Tuesday, Apr 28, 2015

Enforcement Directorate issues showcause notices to Kalmadi, 6 others

Written by Appu Esthose Suresh | New Delhi | Published on:July 25, 2014 1:13 am

The Enforcement Directorate (ED) has issued showcause notices to the former top brass of Commonwealth Games (CWG) organising committee (OC) in a case related to hiring of cars in the Queen’s Baton relay in the UK. According to sources, the Delhi zonal office of the ED has found a Rs 6 crore forex violation by the OC in awarding the contract to AM Films and Cars Ltd.

The ED is planning to file showcause notices against Jarnail Singh (ex-chief executive officer, OC), Suresh Kalmadi (ex-chairman), Lalit Bhanot (ex-secretary general), V K Verma (ex-director general), Sanjay Mahindroo (deputy director general), M Jayachandran (ex-joint director general) and A K Matoo (ex-treasurer).

Interestingly, T S Darbari, the former joint director general who was sacked by the OC in connection with alleged irregularities, is not named by the ED. Darbari was also exempted from the chargesheet filed by the ED in 2012.

“The ED investigation has found the contract to be in contravention of Foreign Exchange Regulations [section 5, 3A, 7D, 10 (5), 10(6)] since the OC gave revised work order to Am Films and Cars Ltd,” a source said.

“A FEMA violation of Rs 6 crore is found by ED. On the money laundering case, the ED will await the outcome of the trial court,” the source futher said.

The genesis of the controversy was in engaging AM Films and Cars Ltd when the contract was originally given to another firm at one-third the price by JMW. The ED findings also mention that the OC violated its own charter for the event and hired luxury vehicles like Mercedes S-class and BMW-7 series, thereby violating the authorisation for hiring only “mid-size” cars for ferrying guests, athletes and other dignitaries, a source said.

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