CWG FIR may bring Sheila under probe : AAP Govt To Pursue Street Lights Scam

New Delhi: In a development that puts the role of former Delhi chief minister Sheila Dikshit in alleged Commonwealth Games scams under the purview of investigation, the anti-corruption bureau has filed an FIR in a case of “fraud in the purchase of imported luminaries that caused a loss of Rs 31 crore to the exchequer”.

The Delhi cabinet met on Thursday and decided to probe the alleged street lights scam. The ACB promptly moved to file an FIR on the basis of irregularities cited by the Comptroller & Auditor General’s report in 2011. The case is learned to have been filed under section 420 (cheating), 120-B (criminal conspiracy) and section 13 (1 c and d) of Prevention Of Corruption Act.

‘APPARENT LOSS OF 31CR’
AAP GOVT ALLEGES

• Apparent loss of 31.07cr to Delhi govt, caused by PWD, MCD and NDMC, as items were imported. Indigenous items not inferior to imported ones
• When the real cost of the imported item is considered as base price, loss much more

Scheme of upgrades and use of imported items at exorbitant rates apparently a conspiracy and exercise to benefit certain companies or individuals at taxpayer’s cost ‘Clear nexus between Sheila team, vendors’ W hile the FIR has not named former CM Sheila Dikshit, sources told TOI that it includes a line, “under the chairmanship of former CM and her ministers”, making it evident that Dikshit figures in the investigation. Sources close to Dikshit said she did not want to comment on the matter at this stage and that she has not been named in the FIR.

Those who have been named are those who received “pecuniary benefits”. They include the contractors who supplied street lights during the Games, sources said.

The AAP government’s decision followed a scrutiny of CAG’s performance audit report on the Commonwealth Games, the Shunglu Committee report, PWD’s reply to the Shunglu Committee and CAG reports, and available records related to modernization of the Delhi street lighting system.

The project for modernization of Delhi street lights was conceived by the state government in June 2006, with plans to implement it across the capital within two years. Detailed lighting standards were prepared in November 2006 to be followed by all the departments concerned, namely PWD, NDMC and MCD. The project was executed on around 800km of Delhi roads at a tendered cost of Rs 286 crore. The lighting standard provided only the technical parameters of performance of lamps and luminaries. PWD, while adopting the same specifications, stipulated the use of a mix of imported and indigenous luminaries for different categories of roads.

“In the process, it appears that there was clear collusion with vendors by some officials and the then chief minister/ ministers to cause huge financial loss to the government and wrongful gain to vendors/contractors and others,” said a statement issued by CM Arvind Kejriwal's office on Thursday.

The statement added that in July 2007, SpaceAge Switch Gears had submitted an expression of interest as a “manufacturer of luminaries of international repute, and of poles in India”. The board of assessors (BoA) disqualified it in November 2007. On being disqualified, the firm appealed in November 2007 to then CM Sheila Dikshit for inclusion as a tenderer for the work. The vendor’s plea was directly forwarded to the engineer-in-chief. Subsequently, the firm was re-assessed by the BoA and this time made the cut.

According to the CM’s statement, if the BoA had been fair, it would have given a similar opportunity to the other two rejected firms. Records, however, do not show any such attempt.

“Unusual interest was displayed by the hon'ble chief minister in this project. This is demonstrated by the fact that meetings were held at her residence, imported luminaries were approved by her and competition was restricted to only three parties at her instructions...” the Shunglu committee report stated.

SHEILA CONNECTION

• While the FIR has not named former CM Sheila Dikshit, sources say it contains a line “under the chairmanship of former CM and her ministers”, making it evident that Dikshit figures in the investigation.
• Sources close to Dikshit said she would not like to comment at this stage

COURTESY:
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CWG Scam: ED quizzes Kalmadi on Rs 71 lakh paid to Shilpa

Congress MP and former CWG chairman Suresh Kalmadi was questioned by the Enforcement Directorate last Wednesday over payment of Rs 71.73 lakh to actress Shilpa Shetty in 2008 during the CWG Youth Games in Pune.

Shilpa Shetty reportedly performed during the closing ceremony of CWG Youth Games in Pune for which the money was allegedly paid by a private firm. According to ED, the payment of Rs 71.73 lakh were made by Gem International.

The firm and its owners P D Arya and A K Madan were chargesheeted by the CBI in May 2011, along with Kalmadi, in connection with Timing Scoring Result contract to Swiss Timings firm Omega. The ED suspects the money paid by Gem was given as an favour to Kalmadi.

The owners of Gem International could not be contacted. Shilpa Shetty, too, did not respond to the The Indian Express query. When contacted, Kalmadi said that he was summoned by ED. However sources close to him said, "The payments to the actress were made by Organising Committee."
Courtesy:
Rahul Tripathi : New Delhi, Mon Apr 22 2013, 09:10 hrs
http://www.indianexpress.com/news/ed-quizzes-kalmadi-on-rs-71-lakh-paid-to-shilpa/1105740/

CWG SCAM: Rs 71.73 lakh paid for Shilpa Shetty’s performance to ‘fulfill wish of Kalmadi’

NEW DELHI: A Delhi court dealing with a CWG related corruption case today said two of the accused had paid Rs 71.73 lakh for cinestar Shilpa Shetty's performance in the closing ceremony of 2008 CWG Youth Games at Pune 'merely to fulfill the last moment wish' of Suresh Kalmadi.

The court, which put sacked CWG Organising Committee chief Kalmadi and others on trial for the offences under various sections of the IPC and the Prevention of Corruption Act, observed that promoters of Faridabad-based Gem International, P D Arya and A K Madan, paid Rs 71.73 lakh to M/s Whiz Craft International Entertainment Pvt Ltd for Shetty's performance.

According to court sources, Arya and Madan, who were representing Swiss Timing, which was "illegally" awarded the contract to install Timing, Scoring and Results (TSR) system for the 2010 CWG at inflated rates, had paid the money which was "arranged beyond the scope of work".

Sources said the court, in its order, has noted that both the accused were associated with the CWG Youth Games 2008 and had paid Rs 71,73,950 at Kalmadi's instance through cheque on October 30, 2008 to Whiz Craft International Entertainment Pvt Ltd for Shetty's performance.

Besides Kalmadi, Special CBI Judge Ravinder Kaur also framed charges against OC Secretary General Lalit Bhanot, Arya, Madan and others for criminal conspiracy, forgery, cheating and other offences entailing life imprisonment as maximum punishment.

The accused were chargesheeted by the CBI for "illegally" awarding a contract to install TSR system for the 2010 Games to Swiss Timing at inflated rates causing a loss of over Rs 90 crore to the exchequer.

The court had on December 21, 2012 passed the order on framing of charges under various provisions of the IPC and the PC Act against Kalmadi and other accused in the case.
Courtesy:
PTI | Feb 4, 2013, 09.22 PM IST
http://timesofindia.indiatimes.com/india/Rs-71-73-lakh-paid-for-Shilpa-Shettys-performance-to-fulfill-wish-of-Kalmadi/articleshow/18337533.cms

CWG Scam : Kalmadi to be tried in graft case from Jan 10

New Delhi: Former CWG organizing committee chief Suresh Kalmadi will face trial before a Delhi court for allegedly abusing his office and causing a loss of over Rs 90 crore to the exchequer in a Games-related graft case. On Friday, the court ordered framing of cheating and conspiracy charges against him.

Special CBI judge Talwant Singh fixed January 10 for formal framing of charges against Kalmadi and 10 others. Besides the politician, former OC secretary-general Lalit Bhanot and nine others have been charged with offences of forgery under the Indian Penal Code and criminal misconduct by public servants under the Prevention of Corruption Act.

The case relates to illegally awarding a contract to Swiss Timing Omega, causing a huge loss to the exchequer.

‘Kalmadi chose Swiss Timing even before the bid’
New Delhi: A Delhi court hearing the CWG scam case on Friday said “prima facie” charges of cheating, forgery, criminal conspiracy and for offences under the provisions of the Prevention of Corruption Act are made out against eight accused persons, including Suresh Kalmadi, and three companies. “Charges under section 120B (criminal conspiracy), 201 (destruction of evidence), 420 (cheating), 467, 468, 471 (relating to forgery), 506 (criminal intimidation) of the IPC and section 13(1)(d) read with section 13(2) (criminal misconduct by public servants) of the PC Act are ordered to be framed against all the accused,” the court said.

Kalmadi and the others have been chargesheeted by the CBI for “illegally” awarding a contract to install Timing, Scoring and Results (TSR) system for the 2010 CWG to Swiss Timing at inflated rates. Among the accused are OC director general V K Verma, director general (procurement) Surjit Lal, joint director general (sports) A S V Prasad and treasurer M Jeychandran.

Promoters of two construction companies—P D Arya and A K Madan of Faridabad-based Gem International and A K Reddy of Hyderabad-based AKR Constructions—are also accused in the case along with Swiss Timing Omega.

The CBI had alleged that Kalmadi and the others rejected Spanish firm MSL’s much lower bid of Rs 62 crore and awarded the contract to Swiss Timing Omega, causing a Rs 90 crore loss. During the arguments on charges, the CBI had contended that Kalmadi and the others had decided to award the contract to Swiss Timing even before the firm bid for it. It added that for TSR installation, two bids had been received—one from Swiss Timing and the other from MSL Spain—and the same were opened on November 4, 2009, but Kalmadi and Verma had announced in a meeting on October 12, 2009, itself that the contract would be given to Swiss Timing.
Courtesy:
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CWG scam: Govt slaps 505cr recovery notices

New Delhi: Many private firms and government departments have been slapped with notices for recovery of over Rs 500 crore tax allegedly evaded by them while executing Commonwealth Games-related projects here.

Official sources said recovery notices for Rs 505 crore towards value-added tax (VAT) have been issued by the central government revenue department and trade and taxes authorities of the Delhi government. The demand was raised after a multi-jurisdiction investigation team working under the Central Vigilance Commission (CVC) detected Rs 1,000 crore tax evasion by the private companies and government departments.

Following the detection of huge tax evasion, the tax departments of both Delhi and central governments have also effected recovery of Rs 94.71 crore from private firms and government bodies involved in the CWG-related works, the sources said.

The CVC team, which went into the alleged irregularities in Commonwealth Games-related civic and construction projects, has found tax evasion of Rs 1,014.6 crore.

Sources said show cause notices have been issued to the firms and government departments for payment of Rs 702 crore of VAT on work contracts (TDS), Rs 228.1 crore of service tax and Rs 84.5 crore of workers welfare.

“The scrutiny of works or contracts related to the CWG by the CVC revealed instances of non-payment or detection of statutory taxes or cess etc. by some private companies as well as by government departments or organization. The team is still working and efforts were on to recover the money,” a CVC official said.

Vigilance commissioner R Srikumar said in a recent interview that Rs 1,000 crore evasion was detected with the help of a multi-jurisdiction investigation platform, comprising officers from tax and other authorities, formed by CVC to look into the CWG scam. AGENCIES

Courtesy:
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