The Central Bureau of Investigation has registered a case against the then certain officers of MTNL and other unknown private persons of a Noida- based Private Company dealing in Optical Fibre Transmission U/s 120-B IPC and 13(2) r/w 13(1)(d) of Prevention of Corruption Act 1988 on the allegations that MTNL awarded the work of broadcast network based on IP/MPLS Technology at an exorbitant price of approx. Rs.570.12 crores by manipulating the specification in such a manner as to make them tailor made for the said bidder to the said private company.

Though the broadcasting data transmission requirements for CWG-2010 were very limited, based on optical fiber transmission, for which an initial estimate of approx.Rs.31.43 crores was prepared, the MTNL in their proposal included Broadcast Video Network based on IP/MPLS technology that grossly enhanced the network costing by Rs.380.04 crores (approx.), allegedly with an intention to cause huge pecuniary advantage to the contracting firms. This resulted into huge loss to the Government Exchequer and wrongful gain to the Noida-based private company. The enhancements in the scope of work and engineering of conditions of contract were made by the officials concerned of MTNL in such a manner that sub-contract could be awarded only to the said private limited company .

After the registration of the case, searches have been carried out in various parts of the country including Delhi, Noida, Jaipur and Patna. During searches conducted so far, documents relating to immovable and movable property belonging to accused persons and other incriminating documents have been recovered. Searches are still going on at these places.

CBI Press Release
New Delhi , 08-06-2011

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