Probe FEMA violations in CWG projects: CVC to ED

The Central Vigilance Commission (CVC), probing alleged financial bungling in the Commonwealth Games-related projects, has referred certain cases to the Enforcement Directorate (ED) to check whether there was violation of foreign exchange laws.

Official sources said that projects like construction of Commonwealth Games Village near Akshardham temple and flyovers, hiring and procurement of medical and fitness equipment and conduct of outdoor publicity campaign by the Organising Committee may come under the ED scanner.

They said a decision to hand over cases to ED for a "logical conclusion" was taken recently during a meeting Central Vigilance Commissioner P J Thomas had with senior officials.

Sources said the Chief Technical Examination (CTE) wing of the Commission, which has scrutinised all the documents related to bidding and grant of tender worth crore of rupees to various firms, has found substantive evidence that these private companies might have routed money through illegal means and bypassing laws.

They said the Chief Vigilance Officers (CVOs) of government agencies like Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC), Public Works Department (PWD) and Delhi Development Authority (DDA) have been specifically directed to pursue all matters related to violation of Foreign Exchange Management Act (FEMA) with the ED.

A CVC team has seized documents from the Games OC office here to avoid any tampering of evidence.

"There has been some cases where the Commission has noticed alleged violations of forex laws. We will be giving those cases to ED for interrogation and report,"a CVC official said requesting anonymity.

Sources in the anti-corruption watchdog said that the officials working in its "special cell" - exclusively made to deal with cases of Games corruption - will meet ED officials early next month in this regard.

The sources said Sandeep Wadwah of Comfort Net-Nussli India consortium, which has bagged contract worth Rs 150 crore for overlays work, was questioned by ED officials on November 24, in connection with the alleged irregularities in preparation for the sporting extravaganza held in the national capital last month.

They said the ED is likely to soon issue summons to the firms that undertook the overlays work for the event. The overlays contracts estimated to be worth Rs 800 crore, they said.

The ED sources said that it was also looking at the possibility of registering a case under Prevention of Money Laundering Act (PMLA) with regard to the alleged CWG scam.

The CBI is also likely to question Commonwealth Games Organising Committee Chairman Suresh Kalmadi soon in connection with its probe into the alleged corruption during the Queen's Baton Relay held in London last year.