CWG Scam: CBI warrant against Gem International promoters
Swiss Timing-Omega is involved in a scam related to timing, scoring and result, or TSR, deal clinched on the eve of the Commonwealth Games.
By Devesh Kumar, ET Bureau | Updated:
NEW DELHI: The Central Bureau of Investigation has issued arrest warrants against AK Madan and PD Arya, promoters of Faridabad-based Gem International, which was outsourced a substantial portion of the contract Swiss Timing-Omega won for the Commonwealth Games.
Swiss Timing-Omega is involved in a scam related to timing, scoring and result, or TSR, deal clinched on the eve of the Commonwealth Games.
The TSR scam, which has already claimed the scalp of Games chief Suresh Kalmadi and his associates Lalit Bhanot and VK Verma, resulted in a net loss of 96 crore to the state exchequer. Kalmadi has been suspended from Congress and is in CBI custody. Bhanot and Verma are in Tihar Central Jail.
Swiss Timing-Omega bagged the contract for installing TSR systems at the various Games venues for 141 crore, while its competitor, MSL-Spain quoted just 46 crores for executing the project.
MSL-Spain had won accolades for putting in place the TSR system at the Guangzhou Asian Games, held immediately after the Commonwealth Games. The Spanish company's bid was, however, rejected by the Commonwealth Games organising committee.
Madan and Arya are on the run now and are believed to have acted as the intermediaries between Kalmadi and the Swiss firm. According to the deal worked out between Swiss Timing-Omega and Gem International, the former fixed a floor-rate for itself. Earning beyond this was to be pocketed by the Faridabad-based firm.
Gem International, according to CBI sources, had been paid Rs 23 crore for non-existent work and claimed another Rs 5-7 crores from the Swiss firm. Madan and his associates are said to have undertaken a trip to Geneva ostensibly for a retina transplant surgery earlier this year. The CBI believes that this trip had essentially been planned to claim the outstanding amount from the Swiss firm.
Madan and Arya have refused to co-operate with the CBI so far, despite several summons being issued on them. Incensed over their non-co-operative attitude, the CBI on Sunday issued arrest warrants against them.
Arya's wife is said to be a senior official belonging to the Indian Customs and Excise Service.
The allegation against Kalmadi and his accomplices in the CWG OC was that they had awarded the contract to the Swiss company in a pre-meditated and calculated manner, brushing aside the claims of MSL-Spain. The latter was, however, "wrongfully eliminated, thereby causing pecuniary benefit to the bidder left in the fray,'' CBI pointed out.
"Investigation has also revealed that members of the tender evaluation committee were coerced and threatened to disqualify other bidders. Investigation has also revealed that Indian representatives of the favoured supplier were in regular contact with the three arrested OC officials (Kalmadi, Bhanot and Verma) much before the award of the tender,'' the CBI spokesperson added.
Swiss Timing-Omega is involved in a scam related to timing, scoring and result, or TSR, deal clinched on the eve of the Commonwealth Games.
The TSR scam, which has already claimed the scalp of Games chief Suresh Kalmadi and his associates Lalit Bhanot and VK Verma, resulted in a net loss of 96 crore to the state exchequer. Kalmadi has been suspended from Congress and is in CBI custody. Bhanot and Verma are in Tihar Central Jail.
Swiss Timing-Omega bagged the contract for installing TSR systems at the various Games venues for 141 crore, while its competitor, MSL-Spain quoted just 46 crores for executing the project.
MSL-Spain had won accolades for putting in place the TSR system at the Guangzhou Asian Games, held immediately after the Commonwealth Games. The Spanish company's bid was, however, rejected by the Commonwealth Games organising committee.
Madan and Arya are on the run now and are believed to have acted as the intermediaries between Kalmadi and the Swiss firm. According to the deal worked out between Swiss Timing-Omega and Gem International, the former fixed a floor-rate for itself. Earning beyond this was to be pocketed by the Faridabad-based firm.
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Gem International, according to CBI sources, had been paid Rs 23 crore for non-existent work and claimed another Rs 5-7 crores from the Swiss firm. Madan and his associates are said to have undertaken a trip to Geneva ostensibly for a retina transplant surgery earlier this year. The CBI believes that this trip had essentially been planned to claim the outstanding amount from the Swiss firm.
Madan and Arya have refused to co-operate with the CBI so far, despite several summons being issued on them. Incensed over their non-co-operative attitude, the CBI on Sunday issued arrest warrants against them.
Arya's wife is said to be a senior official belonging to the Indian Customs and Excise Service.
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The allegation against Kalmadi and his accomplices in the CWG OC was that they had awarded the contract to the Swiss company in a pre-meditated and calculated manner, brushing aside the claims of MSL-Spain. The latter was, however, "wrongfully eliminated, thereby causing pecuniary benefit to the bidder left in the fray,'' CBI pointed out.
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"It is alleged that officials of the OC conspired with representatives of the Swiss firm and the contract for TSR was awarded by wrongfully restricting and eliminating competition from other suppliers in a pre-meditated and planned manner. Investigation has revealed that the committee for shortlisting prospective bidders for TSR was constituted by selecting hand-picked officials,'' CBI spokesperson Dharini Mishra said after Kalmadi's arrest last Monday. "Investigation has also revealed that members of the tender evaluation committee were coerced and threatened to disqualify other bidders. Investigation has also revealed that Indian representatives of the favoured supplier were in regular contact with the three arrested OC officials (Kalmadi, Bhanot and Verma) much before the award of the tender,'' the CBI spokesperson added.
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