dld noL even
menLlon wheLher Lhe equlpmenLs are Lo
be hlred or purchased.
CC added a resLrlcLlve clause of
experlence of CWC, Aslan, Clymplcs or
World Mega SporLs CompeLlLlon, Lhus
ensurlng even less compeLlLlon.
Cnly Lwo responses were recelved, afLer
negoLlaLlons, Lhe conLracL was awarded
aL a LoLal cosL of 8s 6.73 crore.
lurLher, Lhe vendor ralsed an addlLlonal blll
for 8s 1.28 crore, on accounL of a clalm of
supplylng addlLlonal equlpmenL (afLer
keeplng C8L lnformed), CC had no
knowledge of Lhls addlLlonal supply.
C8L's performance under Lhe conLracL

enLered ln SepLember 2010 was also
deflclenL:
AgalnsL a commlLmenL Lo conducL aL
leasL slx Lralnlng workshops wlLh sporLs
presenLaLlon managers/ asslsLanLs and
announcer, C8L conducLed only four
workshops.
C8L was Lo provlde audlo sysLems,
audlo producLlon sysLems, vldeo
producLlon equlpmenL and
communlcaLlon equlpmenL aL all
venues, lncludlng nlne lnsLanL 8eplay
10
machlnes aL cosL of uSu 23933 . Whlle
Lhe advance paymenL Lo C8L was
lncreased Lo 30 percenL on Lhls preLexL,
Lhere was no evldence LhaL Lhey
provlded Lhese equlpmenLs. lnsLead, CC
hlred Lhese equlpmenLs separaLely aL a
cosL of 8s 6.73 crore.
10
lot tbls, ftelqbt cbotqes u5u 15000 wete olso polJ to
tbem.
13.4.3 Lxorb|tant n|r|ng of Aud|o v|deo
Lqu|pment for Sports presentat|on:
uesplLe hlrlng expenslve consulLanLs for

sporLs presenLaLlon, CC reallsed lLs
requlremenL for renLlng of audlo and vldeo
equlpmenL only on 4 SepLember 2010,
when a Lender was floaLed. 1he conLracL
was awarded Lo Modern SLage vL. LLd aL a
cosL of 8s 6.73 crore. We found Lhe award
process Lo be flawed:
1he newspaper adverLlsemenL only gave
noLlce of a deLalled adverLlsemenL on
Lhe CC's webslLe whlch was noL
avallable Llll 9 SepLember 2010. 1he
webslLe adverLlsemenL was avallable
only for one day (10 SepLember 2010)
and Lhe Lechnlcal bld was opened on 11
1o eva|uate the reasonab|eness of the
h|re charges, we |nv|ted quotat|ons for
purchase of the aud|o, v|deo
equ|pments h|red by the CC from the
Modern Stage vt. Ltd. In response, two
quotat|ons were rece|ved. 1he quoted
pr|ce for purchase was around ks. 3.S
crore, as opposed the h|re charges of ks
6.7S crore pa|d by CC. C|ear|y, the h|r|ng
process was non-transparent and the
charges exorb|tant.
C
n
A
1
L
k
Games 8rand|ng
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
14
6omes brondinq essentio//y invo/ved runninq the 6omes News 5ervice {6N5) ond other
press operotions, communicotion ond morketinq, ond "imoqe ond /ook" {i.e. promotinq o
unique 6omes /ook ond identity throuqh bonners ond qrophics), this wos hond/ed throuqh
three seporote functiono/ oreos.
we found thot the oppointment of 5hri Monish kumor os uirector, Press Operotions ond
his subsequent promotion wos irrequ/or. uespite numerous comp/oints obout his
behoviour, no oction wos token ti// /ote-5eptember 2010, when he wos tronsferred out of
Press Operotions, just eiqht doys before the 6omes.
1he exorbitont cost of ks. 10 crore for the 6omes News 5ervice {6N5) controct {oqoinst the
initio/ budqet of just ks. 0.5 crore) wos due to o decision to qo in for outsourcinq {os
oqoinst the interno//y deve/oped option used ot Me/bourne-cw6 200) ond o/so on
occount of f/owed tenderinq procedures {with re-tenderinq) resu/tinq in oword on o sinq/e
finoncio/ bid to lnfostrodo 5ports. 6N5 foi/ed to perform sotisfoctori/y durinq the 6omes,
os the 6omes news content wos inoccessib/e from 5 to 8 October 2010 ond wos rectified
subsequent/y usinq mokeshift orronqements.
1he se/ection of the "6omes Look Provider" for preporinq bonners wos morked by o
c/uster-bosed opprooch {os in the cose of over/oys). lurther, on the pretext of urqency, o
snop biddinq process wos used. 4s in the cose of the venue over/oys controcts, Oc o//owed
severo/ ine/iqib/e vendors to bid, whi/e disquo/ificotions were mode on o se/ective bosis,
we o/so found the some vendor quotinq different prices for the some items ocross c/usters.
1he communicotions lunctiono/ 4reo wos hompered by bod p/onninq, drostic curtoi/ment
of the budqet for odvertisinq compoiqns, ond oword of works on od hoc bosis to se/ected
1v chonne/s ond medio houses.
Cames 8randlng essenLlally lnvolved Lhree
aspecLs:
ress Cperat|ons - 8unnlng Lhe Cames
news Servlce (CnS) for provldlng Lhe
edlLorlal conLenL for Lhe ClS, managlng
Lhe maln and venue press cenLre and
faclllLles for medla persons,
14.1 Cverv|ew
ChapLer 14 - Cames 8randlng
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
Commun|cat|on - CreaLlng awareness

abouL Lhe games, and
Image and Look - deslgnlng logos and
promoLlng a unlform games ldenLlLy
Lhrough graphlcs and banners.
lnsLrumenLal ln procuremenL of medla klLs
wlLhouL due flnanclal approval, where he
also revlsed Lhe quanLlLles and lLems on hls
own, aL Lhe Llme of placlng Lhe order. CLC,
CC decllned Lo glve ex-posL facLo approval
and ordered for recoverles from Lhe
concerned offlclals.
lnLeresLlngly, Lhough Shrl Manlsh kumar's
performance ln ress CperaLlons was far
from saLlsfacLory, he was promoLed from
ulrecLor Lo uuC. lurLher on hls Lransfer, Shrl
Manlsh kumar dld noL hand over records Lo
hls successor. 1hus, durlng Lhe Cames, Lhe
ress CperaLlons lA had no access Lo lLs
own records, lncludlng Lhe CnS conLracL
documenLs (and Lhe obllgaLlons of Lhe CnS
provlder). AlLhough Lhe maLLer was broughL
Lo Lhe noLlce of hlgher managemenL, no
acLlon was Laken on Lhls lssue.
14.2.2 Games News Serv|ce
14.2.1 Appo|ntment and kemova| of
Shr| Man|sh kumar as D|rector,
ress Cperat|on
1he appolnLmenL of Shrl Manlsh kumar as

ulrecLor, ress CperaLlons was lrregular:
ln SepLember 2008, Shrl Manlsh kumar
was appolnLed as ulrecLor, ress
operaLlons.
AfLer 13 days of hls appolnLmenL, Shrl
kumar lnformed Shrl LallL 8hanoL LhaL
he was unwllllng Lo accepL Lhe posL aL
Lhe remuneraLlon offered.
CC kepL Lhe posL vacanL for anoLher 6
monLhs and Lhen lnLervlewed Shrl
Manlsh kumar agaln, offerlng hlm a
conslderably hlgher salary. 1he posL was
nelLher adverLlsed openly nor any oLher
lnLervlews conducLed.
uue Lo complalnLs regardlng hls behavlour,
Shrl Manlsh kumar was Lransferred ouL of
ress CperaLlons [usL 8 days before Lhe
commencemenL of Lhe games Lo Lhe
SusLalnablllLy and LnvlronmenL luncLlonal
Area offlce wlLhouL any speclflc charge.
Larller ln AugusL 2010, a forelgn hlre of Lhe
CC, Shrl Cnanapragasam, responslble for
press operaLlons across all venues, had lefL
Lhe organlsaLlon, complalnlng abouL Shrl
Manlsh kumar's mlsbehavlour, buL CC dld
noL conducL an lnqulry lnLo Lhese
complalnLs. Shrl Manlsh kumar was also
14.2 ress Cperat|ons
0ames
kews
8erv|ce
|aIarmal|aa
la Vea|a jersaas
al Vea|a
Cealres
B|araj||ta|
aela||s aaaal
sjarljersaas,
leams elt.
Iar C|8
|alerIate
w|l| ames
|aIarmal|aa
8yslem aaa
T8R
llqote 14.1 - Comes News 5etvlce
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1he Cames news Servlce (CnS) supplles Lhe
edlLorlal conLenL for Lhe Cames lnformaLlon
SysLem (ClS) l.e. aLhleLe blographles,
records, background, revlews, prevlews
from Lhe compeLlLlons eLc. CC awarded Lhe
CnS conLracL Lo lnfosLrada SporLs ln !une
2010 aL a cosL of uS $ 20.60 mllllon. We
found LhaL Lhe award was lrregular:
An 8l was lssued ln !anuary 2010 only
on Lhe CC's webslLe, and wlLhouL
presenLlng any lasL daLe for submlsslon,
global Lenderlng was noL followed. Cnly
one bld from lnfosLrada SporLs was
recelved.
CC reLendered Lhe work ln March 2010,
buL agaln recelved only one bld from
lnforsLrada SporLs.
AfLer Lhree monLhs, ln !une 2010 CC
awarded Lhe CnS conLracL Lo lnfosLrada
SporLs:
CC also showed oLher favours Lo lnfosLrada
SporLs:
CC deducLed only 8s. 3 lakh as
performance securlLy agalnsL Lhe
requlred amounL of 8s 43.30 lakh.
CC made paymenLs ln forelgn currency
(uSu), wlLhouL approval, resulLlng ln
addlLlonal flnanclal burden of aL leasL
8s. 38.09 lakh due Lo currency
flucLuaLlons. Lven Lhe converslon raLe
applled aL Lhe Llme of negoLlaLlon was
lncorrecL.
CC accepLed Lhe llablllLy for servlce Lax
paymenL of 8s 0.94 crore wlLhouL Lhe
L8's approval, alLhough Lhe LCl
sLlpulaLed oLherwlse.
1he Lerms of paymenL were also varled
maLerlally from Lhe commerclal bld ln
favour of Lhe vendor. 1he vendor had

demanded 30 per cenL paymenL Llll Lhe
flrsL dellvery (wlLh 20 per cenL wlLhln 10
days of slgnlng of Lhe conLracL) whlle Lhe
CC agreed Lo pay 30 percenL (wlLh 20
per cenL wlLhln 10 days of conLracL
slgnlng). 1he conLracL also lrregularly
provlded for advance paymenL of 70
percenL.
1he lnlLlal budgeL of 8s. 0.36 crore for CnS
was based on Lhe lnLernal developmenL
model adopLed for Melbourne CWC-2006.
Powever, CC lncurred 8s. 10.00 crore
(lncluslve of Laxes) on an ouLsourced CnS.
CC chose noL Lo Lake acLlon on SuC (ress
CperaLlons)' oplnlon recommendlng
engaglng [ournallsLs and unlverslLy sLudenLs
for Lhls Lask, Lhe relevanL noLlngs of Lhe
SuC were mlsslng from CC's records.
lurLher, lnfosLrada hlred mosL of lLs
manpower requlremenL for CnS locally.
We found LhaL Lhe exorblLanLly prlced CnS
falled Lo perform saLlsfacLorlly durlng Lhe
Cames, as Lhe Cames news conLenL was
lnaccesslble from 3 Lo 8 CcLober 2010 due
Lo Lechnologlcal gllLches. 1he ClS, whlch
was supplled by Swlss 1lmlng Cmega and
was Lo recelve edlLorlal conLenL from CnS,
dld noL perform saLlsfacLorlly, as polnLed
ouL ln ChapLer 12. CC conflrmed LhaL Lhe
lnformaLlon could noL be dlsplayed because
no LesLlng was carrled ouL prlor Lo Lhe
evenL. llnally on 8 CcLober 2010, a
makeshlfL arrangemenL was made Lo
provlde elecLronlc access Lo CnS
lnformaLlon ln ul formaL. Lven Shrl Mlke
Pooper, CLC CCl conflrmed Lhe dlfflculLles
experlenced by broadcasLers and medla-
persons due Lo Lhe malfuncLlonlng of CnS.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1he successful execuLlon of Lhe Cames
requlred bulldlng and ensurlng conslsLency
ln Lhe lmage and look for CWC-2010.
14.3 Image and Look
14.3.1 Graph|c Des|gn
CC lssued a llmlLed 8l ln !une 2008 for
appolnLmenL of a Craphlc ueslgn Agency, ln
response Lo whlch Lwo blds were recelved.
CC declared Lhe L-2 bldder, ldlom ueslgn
and ConsulLancy Lo be Lechnlcally
superlor" (afLer openlng of commerclal
blds) and lssued Lhe LCl Lo lL ln !uly 2008, Lo
maLch Lhe L-1 bld. CC flnally slgned Lhe
conLracL wlLh ldlom ueslgn and ConsulLancy
1
only ln november 2008 on furLher relaxed
paymenL and performance guaranLee
Lerms.
lurLher, Lhe vlsual ldenLlLy concepL for
Cames (logo, mascoL, colour paleLLe,
plcLogram, sub-graphlcs and sub brands)
could be flnallsed only ln !uly 2009, delaylng
oLher mllesLones for lmage and look
acLlvlLles.
14.3.2 Se|ect|on of
"Games Look rov|der"
CC hlred Lwo consulLanLs on nomlnaLlon
basls only ln CcLober 2009 for scoplng and
cosLlng Cames brandlng.
1he Cames Look rovlder was Lo promoLe a
unlform game ldenLlLy and look Lhrough
graphlcs, banners eLc aL all venues.
AlLhough scoplng was compleLed ln CcLober
2009, for lnexpllcable reasons, Lenderlng
for Lhls work was Laken up only ln !une
2010, encouraglng deflclenL Lenderlng
procedures on preLexL of urgency .
CC replled LhaL conslderable Llme was spenL
ln reworklng Lhe enLlre 8CC for venues and
clLles Lo flL wlLhln Lhe re-approprlaLed
budgeL whlch was recelved ln !une 2010.
CC adopLed a clusLer" based approach (on
a slmllar paLLern as venue overlays), wlLh
work dlvlded ln 9 clusLers coverlng all
venues and non venues. CC sLaLed LhaL Lhls
approach was adopLed wlLh CClC's
approval ln vlew of cosL effecLlveness, ease
1
lJlom ueslqo ooJ coosoltoocy oskeJ fot sepotote
poymeot fot opptovol of Jeslqo (ott wotk) ooJ
teJoctloo lo petfotmooce qootootee.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
of operaLlons and pauclLy of Llme. Powever,
we found LhaL Lhls clusLer based approach
led Lo several lrregularlLles and lncreased
cosL:
1he drafL 8l lnlLlally conLalned an

unusual clause for snap blds"whlch was
deleLed aL Lhe lnslsLence of
ulrecLor(rocuremenL) 1hese snap blds
were laLer called for from four clusLers
where Lhe devlaLlon ln prlces was more
Lhan 10 percenL of Lhe esLlmaLed cosL,
resulLlng ln undue beneflL Lo Lwo
vendors (eacock Medla and Pannu
AdverLlslng) who were noL L-1 before
Lhe snap blds buL were flnally awarded
Lhe conLracL. ln reLrospecL, Lhls
appeared Lo be a pre-medlLaLed sLraLegy
Lo favour selecLed vendors.
AmblgulLy on Lhe Lurnover ellglblllLy
crlLerla for blddlng for mulLlple clusLers
2
was noL recLlfled , leadlng Lo lower
compeLlLlon. lL was noL clear wheLher
annual Lurnover of 8s. 4 crore or more
was requlred ln each of Lhe Lhree
precedlng flnanclal years or any one of
Lhem.
2
Jesplte beloq poloteJ oot by ultectot (ltocotemeot).
Iune 2010 kI Issued
CuL of nlne blds, Lwo were
re[ecLed ln pre-quallflcaLlons.
AfLer Lechnlcal and
commerclal blddlng , clusLer-
wlse, L1 selecLed for nlne
clusLers
1hree rounds of negoLlaLlons
held wlLh L1 bldder
lasL Lrack commlLLee
approved Lhe negoLlaLed
prlces for clusLer 1,2,3,7,8
and called for snap bld" for
Lhe oLher 4 clusLers Lo all 7
bldders and awarded work on
Lhe basls of Lhese snap blds
Iu|y
2010
Iu|y and
August
2010
1oble 14.1 - cbtoooloqy of eveots
fot selectloo of Comes look ltovlJet
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
As per Lhe condlLlons of snap blds, all

Lechnlcally quallfled flrms were requlred
Lo submlL Lhe order of preference for
award of conLracLs for dlfferenL clusLers.
We found LhaL blds of dlfferenL bldders
and L-1 prlces for Lhelr preferred
clusLers maLched wlLh almosL unreal
preclslon, lndlcaLlng exlsLence of a
carLel.
As ln Lhe case of Lhe venue overlays
conLracLs, successful vendors for dlfferenL
clusLers had quoLed dlfferenL raLes for same
lLems and CC accepLed lL. Also, Lhe same
vendor (ueslgn ulalogue) quoLed dlfferenL
prlces for same lLems ln Lhe dlfferenL
clusLers. Pad CC negoLlaLed raLes ln
dlfferenL clusLers Lo maLch Lhe lowesL lLem
wlse raLes, across clusLers, Lhey could have
achleved savlngs of 8s 2.04 crores across
Lhe clusLers (deLalls ln Annexe- 14.1).
M|rror|ng the over|ays contract, CC enterta|ned severa| vendors who cou|d not supp|y the
requ|red documents or were |ne||g|b|e. We a|so found that d|squa||f|cat|ons were made
se|ect|ve|y.
Wh||e two b|dders were d|squa||f|ed for not subm|tt|ng cert|f|cate of factory ||cense]
cert|f|cate from the o||ut|on Contro| 8oard, CC accepted a temporary ||cense from
another b|dder (eacock Med|a ) and even a cert|f|cate |n the name of a s|ster concern
from yet another b|dder (nannu Advert|s|ng), both of whom were f|na||y awarded
contracts.
Iurther, koop S|gn and Graph|cs, a b|dder who had subm|tted mu|t|p|e b|ds, one
|ndependent|y and one |n consort|um, was g|ven an opportun|ty to se|ect and propose |ts
preferred b|d and was awarded a contract.
As |n the case of the venue over|ays contract (refer Chapter-9), the annua| turnover of |co
nong kong was accepted on the bas|s of se|f cert|f|cat|on, and they were a||owed to b|d for
a|| c|usters.
Cons|derat|on of |ne||g|b|e vendors
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
(as lL was anLlclpaLed LhaL Lhe CWC
LlckeLs would sell on Lhelr own), and
Award of works on ad hoc basls Lo
selecLed 1v channels and medla houses.
lnLernal conLrols ln Lhe luncLlonal Area
were very weak as Lhere was no
lnsLlLuLlonal memory and Lhe flles and
records made avallable Lo audlL were
lncompleLe.
14.3.3 Lxecut|on of Games Look

rov|der Contract
AlLhough Lhe works were awarded for 8s
23.94 crores, afLer furLher physlcal
verlflcaLlon, Lhe scope of work was reduced
Lo 8s 20.33 crores, flnally, Lhe work
execuLed by Lhe vendors was llmlLed Lo only
8s 14.43 crores. 1hls decrease was largely
due Lo CC's fallure ln ensurlng Llmely
accredlLaLlon and permlsslons, coupled wlLh
llmlLaLlon of Llme avallable for execuLlon.
14.4.1 Cverv|ew
AlLhough Lhe CommunlcaLlon funcLlonal

area was operaLlng slnce 2007, lLs operaLlon
plan was prepared only ln Aprll 2009,
revlsed Lwlce, and flnallsed ln March 2010.
1he funcLlonal area was requlred Lo creaLe
awareness abouL Lhe Cames, promoLe
LlckeLlng, merchandlslng and sponsorshlp
for Lhe Cames, and creaLe Cames Llme bulld
up Lo supporL specLaLor servlces.
1hese ob[ecLlves could noL be achleved due
Lo:
8ad plannlng,
8educLlon of Lhe budgeL from Lhe lnlLlal
amounL of 8s. 82.02 crore Lo 8s.68.34
crore Lo 8s.38.34 crore ln !une 2010.
1hls forced curLallmenL of
adverLlsemenL campalgns for Lhe C88
domesLlc leg,, LlckeL markeLlng, LesL
evenLs, re Cames, Cames and osL
Cames adverLlsemenLs, lnLerneL
campalgn and dlrecL medla relaLlons,
lnlLlal relucLance on Lhe parL of senlor
managemenL of CC for markeLlng efforLs
14.4.2 Award of contract on ad hoc bas|s
to se|ected 1V channe|s
CC awarded conLracLs for 8s. 3.78 crore for
producLlon and broadcasLlng of
commerclals for promoLlng of CWC-2010 Lo
Cnn-l8n and nu1v. An arblLrary approach
was followed, wlLh no plannlng for speclflc
channels and Llme sloLs, cosL beneflL
analysls, benchmarklng of raLes and
Lenders. roposals were consldered, ln an
ad hoc manner, as and when a proposal was
recelved, no form of compeLlLlve Lenderlng
was adopLed. We had no assurance abouL
Lhe compeLlLlveness of Lhe raLes quoLed by
Lhese channels and Lhe need and usefulness
of Lhe proposals.
lrom March 2010 Lo !une 2010, Lhe enLlre
pre games publlclLy and sponsorshlp
publlclLy was done only on nu1v and Cnn-
l8n.
lurLher, alLhough CC had rlghLs Lo LelecasL
commerclals produced by Lhese channels
(parLlcularly for celebrlLy fllms, speclal
eplsodes on developmenL of games) lL
never used Lhese commerclals. lnsLead, lL
separaLely spenL 8s.0.81 crore on Lhe
producLlon of fllms durlng Cames Llme.
14.4 Commun|cat|ons
Iunct|ona| Area
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
14.4.3 Non-ut|||zat|on of VIk worth
ks. 16.20 crore dur|ng the Games
As parL of Lhe lnLernaLlonal broadcasLlng
3
conLracLs , CC goL vlk (value ln klnd)
sponsorshlp ln Lhe shape of commerclal
spoLs for promoLlon of Lhe Cames. Whlle
some of Lhese channels broadcasL Lhelr own
fllms for Cames publlclLy, Lhe vlk on oLher
channels was noL uLlllzed durlng Lhe Cames.
lnsLead, CC awarded separaLe conLracLs
worLh 8s. 0.73 crore for promoLlon of
games lnLernaLlonally followlng deflclenL
Lenderlng processes Lo 88C, Coogle, MSn
and ?ahoo. lncldenLally, lnadequaLe
publlclLy was one of Lhe reasons for low sale
of LlckeLs ln oLher parLlclpaLlng counLrles.
14.4.4 Lmpane|ment of Advert|s|ng
Agency
ln 2007, CC empanelled Lhree
adverLlsemenL agencles, namely, !W1,
CuanLum, and MercanLlle for effecLlve
publlclLy and communlcaLlon and for
handllng all lndoor and ouLdoor publlclLy.
Work of 8s.10.76 crore was execuLed by
Lhese agencles. kecords regard|ng se|ect|on
of these f|rms were not furn|shed by the
CC. ln uecember 2009, a fresh
empanelmenL of adverLlsemenL agencles
was consldered, and approved, buL noL
pursued furLher.
14.4.S Non-ut|||sat|on of aud|o and v|sua|
commerc|a| va|u|ng ks. 1.27 crore
CC falled Lo uLlllse audlo and vldeo
segmenLs produced aL a cosL of 8s. 1.27
crore as lL revlsed lLs medla plan Lo cover
only Lhe prlnL medla for Lhe launch of logo
and promoLlon on Lhe 1000 days Lo go"
campalgn.
CC f|oated a kI for appo|ntment for
sports consu|tant |n the
Commun|cat|on Iunct|ona| Area |n
Iune 2010. A|though the est|mated
va|ue of the contract was on|y ks. 2
crore, the kI st|pu|ated pre-
qua||f|cat|on cr|ter|a of an abnorma||y
h|gh turnover of ks. 2S0 crore,
|gnor|ng DDG(rocurement)'s adv|ce .
Cn|y two out of three b|ds rece|ved
met th|s cr|ter|on, and the work was
awarded |n Iu|y 2010 at a negot|ated
cost of ks. 1.90 crore to ercept
L|m|ted. 1h|s arb|trary turnover
requ|rement of ks. 2S0 crore was, |n
our op|n|on |nc|uded to restr|ct
compet|t|on.
Abnorma||y h|gh spec|f|cat|on
restr|ct|ng compet|t|on
3
wltb Netwotk 1eo, 1vN2 ooJ 5ootb Aftlco 8tooJcostloq
cotpototloo.
1
A looyotJ ls o tope ot cotJ qeoetolly woto otoooJ tbe oeck to cotty lJeotlty cotJs ooJ slmllot objects.
C
n
A
1
L
k
Workforce and Cther Support|ng Act|v|t|es
of the Crgan|s|ng Comm|ttee
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1
we found serious deficiencies in the oword of the workforce consu/toncy controct to o
consortium of &Y ond k5. 1he tenderinq process wos c/eor/y toi/ored to fovour k5.
1here were severo/ deficiencies in the controctuo/ c/ouses, which tended to fovour the
interests of the consu/tont, os we// os in the execution of the controct.
we found thot the Oc monoqed the workforce in on orbitrory ond od hoc monner, /eovinq
omp/e scope for potronoqe, fovouritism ond nepotism in the oppointment ond promotion
of officio/s. 5ecurity ond reference checks were not corried out for most emp/oyees, ond
certoin emp/oyees, whose post records shou/d hove rendered them unfit for oppointment
in the Oc, were neverthe/ess oppointed. lurther, the Oc wos qross/y understoffed ti// 2009,
but wos qross/y overstoffed by 5eptember 2010 {with this overstoffinq beinq requ/orised
post focto by the 8).
keqordinq the 4ccommodotion lunctiono/ 4reo, we found orbitroriness in hirinq of
oportments for Oc's consu/tonts ond emp/oyees ond one cose of potentio/ conf/ict of
interest in hirinq f/ots. Oc hod nominoted 4shok note/ os the f/oqship hote/ for cw6-2010.
1houqh between 155 to l99 rooms were vocont in 4shok note/ on o doi/y bosis, Oc wos
inexp/icob/y unwi//inq to occommodote technico/ officio/s in the some hote/ where quests/
officio/s were occommodoted, ond booked occommodotion for them in 11 other hote/s,
resu/tinq in infructuous expenditure of ks. 1.15 crore.
we found 492 persons who hod not received security c/eoronce were incorrect/y /isted by
the 4ccreditotion lunctiono/ oreo in the doto for the lnteqroted 5ecurity 5ystem, which
indicoted thot the occreditotion system wos not fo//owed strict/y. we o/so found
procurement of 1.5 /okh /onyords ot o cost of ks. 0.8 crore with on inexp/icob/e fire
retordont requirement of 800 deqrees ce/sius.
controcts for venue c/eoninq services were oworded irrequ/or/y, usinq o c/uster-bosed
opprooch, to just two controctors. kestrictive e/iqibi/ity criterio were opp/ied in o biosed
monner. 8 out of 9 pockoqes went to 422 Mointenonce ond nqineerinq 5ervices, which
wos o/so enqoqed by Oc for office outomotion services.
4/thouqh o seporote /oqistics controctor wos hired {with vlk sponsorship), most of the
lunctiono/ 4reos mode seporote orronqements. 1his resu/ted in informotion on the
/ocotion ond distribution of ossets not beinq ovoi/ob/e with the Oc. 1he Procurement
lunctiono/ 4reo wos o/so equo//y underuti/ised.
we found undue fovour in owordinq the insuronce brokeroqe controct to Morsh/ 1rinity,
os o/so in the se/ective c/ouses for oppointment of insuronce componies {which fovoured
the interests of Morsh/ 1rinity, rother thon the Oc).
1
ChapLer 13 - Workforce and CLher SupporLlng AcLlvlLles of Lhe Crganlslng CommlLLee
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1S.1 Workforce
wlLh regard Lo an annual Lurnover of 8s.
30 crore ln forelgn currency, and
experlence of provldlng advlsory
servlces Lo aL leasL Lwo mulLl-sporL
evenLs of Lhe sLaLure of Clymplcs, Aslan
Cames or CommonwealLh Cames.
Cnly 2 ouL of four bldders quallfled, LkS
responded as an lndependenL enLlLy, and
was found lnellglble.
2
AL Lhe 8l sLage, CC relaxed Lhe crlLerla
and lssued 8l Lo Lhree agencles vlz.
rlce WaLer Coopers, LrnsL and ?oung
vL. LLd. and Pomes Clen lnsLlLuLe of
1afe, AusLralla. Cnly Lwo responded wlLh
blds, boLh of whlch were Lechnlcally
quallfled. LkS was allowed Lo form a
consorLlum wlLh L&? afLer Lhe LCl
evaluaLlon, whlch ensured lLs Lechnlcal
ellglblllLy, Lhe oLher bldder was rlce
WaLerhouse Coopers.
1S.1.1 Appo|ntment of Workforce

consu|tant
13.1.1.1 SelecLlon of consulLanL

1o bulld capable and well-managed
workforce and Lo deflne LransparenL,
lmplemenLable and approprlaLe human
resource pollcles, CC slgned an agreemenL
ln March 2008 wlLh Lhe consorLlum of LrnsL
and ?oung (L&?S) vL. LLd. and LvenL
knowledge Servlces (LkS) for workforce
consulLancy servlces aL a cosL of 8s. 22.36
crore.
As ln Lhe case of oLher conLracLs wlLh LkS
(refer ChapLer 9, ara 9.1), we found serlous
lrregularlLles ln Lhe award of Lhls conLracL,
wlLh clear lnLenL Lo favour LkS:
Clobal Lenderlng procedures were noL
followed. lnsLead, ln May 2007 CC
floaLed an LCl wlLh resLrlcLlve clauses
2
Ooe yeot expetleoce lo oJvlsoty copoclty fot wotkfotce
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
of pockeL expenses as agalnsL 8s. 0.69
crore Lo L&? Lhe lead parLner.
Iu|| payment schedu|ed before the
comp|et|on of work: Whlle Lhe conLracL
was Llll 13 november 2010, Lhe flnal
paymenL Lo Lhe consulLanL was Lo be
made by Aprll 2010.
We noLlced several regularlLles ln Lhe
execuLlon of Lhe conLracL:
Non ut|||zat|on of output documents:
AlLhough Lhe consulLanL had submlLLed
73 pollcy documenLs (lncludlng
luncLlonal Area operaLlonal plans), we
found no evldence of Lhelr acLual use.
MosL lAs were noL even aware of Lhe
Llmellnes prescrlbed ln Lhese
operaLlonal plans.
ke|ease of payment due to
m|s|nformat|on: AL Lhe Llme of release
of a paymenL lnsLalmenL ln !une 2010,
when Lhe CLC lnqulred abouL
LermlnaLlng Lhe conLracL of LkS-L&?, he
was mlslnformed by Shrl Abrar Pussaln,
uuC LsLabllshmenL LhaL Lhe conLracL
was Lo end ln !uly 2010 and 90 days
noLlce ls requlred Lo LermlnaLe Lhe
conLracL. Pe Lherefore, recommended
LhaL Lhere was no opLlon buL Lo release
Lhe paymenL, whlch was done. Powever,
for lnexpllcable reasons, Lhe nexL
lnsLalmenL was noL released Lo LkS.
Non revocat|on of bank guarantee:
1hough Lhe consulLanL falled Lo dellver
Lhe osL CommonwealLh Cames uelhl
8eporL" and Lwo P8 reporLs (cosLlng 8s.
2.82 crore as per Lhe commerclal bld),
CC dld noL lnvoke Lhe performance bank
13.1.1.3 lrregularlLles ln execuLlon
CC Look recourse Lo Lhe 8l sLlpulaLed

condlLlon of conslderlng only Lhe
Lechnlcally superlor" bldder, and
opened only one flnanclal bld - LhaL of
LkS-L&? consorLlum, whlch was
awarded Lhe work ln March 2008. 1hls
clause ln Lhe 8l ls agalnsL Lhe exLanL
CvC guldellnes and CCl rules, and was
evldenLly puL ln Lo ensure LhaL CC could
predeLermlne Lhe wlnnlng bld.
We found LhaL Lhe conLracL wlLh LkS- L&?
lncluded many clauses whlch were
deLrlmenLal Lo Lhe lnLeresLs of CC:
Absence of schedu|e for de||very of
serv|ces: Whlle Lhe conLracL had a
deLalled llsL on dellverables from CC, lL
dld noL lndlcaLe Lhe dellverables from
Lhe conLracLor and assoclaLed Llmellnes.
Wastefu| expend|ture of ks. 0.31 crore
for compensat|on structure of CC
emp|oyees - 1he consulLanL's reporL on
compensaLlon sLrucLure, cosLlng 8s. 0.31
crore, was redundanL, slnce CC already
had an L8 approved compensaLlon
sLrucLure ln place slnce !anuary 2008.
lurLher, CC's compensaLlon sLrucLure
was noL alLered ln Lhe llghL of Lhe
consulLanL's reporL.
referent|a| terms of engagement for
the consort|um member: lnsLead of
deallng wlLh Lhe lead parLner Lhe Lwo
parLners of Lhe consorLlum were pald
separaLely and ln dlfferenL currencles as
per Lhe conLracL. 8s. 7.23 crore was Lo
be pald Lo LkS ln forelgn currency.
SeparaLe and hlgher ouL of pockeL
expenses were also allowed for LkS.
1hey were allowed 8s. 2.20 crore for ouL
13.1.1.2 laulLy conLracL wlLh consulLanL
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
perqulslLes and hlgher salarles Lo a larger
number of offlclals.
1he malnLenance of personnel flles was
exLremely poor, and no flles were
malnLalned ln respecL of Lhe Chalrman,
SecreLary Ceneral, vlce Chalrman and
1reasurer. Cur scruLlny of 191 personnel
flles ln Lhe rank of ulrecLor and above
revealed several lrregularlLles:
Ident|f|cat|on of requ|rements: 1he
sLlpulaLed process for ldenLlflcaLlon of
requlremenLs for subsequenL
13.1.2.2 lrregularlLles ln Lhe appolnLmenL
of ersonnel
13.1.2.1 Lxcess AppolnLmenL of SLaff

1lll 2009, CC lacked crlLlcal manpower as
per lLs requlremenLs. Powever, by
SepLember 2010, lL had 2066 personnel ln
poslLlon, agalnsL Lhe sancLloned sLrengLh of
1131. 1hls was regularlsed posL facLo by Lhe
L8 ln a meeLlng held [usL 12 days before Lhe
Cames. lncldenLally, Lhe proporLlon of
excess sLaff aL hlgher levels was
subsLanLlally hlgher. 1here were 40 excess
personnel aL uuC level where sancLloned
sLrengLh was 9 and 3 were excess aL !uC
level where sancLloned sLrengLh was 2.
lurLher, Lhe posLs of uC, !uC, and CCC
were equaLed, faclllLaLlng dlsLrlbuLlon of
1S.1.2 Arb|trary and Ad hoc Workforce
management
Whlle Lhe Ceneral CrganlzaLlonal lan of CC
esLabllshed Lhe managemenL sLrucLure of
Lhe CC and had Llmellnes for hlrlng of sLaff
clearly lald ouL, we found LhaL Lhe CC wenL
abouL workforce managemenL ln an
arblLrary and ad hoc manner, leavlng ample
scope for paLronage, favourlLlsm and
nepoLlsm.
guaranLee of 8s. 2.23 crore, whlch was
valld Llll 13 november 2010.
Short deduct|on of 1DS amount|ng to
ks. 3.06 Crore: CC deducLed lncome Lax
of uS $ 2.11 lakh [ 10 per cenL, lnsLead
of 42.23 per cenL as appllcable Lo a
ermanenL LsLabllshmenL (L). 1hls
resulLed ln shorL deducLlon of lncome
Lax of 8s. 3.07 crore.
llqote 15.1 - xcess Appolotmeot of 5toff ot Oc

0
300
1000
261
498
1038
2066
11S1
8S9
204 104
2007-08 2008-09
L A k
M
a
n
p
o
w
e
r
SancLloned
AcLual
2009-10 2010-11
1300
2000
2300
ulrecLor Ceneral on nomlnaLlon basls. 1here was no adverLlsemenL or lnLervlew for Lhe posL, and
only an unslgned slngle page blo daLa of Shrl verma was avallable ln Lhe personnel flle. Lven Lhe
daLes of employmenL were noL menLloned ln Lhe blo-daLa. Whlle lL was lndlcaLed LhaL Shrl verma
belonged Lo Lhe lndlan 8allways Servlce of Mechanlcal Lnglneers (l8SML), Lhere ls no lnformaLlon
regardlng hls reLlremenL, nCC from hls former cadre and re-employmenL lnformaLlon. We
ascerLalned LhaL Lhere was a vlgllance lnqulry agalnsL Shrl verma, whlle he was worklng as
Commerclal ulrecLor ln Alr lndla, where he was warned" for lndlscreLlon and error of [udgmenL.
1hls lnformaLlon was noL avallable ln hls personnel flle.
Shr| 1.S. Darbar| : Well before hls formal appolnLmenL wlLh CC , Shrl uarbarl was, ln AugusL 2007,
parL of Lhe evaluaLlon commlLLee for blds of Lhe workforce consulLanLs and was appolnLed as !olnL
ulrecLor Ceneral (8evenue, MarkeLlng and Chalrman's SecreLarlaL) ln !anuary 2009. 1here was no
evldence of any lnLervlew or appllcaLlon from Shrl uarbarl, and Chalrman, CC was klnd enough Lo
wrlLe Lo hls prlvaLe secLor employer for hls early release on Lhe very day of hls selecLlon by Lhe
search commlLLee. CC Look no acLlon on Lhe numerous complalnLs recelved agalnsL hlm from
varlous sources (lncludlng M?AS) from lebruary Lo Aprll 2010. Shrl uarbarl's servlces was
evenLually LermlnaLed ln AugusL 2010 on corrupLlon charges.
Shr| Nach|keta kapur: Shrl nachlkeLa kapur was appolnLed as ulrecLor, roLocol and Medla
8elaLlons ln !uly 2009 and furLher promoLed Lo Lhe rank of uuC. 1he offlclal had been re[ecLed for
Lhe posL of CSu Lo MlnlsLer of SLaLe (MCS) for Women and Chlld uevelopmenL ln lebruary 2008 by
Lhe AppolnLmenL CommlLLee of Lhe CablneL (ACC), whlch sLaLed LhaL he should noL be consldered
for any senslLlve posLs ln fuLure. CC however employed hlm, wlLhouL any verlflcaLlon.
Shr| Vk Verma: ln !uly 2008, afLer reslgnaLlon of Lhe Lhen uC-CC, CC appolnLed Shrl v.k. verma as
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
recrulLmenL was rarely followed.
lurLher, we could noL flnd poslLlon
brlefs, [ob proflle and deslred
quallflcaLlons ln our sample of personnel
flles.
Compet|t|ve sourc|ng of cand|dates:
Whlle CC appolnLed Lhree recrulLmenL
3
agencles for sourclng of candldaLes, less
Lhan 3 percenL of CC's sLaff was hlred
Lhrough Lhem. newspaper
adverLlsemenLs for recrulLmenL were
also rarely followed. We found LhaL ln
167 ouL of Lhe 191 sampled personnel
flles, only one person was consldered
for Lhe parLlcular posL and selecLed.
Appo|ntment of personne| not hav|ng
the requ|s|te qua||f|cat|ons: LkS-L&?
prepared [ob descrlpLlons (wlLh roles
3
A8c coosoltoots, Mo lol Moooqemeot coosoltoot, ooJ 1eom leose-leople 5ttooq coosottlom
and responslblllLles), and requlred
educaLlonal quallflcaLlons and
experlence for each unfllled poslLlon as
of 2008. Powever, CC dld noL Lake noLe
of Lhese [ob descrlpLlons, and appolnLed
persons wlLhouL Lhe requlslLe
quallflcaLlons and experlence. We
noLlced lncompleLe or mlsslng
educaLlonal and experlence cerLlflcaLes
ln 173 ouL of 191 personnel flles.
Secur|ty and keference Checks: We
found deLalls of securlLy/ vlgllance
checks and reference conflrmaLlons ln
only 18 and 2 flles respecLlvely ouL of
191 flles. An lllusLraLlve llsL of
employees, whose pasL records should
have deLerred Lhelr appolnLmenL ln Lhe
CC, ls glven below:

0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
13.1.2.3 non ulsclosure of relaLed
employees:
13.1.2.4 llxaLlon of salary
Whlle Lhere were no formal records or
dlsclosures by employees of Lhelr close
relaLlves worklng ln Lhe CC (desplLe
provlslon for such dlsclosure), CC provlded
us a llsL of 33 such cases who had one or
more relaLlves worklng ln CC. Such a large
number of cases, whlch are easlly
ldenLlflable by CC (wlLhouL formal
dlsclosure records), lndlcaLes rlsk of
favourlLlsm / nepoLlsm ln appolnLmenLs.
We found LhaL employees were
lndlscrlmlnaLely granLed hlgher pay aL Lhe
13.1.2.6 romoLlons ln Lhe CC
Clven Lhe Lemporary naLure of Lhe CC,
Lhere was no provlslon for granL of
promoLlons. neverLheless, CC granLed
promoLlons (mulLlple promoLlons ln some
lnsLances) ln an arblLrary and ad hoc
manner Lo some of lLs employees. We
found LhaL Lhls was apparenLly used as a
form of paLronage:
erformance appralsal, whlch was
supposed Lo be Lhe basls for promoLlon,
was noL avallable ln many cases.
Llme of appolnLmenL. CC dld noL follow Lhe

Col rules for conslderlng Lhe penslon of
reLlred CovernmenL offlcers for deducLlon,
whlle flxlng Lhelr pay aL Lhe Llme of re-
employmenL.
We found LhaL employees were allowed Lo
leave Lhe organlsaLlon wlLhouL ad[usLlng Lhe
ouLsLandlng loans and advances. AparL
from a serlous lnLernal conLrol fallure Lhls
lndlcaLed Lhe work envlronmenL of
paLronage.
13.1.2.3 unad[usLed advances from
employees
1here was no crlLerla, Llme frame or

process for granL of promoLlons.
7 persons were granLed Lwo promoLlons
ln shorL span of 1-3 years, of whlch 3
were sLaff assoclaLed wlLh C?C-2008,
une, Chalrman SecreLarlaL and uC
SecreLarlaL.
romoLlons were granLed Lo cerLaln
offlclals, desplLe low raLlngs by Lhe
workforce consulLanL of Lhese offlclals on
educaLlonal quallflcaLlon and experlence, as
summarlsed below. Some offlclals were also
promoLed, desplLe less Lhan saLlsfacLory
performance of Lhelr funcLlonal areas.
Name of the Cff|c|a|
Des|gnat|on
Iunct|ona| Area
Loan]advance outstand|ng after
re||ev|ng from CC
Mr. Su[|t an|grah|
V|[ay kumar Gautam
8.8. kaura
8r|g Sun|| Arya
M. Ieychandran
San[ay Moh|ndroo
AuC
CCC
!uC
AuC
AuC
uuC
1echnology
roLocol
1echnology
llnance
1echnology
13,000
83,647
69,313
30,000
30,49,632
67,38,378
1oble 15.1 . AJvooces ootstooJloq oqolost mployees ot tbe tlme of tellevloq
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
4
5be wos qtooteJ two ptomotloos Jesplte tbe obove low totloq
1oble 15.2 . 5toff ptomoteJ Jesplte low totloqs oo
eJocotloool poollflcotloos ooJ expetleoce
Name of the Cff|c|a|
Des|gnat|on
Iunct|ona| Area
Mr. kam Mohan
Dr. G.S. Anand
Dr. G.S 8awa
Mr. Abrar nussa|n
4
Mrs. Indu Anand
uuC
uuC
uuC
ulrecLor
C
Legal and Chalrman SecreLarlaL
venue uevelopmenL and overlays
SporLs and venue uevelopmenL
Workforce
Ceremonles
13.1.2.7 Cases of Cross lrregularlLles ln Workforce ManagemenL
ln SepLember 2007, Shrl vl[ay kumar CauLam, lAS (MaharahsLra
cadre) was appolnLed Lo Lhe posL of CCC, whlch had overall responslblllLy for Lhe dellvery of Lhe
Cames ln addlLlon Lo cerLaln funcLlonal areas. uesplLe complalnLs by hls reporLlng offlcer (Shrl
vk verma, uC) abouL hls performance, Chalrman CC dld noL allow hlm Lo be replaced. Shrl
CauLam was allowed Lo proceed on leave from uecember 2009 for Lhe nexL 10 monLhs
(lncludlng Lhe acLual Cames perlod) and was relleved from Lhe CC w.e.f. 31 CcLober 2010,
whlle sLlll on leave. Shrl CauLam's leave appllcaLlons were addressed dlrecLly Lo Chalrman, CC
and noL Lo Lhe uC. uesplLe hls leave spells never belng formally sancLloned, he was pald full
salary for Lhe perlod.
1here were several lrregularlLles ln appolnLmenL and funcLlonlng of Shrl
Manlsh kumar, uuC ress CperaLlons. ueLalls are already dlscussed ln para 14.1.1
Shrl Mahlndroo was lnLervlewed for Lhe posL of ulrecLor
(lnformaLlon Servlces and neLwork) ln May 2009, buL appolnLed as uuC (lnformaLlon Servlces-
1echnology). Approval was obLalned for a salary of 8s.60,000, buL Shrl Mahlndroo's
appolnLmenL leLLer lndlcaLed hls salary as 8s. 1,00,000 and hls posL as uuC
(1echnology/MarkeLlng).
Wlng Commander Mohla was lnLervlewed ln Aprll 2010
for Lhe posL of uuC (Chalrman SecLL.), when he was also holdlng Lhe posL of SecreLary ln uuA
(SporLs Complex). Pe was appolnLed on 28 Aprll 2010 as uuC (Chalrman SecLL.), buL conLlnued
Lo hold boLh Lhe posLs Llll CcLober 2010.
Ms. Wellnkar [olned Lhe CC durlng C?C-2008, une as a coordlnaLor.
She was Lhen appolnLed as uuC for 'lmage and Look' ln !anuary 2009 by upgradlng Lhe posL
(wlLhouL L8 approval), and was promoLed flve monLhs laLer as AuC 'lmage and Look' wlLh Lhe
approval of Chalrman. We dld noL flnd Ms. Wellnkar's quallflcaLlons and experlence maLchlng
wlLh her [ob proflle.
Shr| V|[ay kumar Gautam:
Shr| Man|sh kumar :
Shr| San[ay k. Mah|ndroo:
W|ng Commander (ketd.) ka[|v Moh|a :
Ms. Sangeeta We||nkar:
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1S.2 Accommodat|on
1S.2.1 Cverv|ew
1he AccommodaLlon luncLlonal Area was

responslble for:
provldlng sulLable accommodaLlon Lo
CC employees and consulLanLs as per
Lhelr conLracLs, and
booklng of hoLel rooms and oLher
arrangemenLs for delegaLes and offlclals.
1S.2.2 n|r|ng of I|ats
CC hlred 38 aparLmenLs ln dlfferenL parLs of
nC8 uelhl for lLs consulLanLs and employees
aL a cosL of 8s. 4.39 crore as renLal charges.
1hls hlrlng was done ln an arblLrary manner
wlLhouL any adverLlsemenLs and prescrlblng
enLlLlemenLs ln Lerms of maxlmum renL,
area eLc. lnexpllcably, Lhe selecLlon of
aparLmenLs was done by Shrl LallL 8hanoL's
offlce, desplLe Lhe exlsLence of a speclflc
luncLlonal Area for accommodaLlon relaLed
lssues. lurLher, we found lnsLances of hlrlng
of mulLlple accommodaLlon for Lhe same
perlod and ldle accommodaLlons, wlLh
avoldable expendlLure of 8s. 0.12 crore.
lurLher, as of March 2011, securlLy deposlL
worLh 8s.0.60 crore for Lhese flaLs was sLlll
lylng wlLh Lhe properLy owners, Lhough
mosL conLracLs had ended ln CcLober 2010.
1S.2.3 8ook|ng of hote| accommodat|on
1he Ashok PoLel was nomlnaLed as Lhe
llagshlp PoLel for Lhe CWC 2010 and was
booked excluslvely for accommodaLlng
guesLs/offlclals from 29 SepLember 2010 Lo
16 CcLober 2010 aL a cosL of 8s 12.01 crore.
Cf Lhe 480 rooms provlded by PoLel Ashok
as many as 133 Lo 399 rooms remalned
vacanL on dlfferenL days durlng Lhe perlod
of reservaLlon. uurlng Lhe same perlod, CC
booked accommodaLlon for lnLernaLlonal
1echnlcal offlcers (l1Cs) and naLlonal
1echnlcal Cfflcers (n1Cs) wlLh 11 oLhers
hoLels aL a LoLal cosL of 8s 3.33 crore. As Lhe
guesL arrlval llsL was flrmed up by Lhen, CC
could have uLlllsed aL leasL 100 rooms ln
flagshlp hoLels Lo accommodaLe Lhe
l1Cs/n1Cs, Lhereby savlng 8s.1.13 crore.
Powever, for some lnexpllcable reason, CC
was apparenLly unwllllng Lo accommodaLe
l1Cs/n1Cs and oLher guesLs ln Lhe same
hoLel.
S
ne wos olso o ttostee of 5olwoo Jocotloo 1tost
In November 2009, CC entered |nto an
agreement w|th Sa|wan Lducat|on
1rust for rent|ng f|ve f|ats for wh|ch
CC u|t|mate|y pa|d ks. 0.33 crore.
Wh||e no deta||s for se|ect|on of these
f|ats were ava||ab|e on record, we
I|ats from Sa|wan
Lducat|ona| 1rust
found that the ent|re process was
done through Shr| La||t 8hanot's
off|ce. 1here |s a d|st|nct poss|b|||ty
that th|s process was conducted
through Shr| Sush|| Sa|wan , a |ega|
adv|sor of CC po|nt|ng to a potent|a|
conf||ct of |nterest. Desp|te know|ng
that these f|ats were |y|ng vacant for a
s|gn|f|cant part of the |ease per|od,
CC cont|nued to reta|n them and pay
rent, resu|t|ng |n expend|ture of
ks 0.21 crore towards rent on
unoccup|ed f|ats.
S
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
AccredlLaLlon luncLlonal Area was
responslble for lssue of accredlLaLlon cards
afLer obLalnlng securlLy clearance. uaLa ln
respecL of accredlLed persons was senL by
Lhe CC Lo LClL, who was responslble for
provldlng Lhe lnLegraLed securlLy sysLem ln
all venues. We found LhaL due Lo CC's
negllgence, 492 persons, who dld noL
recelve securlLy clearance, were llsLed ln Lhe
LClL verlfled daLa as on 12 CcLober 2010.
1hls overslghL was a serlous securlLy flaw
and lndlcaLes LhaL Lhe accredlLaLlon sysLem
was noL followed sLrlcLly.
1hls luncLlonal Area was responslble for
cleanlng and wasLe managemenL aL venues
and non venues, and also for developmenL
of an lnLegraLed WasLe ManagemenL lan.
1he lnlLlal budgeL for Lhls work of 8s.11.22
crore was lncreased ln !une 2010 Lo 8s
31.22 crore.
We found LhaL Lhe consulLanL for cleanlng
and wasLe managemenL was appolnLed only
ln november 2008 and plannlng for Lhls
aspecL was unduly delayed Llll !uly 2009.
1S.3 Accred|tat|on 1S.4 C|ean|ng and waste
management
1S.4.1 Contract for C|ean|ng serv|ces
at Venues
CC Look an lnexpllcable long perlod of 11

monLhs (from CcLober 2009 Lo AugusL
2010) for appolnLmenL of cleanlng
companles for provldlng cleanlng servlces aL
all compeLlLlon and non compeLlLlon
venues, afLer dlvldlng Lhem ln nlne Lender
packages (clusLers). LxcepL for Lender
package Lwo (whlch was awarded Lo
SarvaLra lnLegraLed Servlces aL a cosL of
8s.1.02 crore) all Lhe oLher elghL packages
were awarded Lo A2Z MalnLenance and
Lnglneerlng Servlces for 8s. 19.30 crore.
We found LhaL Lhe Lenderlng process was
deflclenL ln many ways:
1here was no [usLlflcaLlon on record as
Lo why Lhe package/clusLer based
approach was adopLed
1he quallfylng marks for Lechnlcal
evaluaLlon were lowered ln Lhe 8l
from LhaL speclfled ln Lhe LCl,
purporLedly Lo geL more compeLlLlon.
6
7
8
loclJeotolly, 1tlstot otetptlses, wos olso tbe coosottlom
pottoet of ColJ MeJol 5ystems wbo sopplleJ CM5 ( 5ee
poto 1J.5)
fot wblcb sepotote kll wos lssoeJ
loclJeotolly, tbe selecteJ looyotJ cootoloeJ l8u
(lolybtomlooteJ Jlpbeoyl etbet), o cbemlcol boooeJ Joe
to lts botmfol effects oo tbe eovltoomeot ooJ bomoos.
A |anyard |s a cord or rope worn
around the neck to carry the |dent|ty
card. W|thout ascerta|n|ng the need
for |anyards for the accred|tat|on card,
a supp|y order for 1.S |akh |anyards
was p|aced on 1r|star Lnterpr|ses |n
Iu|y 2010 at a tota| cost of ks. 0.68
crore, out of these, 48,040 |anyards
cost|ng ks. 0.22 crore were never
used. Inexp||cab|y, the |anyard
spec|f|cat|ons for f|re retardantness
st|pu|ated w|thstand|ng temperature
of up to 800 degree Ce|s|us, whereas
for the p|ast|c pouch (wh|ch wou|d
conta|n the accred|tat|on card) the
requ|rement was 110 degree Ce|s|us.
We f|nd no ut|||ty for such abnorma|
spec|f|cat|on for the |anyard , except
to restr|ct compet|t|ve tender|ng.
6
7
8
rocurement of Lanyards
by CC
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1he Lenderlng was resLrlcLlve as Lhe LCl

sLlpulaLed an annual Lurnover,
speclflcally relaLed Lo cleanlng servlces,
of aL leasL 8s 3 crore, ln each of Lhe lasL
Lhree flnanclal years, for one Lender
package wlLh a seaLlng capaclLy of up Lo
3000, and 8s.10 crore for blgger venues.
ConsequenLly ouL of Lhe 23 flrms who
responded Lo Lhe LCl, 9 flrms were
dlsquallfled for noL saLlsfylng
prequallflcaLlon crlLerla.
We found LhaL Lhe Lwo successful
bldders, A2Z and SarvaLra, also dld noL
fulfll Lhe requlremenLs lndlcaLed ln Lhe
prequallflcaLlon and Lechnlcal bld
sLages, as deLalls of experlence were noL
provlded by boLh of Lhem. A2Z
submlLLed only Lhe cerLlfled copy of lLs
Lurnover (from whlch Lhe lncome
derlved excluslvely from cleanlng
servlces could noL be deLermlned).
Clearly Lhe evaluaLlon was noL ob[ecLlve.
AL Lhe Lechnlcal evaluaLlon sLage when
A2Z, CleanvenL and lSS lnLegraLed
laclllLy Servlces dld noL submlL Lhe
requlred documenLs, CC conLacLed
Lhem Lo flll ln Lhe gaps lnsLead of
re[ecLlng Lhe blds.
Whlle CC conslsLenLly malnLalned durlng
Lhe Lenderlng process LhaL mulLlple
Lenders would noL be alloLLed Lo Lhe
same vendor, A2Z was flnally awarded
elghL ouL of nlne Lender packages.
lL appears LhaL CC was lnLenL on
beneflLlng A2Z raLher Lhan safe guardlng
lLs own lnLeresLs:
uurlng Lhe prlce reducLlon
negoLlaLlons, Lhe scope of work and
perlod was reduced
A2Z was awarded mulLlple packages
desplLe lack of games
Llme/lnLernaLlonal experlence,
alLhough ulrecLor (Cleanlng and
WasLe ManagemenL) noLed LhaL lL
was beyond Lhe capablllLy of one
slngle vendor Lo brlng ln such a large
workforce for dellvery of servlce.
AlLhough lL was declded ln May 2010
LhaL A2Z would noL underLake any
oLher conLracL Llll lLs asslgnmenL wlLh
CC for CWC ls over, CC lLself engaged
A2Z for offlce auLomaLlon work ln
!une 2010. 1hus CC relaxed Lhe
condlLlon ln favour of A2Z.
lnLeresLlngly, when A2Z had applled
for anoLher conLracL of offlce
malnLenance/housekeeplng of CC, lL
was dlsquallfled. We fall Lo
appreclaLe why such relaxaLlon was
consldered lmporLanL, when Lhere
was no dearLh of companles
provldlng elLher cleanlng/wasLe
managemenL servlces or offlce
auLomaLlon servlce.
A2Z quoLed dlfferenL prlces for lLems
of same speclflcaLlons ln Lhe Lender
packages alloLLed Lo hlm. CC dld noL
quesLlon Lhese lnconslsLencles, nor
dld lL negoLlaLe for lower raLes.
1he performance of A2Z was found
deflclenL and CC sLaLed LhaL a
deducLlon up Lo 8s. 4.33 crore was
belng consldered as also encashmenL
of performance guaranLee.
Undue favour to
A22 Ma|ntenance and
Lng|neer|ng Serv|ces
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
CC declded Lo cenLrallse lLs loglsLlcs work
wlLh a separaLe funcLlonal area. AglllLy
LoglsLlcs was appolnLed as Lhe loglsLlc
servlce provlder ln !uly 2010, afLer a slx
monLh long Lenderlng processlng, aL a cosL
of 8s. 12.3 crore less vlk sponsorshlp of
8s.11 crore. As of March 2011, CC could noL
provlde deLalls of Lhe vlk servlces avalled
from AglllLy LoglsLlcs. Powever, we found
LhaL 20 ouL of 34 luncLlonal Areas of CC
dld noL avall of Lhe cenLrallsed loglsLlc
servlces and made separaLe arrangemenLs
even for warehouslng and dlsLrlbuLlon of
goods e.g. CC engaged 8uharlwala LoglsLlcs
for Lhe openlng and closlng ceremonles aL a
cosL of 8s 0.69 crore. lurLher slnce all
goods procured by Lhe CC dld noL pass
Lhrough Lhe cenLrallsed loglsLlcs secLlon, full
lnformaLlon on asseLs procured by Lhe CC,
Lhelr locaLlon, dlsLrlbuLlon and reLrleval was
noL avallable.
Also, afLer four monLhs of Lhe closure of Lhe
Cames, CC has yeL Lo compleLe physlcal
verlflcaLlon of sLores. SubsLanLlal asseLs are
sLlll lylng ln Lhe Cames vlllage, MuC
SLadlum and CC PeadquarLers. CC sLaLed
LhaL Lhey were awalLlng lnsLrucLlons from
A separaLe luncLlonal Area for procuremenL
was esLabllshed Lo faclllLaLe plannlng for
procuremenL of goods and servlces for Lhe
Cames and procure goods and servlces as
per deflned Llmellnes, locaLlons and
quanLlLles. Powever, Lhls luncLlonal Area
was grossly underuLlllsed and played a very
llmlLed role ln CC procuremenL. 1he
procuremenL manual was prepared only ln
Aprll 2010, and was also noL complled wlLh.
ln mosL cases, Lhough assoclaLed wlLh
Lenderlng, Lhls luncLlonal Area was noL
used Lo make procuremenL for oLher areas.
ln many cases e.g. lmage and Look and
CommunlcaLlon, Lhelr advlce on Lenderlng
was lgnored.
no plan for Lhe reLurn and dlsposal of
surplus maLerlal was formulaLed Llll Lhe
Cames were over. A commlLLee was formed
ln november 2010 for Lhe dlsposal of
asseLs, however, lLs work ls yeL Lo sLarL
(March 2011).
ln cases of procuremenL Lhrough Lhls
luncLlonal Area, we found some
lrregularlLles e.g.:
Souvenlr lLems worLh 8s.3.31 crore were
lylng unuLlllzed as of uecember 2010,
ouL of whlch commemoraLlve medals
consLlLuLed 8s.2.64 crore.
CuL of 200 lapLops purchased ln Aprll
2010, 32 lapLops worLh 8s.0.27 crore
were lylng unuLlllsed.
1S.S Log|st|cs
1S.6 rocurement
1S.4.2 C|ean|ng serv|ces at Non
Compet|t|on Venues
uue Lo deflclenL plannlng, Lhe four non
compeLlLlon venues - lnLernaLlonal
8roadcasLlng CenLre, unlform AccredlLaLlon
CenLre, Maln LoglsLlcs CenLre and Medla
ress CenLre were noL covered ln Lhe nlne
Lender packages, and a separaLe Lenderlng
was conducLed ln !une 2010. A conLracL for
8s.0.98 crore was awarded Lo an lnellglble
vendor (as Lhey dld noL meeL Lhe relevanL
parameLers as glven ln 8l), as no Llme was
avallable by Lhen.
M?AS. We also found LhaL ouL of four prlme
warehouses ln Lhe premlses of l1C, CC,
!Ln and SAl, Lwo were closed ln november
2010 wlLhouL any physlcal verlflcaLlon. As
such posslblllLy of shorLages durlng LranslL
movemenL Lo CC bulldlng and MuC sLadlum
cannoL be ruled ouL.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
1S.7 k|sk Management
1S.7.2 Insurance for CG-2008, une:
lor C?C-2008 une, CC execuLed Lhree
lnsurance pollcles aL a cosL of 8s. 1.30 crore
wlLh 8ellance Ceneral lnsurance and lClCl
Lombard. no records perLalnlng Lo Lhese
pollcles were made avallable for scruLlny.
SLrangely Lhe lnsurance cover for 80 CC
offlclals was Laken up Lo March 2009 (whlle
Lhe Cames Look place ln CcLober 2008). ln
AugusL 2009, CC, on Lhe advlce of M?AS,
declded Lo opL only for publlc secLor
lnsurance companles for lnsurance
coverage.
1S.7.3 Lxecut|on of Insurance o||c|es
ln SepLember 2009, L8 approved execuLlon
of a Comprehenslve Ceneral LlablllLy pollcy
for uS$ 20 mllllon (8s. 100 crore). Powever,
on Lhe lnLervenLlon of Shrl Mlke Pooper ln
CcLober 2009, CC execuLed Lhe sald pollcy
for uS$ 100 mllllon aL a LoLal premlum of 8s.
2.90 crore. Shrl Pooper lnslsLed LhaL CC
should Lake Lhe lnsurance for uS$ 100
mllllon based on Lhe recommendaLlons of
9
CCl's lnsurance consulLanL Marsh . lL was
noLed ln Lhe L8 meeLlng LhaL Lhere was a
confllcL of lnLeresL as Marsh was boLh a
consulLanL Lo CCl and an lnsurance broker
Lo CC and had a vesLed lnLeresL ln
1S.7.1 Insurance 8roker
As per Lhe PosL ClLy ConLracL, Lhe CC was
requlred Lo obLaln adequaLe lnsurance
coverage ln respecL of all rlsks assoclaLed
wlLh Lhe organlzaLlon and sLaglng of Lhe
Cames.
CC Look 13 monLhs Lo selecL lnsurance
brokers:
lncldenLally, Lhe 8ls for appolnLmenL of
lnsurance companles for dlfferenL covers
lncluded an unusual clause LhaL All re-
lnsurance requlremenLs wlll be dlscussed
wlLh Marsh/1rlnlLy before approachlng
relnsurance markeL. All lnsurance
companles have Lo follow guldellnes lald
down by Marsh/1rlnlLy wlLh regard Lo 8e-
lnsurance companles, falllng whlch Lhe bld
wlll sLand cancelled."
lurLher, Lhe 8l also provlded for maxlmum
brokerage permlsslble under l8uA rules.
8oLh Lhese clauses appear Lo have been
deslgned Lo beneflL Lhe lnLeresL of Lhe
broker Marsh/1rlnlLy.
1oble 15.2 . cbtoooloqy of eveots
fot selectloq of btokets
1|me||ne Lvent
LCl lssued
LvaluaLlon commlLLee recommended
re-Lenderlng, as none of Lhe nlne
responses had Lhe deslred proflle
LCl lssued agaln. CrlLerla revlsed
from experlence of flve lnLernaLlonal
evenLs Lo experlence of only Lwo
evenLs.
8l lssued Lo Lhree shorLllsLed flrms
- Marsh lndla, Aon Clobal lnsurance
and !8 8oda lnsurance.
1wo seLs of mlnuLes of Lhe 1echnlcal
LvaluaLlon commlLLee, one where
Marsh lndla was Lhe bldder, and
anoLher where lL was shown along
wlLh parLner 1rlnlLy lnsurance
8roker.
CC slgned an agreemenL wlLh Marsh
lndla/1rlnlLy lnsurance 8rokers
Iune 2007
March 2007
Iu|y 2007
Ianuary
2008
2S March
2008
Iune 2008
9
5btl noopet eveo tbteoteoeJ tbot lf Oc JlJ oot execote
tbe pollcy fot u55100 mlllloo, cCl woolJ Jo so ooJ
cbotqe lt to Oc.
0
e
a
a
c
t

e
t

t
h
e
0
a
m
e
s
0
r
g
a
a
|
s
|
a
g
0
e
m
m
|
t
t
e
e
S
e
c
L
l
o
n

-

C
lncreaslng Lhe pollcy amounL on accounL of
Lhelr brokerage commlsslon. uesplLe L8's
approval for a llmlL of uS$ 100 mllllon (l.e.
8s. 460 crore), CC execuLed Lhe pollcy for an
enhanced llmlL of 8s. 300 crore resulLlng ln
excess paymenL of premlum of 8s. 0.23
crore.
1he managemenL of oLher lnsurance
pollcles and premlums was faulLy on several
counLs:
CC Look lnsurance cover for 23000
volunLeers (as agalnsL Lhe acLual 17667
volunLeers and for a longer perlod Lhan
Lhe volunLeers' engagemenL, resulLlng ln
excess expendlLure of 8s.0.11 crore.
CC execuLed lnsurance pollcles for C88
personnel and equlpmenL durlng Lhe
lnLernaLlonal and naLlonal legs of C88 aL
a premlum of 0.84 lakh, alLhough Lhls
was Lhe responslblllLy of Maxxam, Lhe
C88 consulLanL.
CC Look lnsurance cover for dlrecLors

and offlcers llablllLy Lo proLecL Lhe
offlclals from Lhe declslon Laken ln good
falLh, durlng whlch process, Shrl M
10
!eychandran falsely lnformed Lhe CLC
LhaL Lhe L8 had approved a pollcy for
uS$ 23 mllllon. 1he L8 dld noL dlscuss
Lhls lssue ln Lhe above meeLlng. lurLher,
as recommended by Lhe CLC, Lhe
approval of SlC was also noL Laken. CC
made a paymenL of 8s.1.29 crore ln !une
2010 only on Chalrman's approval.
ln a separaLe response, Shrl kalmadl (ex-
Chalrman, CC) dlspuLed Lhe above
sLaLemenL and lndlcaLed LhaL Lhe L8
members had, ln Lhelr meeLlng on 11
May 2010, suggesLed LhaL CC should
obLaln such ulrecLors & Cfflcers LlablllLy
(u&CL) lnsurance. We do noL agree,
slnce Lhe mlnuLes of Lhe L8 meeLlng of
11 May 2010 dld noL reflecL a
dlscusslon, nor a declslon, on u&CL
lnsurance.
10
loclJeotolly, 5btl IeyocbooJtoo sobmltteJ o clolm fot ks.
5 ctote (ooJet tbe Jltectots ooJ offlcets lloblllty covet)
Jltectly to tbe losotooce compooy oftet bls sospeosloo,
Jetolls ote oot ovolloble lo Oc's tecotJs.

CWG English - Part-1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CWG English - Part-1

Uploaded by

Copyright:

Available Formats

Audit Report on

Games |ann|ng Consu|tancy and Cver|ays

ent|re contract on the same day to Zoom Commun|cat|ons, wh|ch wou|d

uLLlng ln place adequaLely empowered

Deve|opment of sport|ng venues |nvo|ved:

and co-ordlnaLlon, and

C|ty Improvements |nvo|ved:

venues and renovaLlon/ upgradaLlon of

Cther serv|ces |nc|uded:

SporLs and Lechnology arrangemenLs,

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 44

plannlng documenLs and operaLlonal

envlsaged as a revenue neuLral pro[ecL,

ChapLer 3 - AudlL Approach

ueLalls of Lhe audlL processes/

Draft agency-spec|f|c aud|t f|nd|ngs were

granLs of 8s. 318 crore and revenue from

ln May 2003, approval of Lhe rlme MlnlsLer

4.1.2 V|s|t of CGI Lva|uat|on Comm|ss|on

uurlng lLs vlslL Lo uelhl ln AugusL 2003, Lhe

M?AS responded LhaL ln vlew of Lhe

1he CCl LvaluaLlon Commlsslon for CWC-

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) S6

1he PCC was slgned on 13 november 2003

Clven Lhe mulLl-dlmenslonal naLure of Lhe

ln SepLember 2004, Lhe rlme MlnlsLer

1he Apex CommlLLee under Lhe

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 62

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 68

A CoordlnaLlon CommlLLee (whlch

SLadlum CommlLLees had been

4.6 ko|e of LG, De|h| and

1he procedure for ensurlng Lhe

4.6.2 Lmpowered Comm|ttee under the

1he mulLlpllclLy of agencles carrylng ouL

S Mukher[ee Marg Corrldor, and

S.2 Seven ear W|ndow from

CorporaLe hosplLallLy plan,

ln addlLlon Lo Lhe CC and CMS, Lhe PCC

Lven afLer our !uly 2009 SLudy 8eporL,

S.7 |ann|ng for Cther

Wh||e many of the comp|eted pro[ects

lL assumed LhaL Lhe exlsLlng sporLs

6.2.4 Cther reasons for Cost] 8udget

1he mechanlsms ln Lhe Col for approval of

Cases where Lhe expendlLure lnvolves an

6.S Cutstand|ng L|ab|||t|es

Agency Sanct|oned Amount

Arranglng and provldlng

rovldlng venues wlLh faclllLles of

romoLlng a poslLlve lmage of

lannlng and lmplemenLlng Lhe

ConLrlbuLlng Lo Lhe achlevemenL

lannlng and procurlng goods

LsLabllshlng and malnLalnlng

ldenLlfylng Lhe producL range Lo

7.2 Interna| Contro|

lnLernal conLrols are acLlons Laken by

C88 Launch Ceremony, London

Many flles produced Lo us were

7.2.4 I|nanc|a|, taxat|on and

CC underLook Lo bear Laxes on behalf of

1he conLracLlng deflclencles/ lrregularlLles

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 114