CBI registered a case against six Senior Officers of Organizing Committee, CWG-2010 and two private companies for extending undue favour to a private company appointed as official Master Licensee for Merchandising and On-line & Retail Concessionaire for Commonwealth Games, 2010 against a minimum royalty amount of Rs. 7.05 crore.
It is alleged that the then Director General, the then JDG (Finance), the then DDG (Legal), the then DDG (Procurement), the then ADG (F&A) & the then ADG (Image & Look), all of Organizing Committee (OC) CWG-2010 entered into a criminal conspiracy with Director of a private company and Chairman of a private company and others. The said OC Officers, by abusing their official positions, extended undue favour to the private company in appointing it as official Master License for Merchandising and On-line & Retail Concessionaire for CWG-2010 for sportswear, casual wear, kids wears etc. against a minimum royalty amount of Rs. 7.05 crore.
It is further alleged that after scrapping of the earlier bid on flimsy grounds, the Evaluation Committee of the OC CWG-2010, dishonestly considered the private company on the basis of the goodwill of its parent Company, and on negotiations, the said private company submitted an offer of Rs. 5.20 crore for acquiring all the rights of Master Licensee for Merchandising. Thereafter the private company submitted two cheques amounting to Rs. 3.525 crore but the same were dishonoured by the bank and as such the OC did not receive any amount from the private company.
Thus, it is alleged that the accused private company actually used the CWG brand properties and earned a huge profit, but did not pay anything to the OC, and the accused public servants caused huge pecuniary advantage to Director of the private company and corresponding wrongful loss to the Govt. Exchequer.
Searches are being conducted at 10 places in Delhi, Gurgaon, Panchkula, Chandigarh & Mumbai.
CBI Press Release
New Delhi , 06-05-2011