CWG SCAM

Introduction

The Comptroller and Auditor General (CAG) have found irregularities in procurement of
medical equipment for the Games, causing loss of crores of rupees to the government
exchequer. The initial total budget estimated by the Indian Olympic Association in
2003 for hosting the Games was Rs 1,620 crore. In 2010, however, the official total
budget escalated to an estimated Rs 11,500 crore, a figure which excluded non-
sports-related infrastructure development. Just the cost of construction of five
Games venues by Central Public Works Department had escalated by over Rs 1,110
crore than the original sanctioned amount. 

 EMAAR MGF contract with GoI/DDA for CWG village EMAAR MGF
contract with GoI/DDA for CWG village Net benefit to EMAAR MGF
Rs.2,117 crores
  In one such case, 72 golf carts were hired for  4.23 lakh (US$9,179.1) each,
when they could have been purchased for  1.84 lakh (US$3,992.8) each.
 It took just Rs 85 crore for the modernisation of Ferozeshah Kotla stadium
whereas it cost Rs 961 crore for Jawaharlal Nehru stadium cost.
 Reports claim over 4.50 lakh pounds transferred through a British bank to the
company
 Uk based firm Am films used as a conduit for siphoning off 250000 pounds for
cwg

The CBI has registered four FIRs naming some of the close aides of Kalmadi for
alleged criminal conspiracy and financial irregularities in executing certain
contracts. It has also questioned Kalmadi in connection with its cases.

List of Commonwealth Games officials under the scanner:

 TS Darbari: Expelled joint director general, CWG Organising Committee. He
has been arrested for involvement in AM Cars scam.
 Sanjay Mohindroo: Expelled joint director general, CWG Organising
Committee. He has been arrested for involvement in AM Cars scam
 M Jeyachandran: Joint Treasurer, Organising Committee. Arrested for
involvement in AM Cars scam
 Sangeeta Welinkar: Personal friend and key aide of Suresh Kalmadi. He has
been raided by the CBI.
 VK Verma: Joint director general, CWG Organising Committee. He has been
raided by CBI for alleged involvement in timekeeping equipment scam.
  Lalit Bhanot: Secretary General, CWG Organising Committee. He has been
raided by CBI for alleged involvement in timekeeping equipment scam.

IMPACT OF CWG SCAM ON INDIA

Socio-economic impact

 Urban change
 Child labour
 Labour laws violations
 Sex slavery and prostitution boom

MAIN REASONS WHICH LEAD TO SCAM

 Vigilance-related irregularities and Over-Invoicing

 Preparation delays
 Mass volunteer walkout
 Poor ticket sales and attendance

Infrastructure issues
 Transport infrastructure
 Problems with functionality of equipment and infrastructure during
events
 Infrastructural compromise