LONDON: The Indian High Commission has alerted the Union government about investigations launched by UK authorities into cash transfers of Pounds 2,47,469 (approx Rs 1.68 crore) in October 2009 from the Commonwealth Games Organizing Committee (OC) to a UK-based company, AM Films UK Ltd.
The money was transferred in lieu of services obtained from the UK company during the Queen's Baton Relay function in London in October last year. The British Revenue and Customs Department has now written to the Indian High Commission, saying there are discrepancies in the payment of this money by the OC.
The UK government has stated that apart from Pounds 2,47,469, a figure of Pounds 25,000 (Rs 17 lakh) is being transferred every month into the account of UK-based AM Films. A rough estimate reveals that nearly Pounds 4,50,000 (Rs 3.06 crore) has been transferred to AM Films until now.
A visit by TIMES NOW to the premises of AM Films UK Ltd in London showed that the company on location was AM Vehicles Hire Ltd. Further, Ashish Patel, the director, had since resigned from the company on July 14, 2010. The details of the investigations are now being tracked by ED.
Documents with TIMES NOW show that the deal came to light when the OC asked for a VAT refund of Pounds 14,000 in March this year for payments to AM Films. The deal's scrutiny led to the Revenue & Customs Criminal Investigation Team pointing out loopholes in the contract awarded to AM Films.
In a letter dated June 7 to the Indian High Commissioner Nalin Surie, Meera Rajah of Revenue & Customs said there was no written contract between the CWG and the UK-based AM Films, no tendering procedure was followed, and no paperwork regarding the contract was done.
A release issued by OC secretary-general Lalit K Bhanot stated, "The OC firmly refutes allegations of financial irregularities with relation to the launch of the Queen's Baton Relay...we have followed due diligence in making all payments, getting the clearances from the Executive Board and from Reserve Bank of India for incurring the expenditure in foreign currency. All remittances happened against this clearance."
Chief minister Sheila Dikshit tersely told TV channels, "We will look into the matter."
The discrepancies show that while OC states that it transferred Pounds 2,47,469 to account no. 22701021 (Sort Code 151000) with Royal Bank of Scotland for video equipment purchased, AM Films has claimed that it provided services of "car hire, make-shift toilets, barriers and electricity". The differing versions and investigations of lack of procedures, raised the alarm. British officials also met Indian High Commission officials on June 14.
India's Deputy High Commissioner in London R N Prasad's letter (dated June 14), a copy of which is with TIMES NOW, to the sports ministry and the MEA seeks advice on the reply to be given to the UK government. This letter and its details are now with ED, which launched investigations into the deal on July 21.
The question raised by UK authorities is whether AM Films, which is supposed to have supplied video equipment, but which supplied cars for rentals as per its own admission, is now providing consultancy for costume designing for which it is receiving Pounds 25,000 per month.
An internal note on June 14 by Rahul Srivastava, first secretary in the high commission in London, states that AM Films is a one-man company owned by Ashish Patel, aka Ash Patel, who has been introduced to T S Darbari and Sanjay Mahendroo of the OC.
Darbari, director, corporate strategy in the Organizing Committee (OC), was recently suspended after a Customs complaint in India but was reinstated after the intervention of OC chairman Suresh Kalmadi through a letter written to Union sports minister M S Gill on April 29, 2010. With the CVC spotlight on CWG deals, the latest disclosures are likely to add to the discomfiture of the CWG brass.
