Wednesday, January 19, 2011

CBI arrests event manager in CWG overlays scam

The Central Bureau of Investigation (CBI) Tuesday arrested the owner of event management companies Meroform India and GL proceedings, Binu Nanu, for his involvement in the controversy over granting overlays contract for the Common wealth Games.Nanu was produced in a CBI special court in Patiala House and was remanded to four days police custody, CBI sources said. The term overlays means a variety of impermanent fittings, fixtures and equipment required for competition and non-competition venues.

These include marquees and tents; temporary structures for ticket booths, spectator services and security checks; portable cabins, furniture and fixtures. The union cabinet had approved Rs.687 crore for overlays in the Organising Committee (OC) budget for the Oct 3-14, 2010 Common wealth Games. The Organising Committee had primarily proposed a budget of Rs.948 crore for the overlays. But the sports ministry, in consultations with the OC, brought it down to Rs.687 crore.

The expenditure finance committee headed by the finance secretary also recommended a budget of Rs.687 crore. The Comptroller and Auditor General (CAG) report had pointed out that the reduction in cost by OC indicated that the quantities of the overlays were overstated at the time of tendering. It suggested that there was a possibility that undue favours could have been given to confident vendors.

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