1. Legal Aspects Of Business
End Term Report
Submitted by
Section 19B, Group-5
Group Members
S. No. Name Roll No. S. No. Name Roll No.
1 Shelly Jain 191111 6 Khem Singh 191090
2 Rachit Jain 191105 7 Ankita Sehjpal 191076
3 Gaurav Gulecha 191085 8 Kulvir Singh Gill 191092
4 Tanya Malik 191119 9 Abhijeet Sharma 191062
5 Vivek Mandowara 191121 10 Pankaj Kakkar 191102
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2. Table of Contents
THE PREVENTION OF CORRUPTION ACT, 1988 ....................................................................................... 7
Introduction ........................................................................................................................................ 7
Genesis ................................................................................................................................................ 7
The Prevention Of Corruption Act, 1988 ............................................................................................ 7
Sec 2: Definations............................................................................................................................ 7
Who Is A Public Servant? ................................................................................................................ 8
Sec 3: Power to Appoint Special Judges.......................................................................................... 9
Sec 4: Cases Triable By Special Judges .......................................................................................... 10
Sec 5: Power & Function of Special Judges ................................................................................... 10
Sec 6: Power to Try Summarily ..................................................................................................... 11
Offences and Penalties (SECTION 7 – 16) ..................................................................................... 12
Investigation (SECTIONS 17 – 31).................................................................................................. 17
Conclusion ......................................................................................................................................... 19
COMMON WEALTH GAMES SCAM ....................................................................................................... 20
CWG Background .............................................................................................................................. 21
CWG XIX New Delhi........................................................................................................................... 21
How Delhi Got It - Bidding............................................................................................................. 22
Organizing Committee .................................................................................................................. 22
Key Stakeholders ........................................................................................................................... 24
Objectives of OC............................................................................................................................ 24
Vision, Mission & Values ............................................................................................................... 25
Costs .................................................................................................................................................. 26
Timeline of CWG ............................................................................................................................... 26
CWG Scam Irregularity ...................................................................................................................... 32
Labor Law Violations ..................................................................................................................... 34
CAG Report........................................................................................................................................ 35
Legal Cases against CWG Committee ............................................................................................... 36
Parties Involved................................................................................................................................. 38
Politicians Involved ....................................................................................................................... 38
Bureaucrats Involved .................................................................................................................... 38
Corporations Involved ................................................................................................................... 38
Businessmen Involved................................................................................................................... 39
Whistleblowers/ Law Enforcers .................................................................................................... 39
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3. Scams ................................................................................................................................................ 39
Time Scoring Results System......................................................................................................... 39
Queens Baton Relay ...................................................................................................................... 39
Broadcast Network ....................................................................................................................... 40
Recruitment to Organising Committee ......................................................................................... 40
CNN-IBN NDTV Hindustan Times ...................................................................................................... 41
Response to Scam ............................................................................................................................. 41
CWG Impact ...................................................................................................................................... 42
Socio Economic Impact ................................................................................................................. 43
Organizational Failure ................................................................................................................... 45
Racism Allegation .......................................................................................................................... 47
Infrastructure Issue ....................................................................................................................... 48
Vandalism in games village by Athletes ........................................................................................ 49
Infrastructural compromise ............................................................................................... 50
Terror threats ...................................................................................................................... 51
Fear of dengue outbreak ........................................................................................................... 52
Illness ........................................................................................................................................... 52
Sporting Controversy ........................................................................................................................ 53
Doping ........................................................................................................................................... 53
Archery .......................................................................................................................................... 53
Boxing............................................................................................................................................ 54
Cycling ........................................................................................................................................... 54
Swimming...................................................................................................................................... 54
Wrestling ....................................................................................................................................... 55
Kalmadi: A Culprit or Victim? ............................................................................................................ 55
Effect on Brand Image of India ......................................................................................................... 58
CAG Audit Report Key Points ............................................................................................................ 59
Suggestions & Recommendations .................................................................................................... 60
Conclusion ......................................................................................................................................... 61
2G SCAM ............................................................................................................................................... 62
2G Timeline ....................................................................................................................................... 62
Oct 29, 2010: SC pulls up CBI for its tardy progress in the investigations into the scam ................. 74
Spectrum and Its Relation With Mobile Phone Services ................................................................ 118
2G And 3G Spectrum....................................................................................................................... 118
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4. How the Telecom Operation Is Administered ................................................................................ 119
FCFS Policy ...................................................................................................................................... 119
Understanding 2G Spectrum Scam ................................................................................................. 119
Role of the Former Telecom Minister A Raja In The Scam ............................................................. 120
Senior Officers Involved In This Scam ............................................................................................. 122
Relation Between The 2G Spectrum Scam And The Radia Tapes ................................................... 122
Role Of The Finance Minister In This Scam ..................................................................................... 122
Who Estimated the Loss of Rs 1, 76,000 Crore ............................................................................... 122
Bodies Which Brought Out This Scam in The Public Domain.......................................................... 123
Role of The Investigative Agencies CBI, ED In This Scam ................................................................ 123
What Supreme Court Said About This Scam ................................................................................... 123
Action Taken By Government Taken Till Now ................................................................................ 124
What Did the Government Do To Cover Up This Scam .................................................................. 124
Arrests Made In This Scam .............................................................................................................. 124
Companies Being Investigated ........................................................................................................ 125
Changes in the Telecommunications Sector In India ...................................................................... 125
Gaps in Policy Implementation ....................................................................................................... 125
Telecom Commission Was Not Consulted .................................................................................. 126
Views and Concerns Of Ministry Of Finance Overruled.............................................................. 126
Advice of Ministry Of Law And Justice Were Ignored ................................................................. 127
Hon'ble Prime Minister's Suggestions Were Not Followed ........................................................ 127
Arbitrary Changes By Dot In The Cut-Off Date. .......................................................................... 128
FCFS Policy Was Not Followed .................................................................................................... 128
Issue of License to Ineligible Applicants ......................................................................................... 129
Growth In Telecom Sector .............................................................................................................. 130
Overview of Policies ........................................................................................................................ 130
Methodology for Entry And Fee Structure In Various Policy Regimes ........................................... 132
Role of Telecom Regulatory Authority Of India (TRAI) ................................................................... 134
Organizational Arrangement .......................................................................................................... 135
Issue of Licenses.............................................................................................................................. 135
Spectrum Allocation........................................................................................................................ 136
Gaps in Implementation Of UAS Regime ........................................................................................ 140
Issue of Price Discovery Of Spectrum Was Over Looked ................................................................ 145
Issue of UAS Licence to Ineligible Applicants .................................................................................. 148
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5. Misrepresentation of Facts By The Nine Real Estate Companies ............................................... 150
False and Fictitious Claims Of Higher Paid Up Capital By 13 Companies.................................... 151
Access to Dual Technology.......................................................................................................... 152
Undue Benefits to Reliance Communications Limited ............................................................... 152
Violation of 2003 Cabinet Decision to Allow Additional Spectrum at 2001 Prices ..................... 154
Undue Advantage to Swan Telecom Pvt. Ltd in The Allocation Of Spectrum ............................ 154
Value of Spectrum Allocated Beyond the Contracted Quantity ................................................. 155
Non Fulfillment of the Roll out Obligations by the New Telecom Licensees .............................. 155
Financial Impact .............................................................................................................................. 156
Under Pricing Of 2G and Consequent Loss ................................................................................. 156
Conclusions ..................................................................................................................................... 158
RIGHT TO INFORMATION ACT, 2005................................................................................................... 159
Introduction .................................................................................................................................... 159
Freedom of Information Act, 2002 ................................................................................................. 159
State Level Laws .............................................................................................................................. 160
Scope ............................................................................................................................................... 160
Private Bodies ................................................................................................................................. 160
Right to Information ....................................................................................................................... 161
Process ........................................................................................................................................ 161
Partial Disclosure ........................................................................................................................ 162
Exclusions .................................................................................................................................... 162
Information Exclusions................................................................................................................ 163
Role of Government........................................................................................................................ 164
Effects.......................................................................................................................................... 164
CASE STUDY: CBSE vs. ADITYA BANDOPADHYAY & OTHERS .............................................................. 166
Case Notes: ..................................................................................................................................... 167
The Case .......................................................................................................................................... 170
Aditya Bandhopadhyay’s Petition ................................................................................................... 170
CBSE’s Defense................................................................................................................................ 172
Evaluation Method Adopted By CBSE ............................................................................................. 173
Questions to Be Considered ........................................................................................................... 176
Relevant Legal Provisions................................................................................................................ 177
Exemption from Disclosure from Information (Section 8).......................................................... 178
Answers to the Questions ............................................................................................................... 182
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6. Answer To Q1. ............................................................................................................................. 182
Answer To Q2. ............................................................................................................................. 185
Answer To Q3. ............................................................................................................................. 186
Answer To Q4. ............................................................................................................................. 191
Conclusion - Judgment .................................................................................................................... 197
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7. THE PREVENTION OF CORRUPTION ACT, 1988
Introduction
"If we cannot make India corruption-free, then the vision of making the nation
develop by 2020 would remain as a dream."
- Dr. A.P.J.Abdul Kalam
Corruption is considered to be one of the greatest impediments on the way towards
progress for developing country like India. The economic, social and cultural
structure of our country is very strong; however, due to the menace called-
Corruption, it has been adversely affected and has become defenceless against the
forces of anti-social elements.
According to Shri N.Vittal, Former Chief Vigilance Commissioner, the first stage in
the dynamics of the rule of law is the framing of effective rules and laws, which are
equipped to hinder the ever-rising escalation of the corruption graph. It is in this
context that the Prevention of Corruption Act, 1988 becomes highly significant.
Genesis
The Prevention of Corruption Act, 1988 (henceforth referred to as PCA) came into
force on 9th September, 1988. it incorporated the Prevention of Corruption Act,
1947, the Criminal Law Amendment Act, 1952, and sec. 161 to 165-A of the Indian
Penal Code with modifications, enlarged the scope of the definition of the expression
'Public Servant' and amended the Criminal Law Amendment Ordinanc,k1944. The
PCA, 1988l, thereby widened the coverage, strengthened the provisions and made
them more effective.
The Prevention Of Corruption Act, 1988
Sec 2: Definations
The most important definitions are that of:
- Public duty
- Public servant
Public Duty: It means a duty that is dine for the benefit of the State, the public or the
community at a large. In this context, State would mean:
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8. a) A corporation established by or under a Central, Provincial or State Act.
b) An authority or a body owned controlled or aided by the Government Company as
defined in Sec. 617 of the Companies Act, 1956.
Public Servant: It is unique term in Anti-corruption law, being the deciding factor at
the threshold, of one's liability, depending on his being public servant. The term
'Public Servant' was not defined under the PCA, 1947 and the Act adopted the
definition of the term under sec. 21 of the Indian Penal Code. The PCA of 1988
provides a wider definition in the Act itself under clause (c) of sec. 2. The following
are the salient aspects of the new definition:
a) Under clause (c) of Sec.2 of the PC, the emphasis is on public duty and not on the
Authority remunerating.
b) The definition is enlarged so as to include the office-bearers of the registered co-
operative societies receiving any financial aid from the Government, or from a
Government corporation or company, the employees of universities, public service
commissions and banks etc.
Who Is A Public Servant?
a) Any person who is paid by the government or local authority or remunerated by
way of fees or commission for the performance of or is in the service of a corporation
established by or under a Central, Provincial or State Act, or an authority or body
owned or controlled or aided by the Government company as defined in the
Companies Act, 1956.
b) Any Judge or any person authorized by a court of justice to perform any duty, in
connection with the administration of justice or any arbitrator to whom any cause or
matter has been referred for decision or report by a court of justice or report by a
court of justice or by a competent public authority.
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9. c) Any person who holds an office result to which he is empowered to prepare,
publish maintain or revise an electoral roll or to conduct an election or part of an
election, or is authorized or required to perform any public duty.
d) Any person who is the president, secretary or other office bearer of a registered
co-operative society engaged in agriculture, industry, trade or banking, receiving or
having received any financial aid from the Central or State Government or any
authority or body owned, controlled or aided by Government or Government
company as defined in Sec. 617 of the Companies Act, 1956.
e) Any person who is a chairman, member or employee of any service commission
or Board or a member of any selection committee appointed by such Commission or
Board for the conduct of any examination or making any selection on their behalf.
f) Any person who is the Vice-Chancellor or member of any governing body,
professor, reader or lecturer of any University and any person whose services have
been availed of by a University.
g) An office-bearer or an employee of an educational, scientific, social, cultural or
other institution receiving or having received any financial assistance from the
Central or State government or local or other public authority.
Explanation 1 states that it is immaterial whether the person falling within the
periphery of the above clauses is appointed by Government or not.
Explanation 2 states that a person who is actually holding the position of the situation
of public servant irrespective of the fact that he might not have th3e right to hold that
situation shall be deemed to be 'public servant'.
Sec 3: Power to Appoint Special Judges
The Central and the State Government is empowered to appoint Special Judges by
placing a Notification in the Official Gazette, to try the following offences:
- Any offence punishable under this Act.
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10. - Any conspiracy to commit or any attempt to commit or any abetment of any of the
offences specified under the Act.
The qualification for the Special Judge is that he should be or should have been a
Session Judge or an Additional Session Judge or Assistant Session Judge under the
Code of Criminal Procedure, 1973
Sec 4: Cases Triable By Special Judges
Every offence mentioned in Section 3(1) shall be tried by the Special Judge for the
area within which it was committed. When trying any case, a Special Judge may also
try any offence other than what is specified in S. 3, which the accused may be, under
Cr.P.C. be charged at the same trial. The Special Judge has to hold the trial of an
offence on day-to-day basis. However, while complying with foretasted, it is to be
seen that the Cr.P.C. is not bifurcated.
Sec 5: Power & Function of Special Judges
The following are the powers of the Special Judge:
He may take cognizance of the offences without the accused being commissioned to
him for trial. In trying the accused persons, shall follow the procedure prescribed by
the Cr.P.C. for the trial of warrant cases by Magistrate, he may with a view to obtain
the evidence of any person supposed to have been directly or indirectly concerned in
or privy to an offence, tender pardon to such person provided that he would make full
and true disclosure of the whole circumstances within his knowledge or in respect to
any person related to the offence.
Except as for S. 2(1), the provisions of Cr.P.C. shall apply to the proceedings before
a Special Judge. Hence, the court of the Special Judge shall be deemed to be a
Court of Session and the person conducting a prosecution before a Special Judge
shall be deemed to be a public prosecutor.
The provisions of sections 326 and 475 of the Cr.P.C. shall apply to the proceedings
before a Special Judge and for purpose of the said provisions, a Special Judge shall
be deemed to be a magistrate.
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11. A Special Judge may pass a sentence authorized by law for the punishment of the
offence of which a person is convicted. A Special Judge, while trying any offence
punishable under the Act, shall exercise all powers and functions exercised by a
District Judge under the Criminal Law Amendment Ordinance, 1944.
Sec 6: Power to Try Summarily
Where a Special Judge tries any offence specified in Sec. 3(1), alleged to have been
committed by a public servant in relation to the contravention of any special order
referred to in Sec.12-A(1) of the Essential Commodities Act, 1955 or all orders
referred to in sub-section (2)(a) of that section then the special judge shall try the
offence in a summarily way and the provisions of s. 262 to 265 (both inclusive) of the
said code shall as far as may be apply to such trial. Provided that in the case of any
conviction in a summary trial under this section this shall be lawful for the Special
Judge to pass a sentence of imprisonment for a term not exceeding one year.
However, when at the commencement of or in the course of a summary trial it
appears to the Special Judge that the nature of the case is such that a sentence of
imprisonment for a term exceeding one year may have to be passed or it is
undesirable to try the case summarily, the Special judge shall record all order to that
effect and thereafter recall any witnesses who may have been examined and
proceed to hear and re-hear the case in accordance with the procedure prescribed
by the said code for the trial of warrant cases by Magistrates. Moreover, there shall
be no appeal by a convicted person in any case tried summarily under this section in
which the Special Judge passes a sentence of imprisonment not exceeding one
month and of fine not exceeding Rs. 2000.
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12. Offences and Penalties (SECTION 7 – 16)
Sec 7: Public servant taking gratification other than legal remuneration in respect of an
official act
Whoever, being, or expecting to be a public servant, accepts or obtains or agrees to
accept or attempts to obtain from any person, for himself or for any other person, any
gratification whatever, other than legal remuneration, as a motive or reward for doing
or forbearing to do any official act or for showing or forbearing to show, in the
exercise of his official functions, favour or disfavour to any person or for rendering or
attempting to render any service or disservice to any person, with the Central
Government or any State Government or Parliament or the Legislature of any State
or with any local authority, corporation or Government company referred to in clause
(c) of section 2, or with any public servant, whether named or otherwise, shall be
punishable with imprisonment which shall be not less than six months but which may
extend to five years and shall also be liable to fine.
Explanations
(a) "Expecting to be a public servant." If a person not expecting to be in office
obtains a gratification by deceiving others into a belief that he is about to be in office,
and that he will then serve them, he may be guilty of cheating, but he is not guilty of
the offence defined in this section.
(b) "Gratification." The word "gratification" is not restricted to pecuniary gratifications
or to gratifications estimable in money.
(c) "Legal remuneration." The words "legal remuneration" are not restricted to
remuneration which a public servant can lawfully demand, but include all
remuneration which he is permitted by the Government or the organisation, which he
serves, to accept.
(d) "A motive or reward for doing." A person who receives a gratification as a motive
or reward for doing what he does not intend or is not in a position to do, or has not
done, comes within this expression.
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13. (e) Where a public servant induces a person erroneously to believe that his influence
with the Government has obtained a title for that person and thus induces that
person to give the public servant, money or any other gratification as a reward for
this service, the public servant has committed an offence under this section.
Sec 8: Taking gratification, in order, by corrupt or illegal means, to influence public servant
Whoever accepts or obtains, or agrees to accept, or attempts to obtain, from any
person, for himself or for any other person, any gratification whatever as a motive or
reward for inducing, by corrupt or illegal means, any public servant, whether named
or otherwise, to do or to forbear to do any official act, or in the exercise of the official
functions of such public servant to show favour or disfavour to any person, or to
render or attempt to render any service or disservice to any person with the Central
Government or any State Government or Parliament or the Legislature of any State
or with any local authority, corporation or Government company referred to in clause
(c) of section 2, or with any public servant, whether named or otherwise, shall be
punishable with imprisonment for a term which shall be not less than six months but
which may extend to five years and shall also be liable to fine.
Sec 9: Taking gratification, for exercise of personal influence with public servant
Whoever accepts or obtains or agrees to accept or attempts to obtain, from any
person, for himself or for any other person, any gratification whatever, as a motive or
reward for inducing, by the exercise of personal influence, any public servant
whether named or otherwise to do or to forbear to do any official act, or in the
exercise of the official functions of such public servant to show favour or disfavour to
any person, or to render or attempt to render any service or disservice to any person
with the Central Government or any State Government or Parliament or the
Legislature of any State or with any local authority, corporation or Government
company referred to in clause (c) of section 2, or with any public servant, whether
named or otherwise, shall be punishable with imprisonment for a term which shall be
not less than six months but which may extend. to five years and shall also be liable
to fine.
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14. Sec 10: Punishment for abetment by public servant of offences defined in section 8 or 9
Whoever, being a public servant, in respect of whom either of the offences defined in
section 8 or section 9 is committed, abets the offence, whether or not that offence is
committed in consequence of that abetment, shall be punishable with imprisonment
for a term which shall be not less than six months but which may extend to five years
and shall also be liable to fine.
Sec 11: Public servant obtaining valuable thing, without consideration from person
concerned in proceeding or business transacted by such public servant
Whoever, being a public servant, accepts or obtains or agrees to accept or attempts
to obtain for himself, or for any other person, any valuable thing without
consideration, or for a consideration which he knows to be inadequate, from any
person whom he knows to have been, or to be, or to be likely to be concerned in any
proceeding or business transacted or about to be transacted by such public servant,
or having any connection with the official functions of himself or of any public servant
to whom he is subordinate, or from any person whom he knows to be interested in or
related to the person so concerned, shall be punishable with imprisonment for a term
which shall be not less than six months but which may extend to five years and shall
also be liable to fine.
Sec 12: Punishment for abetment of offences defined in section 7 or 11
Whoever abets any offence punishable under section 7 or section 11 whether or not
that offence is committed in consequence of that abetment, shall be punishable with
imprisonment for a term which shall be not less than six months but which may
extend to five years and shall also be liable to fine.
Sec 13: Criminal misconduct by a public servant
(1) A public servant is said to commit the offence of criminal misconduct,-
(a) if he habitually accepts or obtains or agrees to accept or attempts to obtain from
any person for himself or for any other person any gratification other than legal
remuneration as a motive or reward such as is mentioned in section 7; or
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15. (b) if he habitually accepts or obtains or agrees to accept or attempts to obtain for
himself or for any other person, any valuable thing without consideration or for a
consideration which he knows to be inadequate from any person whom he knows to
have been, or to be, or to be likely to be concerned in any proceeding or business
transacted or about to be transacted by him, or having any connection with the
official functions of himself or of any public servant to whom he is subordinate, or
from any person whom he knows to be interested in or related to the person so
concerned; or
(c) if he dishonestly or fraudulently misappropriates or otherwise converts for his own
use any property entrusted to him or under his control as a public servant or allows
any other person so to do; or
(d) If he,-
(i) By corrupt or illegal means, obtains for himself or for any other person any
valuable thing or pecuniary advantage; or
(ii) By abusing his position as a public servant, obtains for himself or for any other
person any valuable thing or pecuniary advantage; or
(iii) While holding office as a public servant, obtains for any person any valuable
thing or pecuniary advantage without any public interest; or
(e) if he or any person on his behalf, is in possession or has, at any time during the
period of his office, been in possession for which the public servant cannot
satisfactorily account, of pecuniary resources or property disproportionate to his
known sources of income.
Explanation
For the purposes of this section, "known sources of income" means income received
from any lawful source and such receipt has been intimated in accordance with the
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16. provisions of any law, rules or orders for the time being applicable to a public
servant.
(2) Any public servant who commits criminal misconduct shall be punishable with
imprisonment for a term which shall be not less than one year but which may extend
to seven years and shall also be liable to fine.
Sec 14: Habitual committing of offence under sections 8, 9 and 12
Whoever habitually commits-
(a) An offence punishable under section 8 or section 9; or
(b) An offence punishable under section 12,
shall be punishable with imprisonment for a term which shall be not less than two
years but which may extend to seven years and shall also be liable to fine.
Sec 15: Punishment for attempt
Whoever attempts to commit an offence referred to in clause (c) or clause (d) of sub-
section (1) of section 13 shall be punishable with imprisonment for a term which may
extend to three years and with fine.
Sec 16: Matters to be taken into consideration for fixing fine
Where a sentence of fine is imposed, under sub-section (2) of section 13 or section
14, the court in fixing the amount of the fine shall taken into consideration the
amount or the value of the property, if any, which the accused person has obtained
by committing the offence or where the conviction is for an offence referred to in
clause (e) of sub-section (1) of section 13, the pecuniary resources or property
referred to in that clause for which the accused person is unable to account
satisfactorily.
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17. Investigation (SECTIONS 17 – 31)
Sec 17: Persons authorized to investigate
Investigation shall be done by a police officer not below the rank of:
a] In case of Delhi, of an Inspector of Police.
b] In metropolitan areas, of an Assistant Commissioner of Police.
c] Elsewhere, of a Deputy Superintendent of Police or an officer of equivalent rank
shall investigate any offence punishable under this Act without the order of a
Metropolitan Magistrate or a magistrate of first class, or make any arrest therefore
without a warrant.
If a police officer no below the rank of an Inspector of Police is authorized by the
State Government in this behalf by general or special order, he may investigate such
offence without the order of a Metropolitan Magistrate or Magistrate of First class or
make arrest therefore without a warrant.
Sec 19: Previous Sanctions
Previous sanction is required in following cases:
When an offence is punishable under sections 7,10,11,13 and 15 of the Act,
In case of a person who is employed in connection with the affairs of the Union or
State and is not removable from his office save by or with the sanction of the Central
or State Government as the case may be. In case of any other person, of authority
competent to remove him from his office.
Previous sanction is required; if the court feels that a failure has occurred in the
administration of justice, to do the following:
Reversal or alteration by the Court of Appeal of any findings, or any sentence or
order passed by a Special Judge. stay the proceedings on the ground of error,
omission or irregularity. Revision of any interlocutory order passed in inquiry, trial,
appeal or proceedings.
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18. Sec 21: Accused: A Competent Witness
Any person charged with an offence punishable under this Act, shall be a competent
witness for the defence and may give evidence on oath in disproof of the charges
made against him or any person charged together with him at the same trial:
Provided that-
(a) He shall not be called as a witness except at his own request;
(b) His failure to give evidence shall not be made the subject of any comment by the
prosecution or give rise to any presumption against himself or any person charged
together with him at the same trial;
(c) He shall not be asked, and if asked shall not be required to answer, any question
tending to show that he has committed or been convicted of any offence other than
the offence with which he is charged, or is of bad character, unless-
(i) The proof that he has committed or been convicted of such offence is admissible
evidence to show that he is guilty of the offence with which he is charged, or
(ii) He has personally or by his pleader asked any question of any witness for the
prosecution with a view to establish his own good character, or has given evidence
of his good character, or the nature or conduct of the defence is such as to involve
amputations on the character of the prosecutor or of any witness for the prosecution,
or
(iii) He has given evidence against any other person charged with the same offence.
Sec 27: Appeal And Revision
The High Court has given all power of appeal and revision that are provided to it
through Cr.P.C. as if the Court of Special Judge were a Court of Session trying
cases within the local limits of the High Court.
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19. Conclusion
Corruption is a termite that is eating up the pith of our society it not only hampers the
individual's growth but also the collective growth of our Country. Hence, it stands
highly imperative to control and then stop this growing menace and in this case the
Prevention of Corruption Act, 1988 comes to our aid. In fact, the Act has been
beautifully drafted; however, a huge power has been vested in the hands of the
Central and State Government in form of appointment of Special Judges, providing
sanctions etc. Hence the Act would become oblivious if the matter in question is
related to Central or State Governments. The PCA despite of this lacuna is a very
powerful Act which needs proper implementation in order to curb corruption from
grass root-level.
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20. COMMON WEALTH GAMES SCAM
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21. CWG Background
The Commonwealth Games is an international, multi-sport event involving athletes
from the Commonwealth of Nations. The event was first held in 1930 and takes
place every four years.
It was initially known as the British Empire Games and was renamed to the British
Empire and Commonwealth Games in 1954 and the British Commonwealth Games
in 1970, before finally gaining its current title for the 1978 edition. The Games are
overseen by the Commonwealth Games Federation (CGF), which also controls the
sporting programme and selects the host cities. A host city is selected for each
edition and eighteen cities in seven countries have hosted the event.
As well as many Olympic sports, the Games also include some sports that are
played mainly in Commonwealth countries, such as lawn bowls, rugby sevens and
netball.[1] Only six teams have attended every Commonwealth Games: Australia,
Canada, England, New Zealand, Scotland and Wales. Australia has been the
highest achieving team for eleven games, England for seven and Canada for one.
Although there are 54 members of the Commonwealth of Nations, 71 teams
participate in the Commonwealth Games as a number of British overseas territories,
Crown dependencies, and island states compete under their own flag. The four
Home Nations of the United Kingdom – England, Scotland, Wales and Northern
Ireland – also send separate teams.
CWG XIX New Delhi
The 2010 Commonwealth Games, officially known as the XIX Commonwealth
Games, were held in Delhi, India, from 3 to 14 October 2010. A total of 6,081
athletes from 71 Commonwealth nations and dependencies competed in 21 sports
and 272 events, making it the largest Commonwealth Games till date. It was also the
largest international multi-sport event to be staged in Delhi and India, eclipsing the
Asian Games in 1951 and 1982. The opening and closing ceremonies were held at
the Jawaharlal Nehru Stadium, the main stadium of the event. It was the first time
that the Commonwealth Games were held in India and the second time it was held in
Asia after Kuala Lumpur, Malaysia in 1998. The official mascot of the Games was
Shera and the official song of the Games, "Jiyo Utho Bado Jeeto", was composed by
celebrated Indian musician A.R. Rahman.
21

22. Preparation for the Games received widespread international media attention, with
criticism being leveled against the organizers for the slow pace of work, as well as
issues related to security and hygiene. However, all member nations of the
Commonwealth of Nations participated in the event, except Fiji, which is suspended
from the Commonwealth, and Tokelau, which didn't send a team, in spite of threats
of boycotts and athlete withdrawals. The internationally acclaimed opening ceremony
improved the image of the Games, and dispelled negative notions surrounding them,
with many observers remarking that they began on an apprehensive note, but were
an exceptional experience with a largely positive ending. The President of the
International Olympic Committee, Jacques Rogge, said that India had made a good
foundation for a future Olympics bid, which was reiterated by the Australian Ministry
of Sports. Commonwealth games Federation Chief Mike Fennell stated that "Delhi
delivered a fantastic Games". Some observers accused sections of the media of
bias, unfair expectations, and negative reporting.
The final medal tally was led by Australia. The host nation India had its best
performance ever to finish second.
How Delhi Got It - Bidding
The two principal bids for the 2010 Commonwealth Games were from Delhi, India
and Hamilton, Ontario, Canada. A ballot of members was held in November 2003 at
the Commonwealth Games Federation General Assembly in Montego Bay, Jamaica.
Delhi bid won by a margin of 46 votes to 22, confirming India's first successful bid for
the Games. The bid was Canada's attempt to hold the games for the fifth time.
India's bid motto was - ―New Frontiers and Friendships‖.
India shifted the balance in its favor in the second round of voting with a promise that
it would provide US$100,000 to each participating country, along with air tickets,
boarding, lodging and transport. The successful 2003 Afro-Asian Games in
Hyderabad showed India had the resources, infrastructure and technical know-how
to stage a big sporting event.
Organizing Committee
The Organizing Committee Commonwealth Games 2010 Delhi (OC CWG Delhi
2010) is organized into distinct Functional Areas, each relates to an area critical to
the successful delivery of the Games. A Functional Area or a cluster of related
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23. Functional Areas is headed by a Joint Director General (JDG) or an Additional
Director General supported by Deputy Director Generals, Advisors, Directors, Project
Officers, Assistant Project Officers, Administrative Assistant and Support Staff. A
total of 36 Functional Areas are envisaged in the General Operational Plan (GOP) of
the OC CWG Delhi 2010.
The OC CWG Delhi 2010 is structured along the following working groups:
OC CWG Delhi 2010 General Body
Executive Board
Executive Management
Assurance
Sub-committees
Secretariat
Functional Areas
Expert Groups & Consultants
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24. Key Stakeholders
The Host City Contract identifies and binds the five key stakeholders who are
responsible for the successful delivery of the XIX Commonwealth Games 2010
Delhi. It is incumbent upon these stakeholders to undertake all measures, including
adequate financial provisions, to deliver the Games in the most befitting manner
within the framework of the Constitution, Protocol and Guidelines of the
Commonwealth Games Federation (CGF). The key delivery partners are:
Commonwealth Games Federation (CGF);
Indian Olympic Association (IOA);
Organizing Committee (OC);
Government of the National Capital Territory of Delhi (GNCTD);
Government of India (GoI).
Objectives of OC
Prepare for, organize and conduct the XIX Commonwealth Games 2010 Delhi in
the National Capital Region (NCR) of Delhi;
Prepare for, organize and conduct other events (including sports and cultural
activities and festivals) as part of the XIX Commonwealth Games 2010 Delhi
including the Commonwealth Youth Games;
Promote all such activities that may be useful, necessary or helpful and which
contribute towards the conduct of the XIX Commonwealth Games 2010 Delhi;
Conduct XIX Commonwealth Games 2010 Delhi in a manner that would
encourage sports development and physical recreation and promote the shared
values of integrity, fair play, competence, team work, commitment to excellence,
respect for gender equality and tolerance including the fight against the use of
drugs and unhealthy or performance enhancing substances;
Advise all offices, institutions, government and other bodies of associations that
may be associated with the holding of the XIX Commonwealth Games 2010
Delhi;
Decide on all matters connected with the preparations and holding of the XIX
Commonwealth Games 2010 Delhi and bringing it to a successful completion;
and
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25. Do all such lawful things that are incidental or conducive to the attainment of the
above objectives or of any of them.
Vision, Mission & Values
Vision
The vision of the Organizing Committee Commonwealth Games 2010 Delhi is to
inculcate sports consciousness and culture in every Indian.
Mission
Deliver the ‗Best Commonwealth Games Ever‘
Build state-of-the-art sporting and city infrastructure for the facilitation of the
Games
Create a suitable environment and opportunities for the involvement of the
citizens in the Games
Showcase the culture and heritage of India
Project Delhi as a global destination
Project India as an economic power
Leave behind a lasting legacy
Values
In fulfilling its mission, the OC CWG Delhi 2010 will exhibit and abide by the following
values in its day-to- day operations:
Sportsmanship
Integrity
Excellence
Solidarity
Diversity
Competence
Transparency
Discipline
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26. Costs
The initial total budget estimated by the Indian Olympic Association in 2003 for
hosting the Games was 1,620 crore (US$328.54 million). In 2010, however, the
official total budget soon escalated to an estimated 11,500 crore (US$2.33 billion), a
figure which excluded non-sports-related infrastructure development. Business
Today magazine estimated that the Games cost 60,000 crore (US$12.17 billion).
The 2010 Commonwealth Games are reportedly the most expensive Commonwealth
Games ever.
That is 114 times more than the estimated original price tag of the Games, and four
times what the government spends on the National Rural Health Mission every year.
Timeline of CWG
In the run-up to the 3 October -14 October Games, the event which should have
highlighted India as an emerging global power threatened to turn into a national
embarrassment.
Following is a timeline of events
*********************
22 September 2010 | Several big name athletes have pulled out of the
Commonwealth Games citing security and health worries, adding to woes of an
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27. event meant to showcase India‘s ability to stand up with the likes of China on the
world stage.
21 September 2010 | The Commonwealth Games Federation (CGF) has given the
organizing committee two days to fix the facilities at the village even as the Prime
Minister‘s Office (PMO) intervened to demand an explanation from all concerned
agencies.
21 September 2010 | A footbridge under construction at the main stadium for
the Delhi Commonwealth Games collapsed on Tuesday, injuring up to six laborers,
an AFP reporter and police said.
21 September 2010 | Piling on the embarrassment for the organizers,
Commonwealth Games Federation chief executive Mike Hooper on Tuesday termed
the Athletes Village as ―filthy and uninhabitable‖ but hoped that with Commonwealth
Games Federation president Michael Fennell‘s intervention, the mess would be
sorted out in the next two days.
20 September 2010 | The Commonwealth Games will be safe, organizers insisted
Monday after a weekend gun attack sparked new security fears as the city gears up
to host thousands of athletes.
16 September 2010 | Beset by stories of corruption, a dengue epidemic and leaking
roofs of stadia, Commonwealth Games authorities showed off new venues in the
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28. face of a Workers clear the debris from a pedestrian bridge that collapsed outside
Jawaharlal Nehru stadium, the main venue for the Commonwealth Games, in New
Delhi on Tuesday. Storm of media criticism amid worries the Games, a showcase for
this emerging global giant, could be a disaster.
08 September 2010 | Just a week left for an international team to fly in for a final
inspection and the Commonwealth Games Village still looks like an island in the
Yamuna. Unable to drain the rainwater that has collected, which is breeding
mosquitoes, a desperate Delhi government has decided to call in the army.
20 August 2010 | All allegations of corruption against Delhi Commonwealth Games
organizers should be probed, CGF chief Mike Fennell said as he wrapped up a two-
day inspection of the venues by identifying some areas of concern which need to be
addressed immediately.
19 August 2010 Two state-run firms have withdrawn their sponsorship of the Delhi
Commonwealth Games due to ―negative publicity‖ of the event stemming from
allegations of graft and mismanagement.
14 August 2010 | Against the backdrop of a spate of controversies surrounding the
Commonwealth Games (CWG), Prime Minister Manmohan Singh will hold a meeting
with the ministers concerned on Saturday evening to review preparations for the
mega event to be held in October.
10 August 2010 | Mint deviates from the scandals emerging on an almost daily
basis to look at ten things that need to be completed to ensure the Commonwealth
games will be held at all.
06 August 2010 | Suresh Kalmadi, the man at the centre of the controversies
surrounding the Commonwealth Games (CWG) survived to fight another day, but
three of his aides were suspended by the Games‘ organizing committee (OC).
06 August 2010 | From leaking venue roofs to inflated orders of taxis and mobile
toilets, rows over New Delhi‘s Commonwealth Games have prompted Indian soul-
searching and piled pressure on the embattled ruling Congress party.
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29. 03 August 2010 | The Commonwealth Games seem to be sinking deeper into the
quagmire as reports of corruption, faked certificates and unending construction
delays become rife.
03 August 2010 | The growing allegations about the mismanagement of funds by
the organizers of the Commonwealth Games provided ready ammunition to the
opposition parties in Parliament as they trained their guns on the ruling Congress.
02 August 2010 | The government‘s plans to create a sizeable cushion to tide over
any power shortage that could arise during the Commonwealth Games (CWG)
suffered a setback following a delay in commissioning two proposed units of 500MW
each.
28 July 2010 | The spiraling expenditure on the Commonwealth Games implies a
heavy opportunity cost, while the benefit will only be a few moments in the limelight.
28 July 2010 | The Congress has disapproved of the public sparring between Mani
Shankar Aiyar and Suresh Kalmadi over the Commonwealth Games, saying senior
leaders of the party should speak responsibly when they reply to any issue in public.
22 July 2010 | The organizing committee of the Commonwealth Games (CWG) has
floated 19 tenders for which the bidding deadline varies from as few as two days to a
maximum of 21 days.
20 July 2010 | India aims the Commonwealth Games will be a showcase of its
economic clout, but with less than three months to go, the world‘s third largest
sporting event is instead laying bare its perennial infrastructure problems.
23 march 2010 | Delhi‘s Congress government has, citing a law that bans the sale of
beef in the city-state, said it wouldn‘t be on offer to athletes and support staff during
the Games, according to Raj Kumar Chauhan, minister for revenue and the public
works department. Hindus consider the cow to be a holy animal.
04 march 2010 | The government has reinstated Sanjiv Mittal, a financial expert who
was ousted from the Commonwealth Games (CWG) organizing committee by its
chairman Suresh Kalmadi almost a fortnight back in what was perceived at the time
as a snub to the Prime Minister‘s Office (PMO).
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30. 18 February 2010 | With less than 230 days left for the Commonwealth Games
(CWG), an internal audit by the organizing committee in the first week of February
revealed that none of the key logistics such as security, accommodation and
transport to move officials as well as athletes have been completed by the 16
February deadline.
15 February 2010 | A delay of nearly four months in reaching a decision appears to
have almost jeopardized the international broadcasting, security and data networks
of 2010 Delhi Commonwealth Games (CWG).
13 February 2010 | In five police stations across Delhi, batches of 50 policemen--
constables through inspectors--go through their classes in a day-and-a-half; with 16
such batches per police station, which translates into 4,000 policemen per month.
05 January 2010 | Delhi‘s chief minister is nervous about the hosting of
Commonwealth Games in the capital but the event‘s Organising Committee head
Suresh Kalmadi assures that all is well with the preparations despite umpteen
delays.
26 November 2009 | Where there‘s a few million dollars of expenditure, there‘s
usually an economic study pondering how the money was spent. This is particularly
true of big-ticket sporting events such as the Olympic or Commonwealth Games.
Even as the cost of hosting the Olympics touched a dizzying $40 billion in Beijing last
year—more than the entire gross domestic product of Sri Lanka—the literature on
the economic effects of such games has grown. Most scholars see only negative
economic benefits to hosting these events. From past studies, Mint culls five key
conclusions and transplants the benefit of their hindsight into Delhi‘s preparations for
the Games.
16 November 2009 | With less than a year left, work is being accelerated on Games
venues and city infrastructure, but for construction workers it hasn‘t meant boom
times.
09 November 2009 | India needs to draw up a comprehensive long-term sporting
program so that the money that‘s being spent on the Commonwealth Games doesn‘t
go down the drain.
30

31. The first is the issue of legacy and the second is with respect to developing a robust
and flexible disaster management system.
05 November 2009 | Prime Minister Manmohan Singh has decided to get involved in
the effort to get the Capital ready for next year‘s Commonwealth Games, seeking to
avert a potential national embarrassment on account of shoddy preparations for the
country‘s biggest sporting event in 27 years.
05 November 2009 | India has more than doubled the funds allotted for the2010
Commonwealth Games and is convening a special meeting of the Union cabinet to
review preparations. The decisions by the cabinet come after Prime Minister
Manmohan Singh decided to become involved in preparations for the Games that
have come in for significant criticism in the past few months.
28 October 2009 | Earlier this year, the Comptroller and Auditor General (CAG)
produced a report that evaluated the progress of Delhi‘s preparation for the 2010
Commonwealth Games.
01 October 2009 | Real estate developer Emaar MGF Land Ltd, preparing for an
initial public offering, will have to pay the Delhi Development Authority (DDA) a
penalty if there is a delay in the completion of the Commonwealth Games Village
project.
03 June 2009 | After the Delhi Development Authority (DDA) bailed out real estate
developer Emaar MGF Land Ltd by agreeing to purchase 333 flats at the
Commonwealth Games Village for Rs700 crore, the civil contractor for the project
says that it had received most of the dues that Emaar MGF owed.
15 March 2009 | The 2010 Commonwealth Games in New Delhi could be cancelled
if a security assessment one month from the start deemed them unsafe to proceed,
said a leading Australian official.
08 March 2009 | The Commonwealth Games Village in Delhi is unlikely to be
completed on time because of alleged delays in payment by the developer, Emaar
MGF Land Ltd.
31

32. 04 March 2009 | The 2010 Commonwealth Games will adopt security methods
similar to those used at last year‘s Beijing Olympics, its chief said, allaying fears the
attack on the Sri Lankan cricket team could scupper the event.
06 January 2009 | The global economic meltdown has hit the preparation of 2010
Commonwealth Games and Indian Olympic Association president Suresh Kalmadi
Tuesday said the budget for the mega-event will be increased in view of the financial
crisis.
04 December 2008 | The Union government is concerned about the pace at which
infrastructure projects sanctioned for the 2010 Commonwealth Games in New Delhi
are being built and the availability of hotel rooms in the Capital for the event.
According to Union minister for science and technology KapilSibal, the Centre has
formed a group of ministers (GoM) to monitor the construction work.
24 March 2008 | The Union government appears to have made sure that
construction of the Commonwealth Games Village on the ecologically sensitive
Yamuna riverbed will continue, despite at least two scientific studies concluding that
no permanent structures should come up in that area in order to protect the flood
plain.
08 March 2008 | State-owned India Tourism Development Corp. Ltd (ITDC) has
embarked on a makeover worth Rs170 crore at more than half of its 15 properties
ahead of the 2010 Commonwealth Games in New Delhi, a senior executive said.
18 July 2007 | The initiative is an attempt to address what is expected to be a
shortage of affordable rooms in the city during the 2010 Commonwealth Games.
CWG Scam Irregularity
Liquid Soap Dispensers rented for Rs 9,379 a piece or $206
After a bidding process, the OC selected four foreign firms for their mega
turnkey deal and, as it now transpires, while one vendor, Nussli of
Switzerland, for instance, is charging Rs 187 for renting out each ―liquid soap
dispenser,‖ another firm, British consortium ESAJV, is charging Rs 9,379 for
the same item. While the Hong Kong-based Pico Deepali Overlays
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33. Consortium is charging the OC Rs 2 for a single disposable glass, the ESAJV
consortium is charging India Rs 37 per glass.
All the hired items were split into seven operational ―clusters‖ covering all the
60 venues of the Games. Each cluster is made up of specific stadia and
venues.
An 82.5 KVA generator set is hired by OC for Rs 4.65 lakh from Pico Deepali.
A generator of the same specifications was hired from Nussli for Rs 14.58
lakh.
There is a difference of almost Rs 60 lakh for hiring a single public display
system of identical size and pitch between Pico Deepali and ESAJV with
several such systems being hired for a single games cluster
Operating Expenses escalating from Rs 399 crore in December 2002 to Rs
1,628 crore finally.
Medical equipment including tread mills have been bought or rented at 6-7
times their original price.
Allegations that funds meant for India's most deprived sections - the SC/ST -
have been diverted to the games funds. Stealing from the poor to fund the
elite's luxuries?
Construction so fragile, it falls before completion
The commonwealth games 2010 related infrastructure projects have left India's
capital city, New Delhi, resembling a war zone. Practically all roads are dug up,
cables lying all around, people jumping over little rocks as the pavements
resemble Moon like craters. With more than 50,000 crore rupees already pumped
in one would have expected at least decent output. Pitfalls:
The newly built shooting range at the Siri Fort area collapsed after one heavy
shower
The foot over bridge adjacent to the main venue of the Commonwealth
Games collapsed while being erected, injuring 27 workers who were dumped
into a tow away truck to a municipal hospital and dished out a compensation
of measly Rs 50,000 ($1097) for broken skulls and multiple fractures.
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34. Many of the games venues leaked during the monsoon and roofs of some
collapsed.
The Commonwealth Games village, the place where athletes from
participating countries will be put up is infested with dog poo, snakes, clogged
toilets, and unfinished work.
Fancy bill boards have erected all over the city to hide the piles of garbage,
slums that are a trademark sight in any major city in India.
Labor Law Violations
Campaigners in India have accused the organizers of enormous and
systematic violations of labor laws at construction sites. Human Rights Law
Network reports that independent investigations have discovered more than
70 cases where workers have died in accidents at construction sites since
work began. Although official numbers have not been released, it is estimated
that over 415,000 contract daily wage workers are working on Games
projects. Unskilled workers are paid 85 (US$1.7) to 100 (US$2) per day
while skilled workers are paid 120 (US$2.4) to 130 (US$2.6) INR per day
for eight hours of work. Workers also state that they are paid 134
(US$2.7) to 150 (US$3) for 12 hours of work (eight hours plus four hours of
overtime). Both these wages contravene the stipulated Delhi state minimum
wage of 152 (US$3.1) for eight hours of work. Nearly 50 construction
workers have died in the past two years while employed on Games projects.
These represent violations of the Minimum Wages Act, 1948; Interstate
Migrant Workmen (Regulation of Employment and Condition of Services) Act
1979, and the constitutionally enshrined fundamental rights per the 1982
Supreme Court of India judgment on Asiad workers. The public have been
banned from the camps where workers live and work – a situation which
human rights campaigners say prevents the garnering of information
regarding labor conditions and number of workers.
There have been documented instances of the presence of young children at
hazardous construction sites, due to a lack of child care facilities for women
workers living and working in the labor camp style work sites. Furthermore,
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35. workers on the site of the main Commonwealth stadium have reportedly been
issued with hard hats, yet most work in open-toed sandals and live in
cramped tin tenements in which illnesses are rife. The High Court of Delhi is
presently hearing a public interest petition relating to employers not paying
employees for overtime and it has appointed a four-member committee to
submit a report on the alleged violations of workers‘ rights.
During the construction of the Games Village, there was controversy over
financial mismanagement, profiteering by the Delhi Development Authority and
private real estate companies, and inhumane working conditions.
CAG Report:
Kalmadi deliberately delayed CWG contract
 'It was a significant failure and was the culmination of indecision of the
OC on whether to execute the work internally or through outsourcing'
No agreement for foreign consultants
 'OC in February 2010 decided to engage the consultancy firm at a cost
of Rs 98,500. Though the entire amount was released to the firm, OC
couldn't produce to any formal agreement in support of the payment'
CWG DG colluded with vendors
 'Though Nusli with annual turnover of Rs 418,27cr was eligible for
bidding for maximum 3 clusters, but OC allowed them to bid for 7 at the
instance of VK Verma, Dir Gen. Reason for this has not been recorded
in any of the documents'
Collusion between OC officials and vendors
 'Content of the consortium agreement indicates that the firm prior to the
date of publication of EOI was aware of the requirement of forming
consortium with Indian partners, about last date of submission of pre
qualification bid, etc. This indicates collusion between OC officials and
vendors'
'Colluded to form a cartel'
 'Such coincidence and precision of estimates, rarely seen in practice,
points out towards a collusion and possibility of cartel among the
vendors'
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36. Corruption in marketing: SMAM angle?
 Indifference is significant in the light of the fact that the OC's revenue
generation targets were by then far behind schedule and expenditure
had already gone up manifold, liability for which was ultimately borne
by GoI'.
Legal Cases against CWG Committee
The CBI has registered ten FIRs so far in the cases related to alleged irregularities in
the conduct of Commonwealth Games. One of these cases has been discussed in
brief below:
The CBI registered cases against six officials of CWG Organizing Committee and
two private firms for extending undue favors while appointing official Master Licensee
for merchandising and retailing during the games. Immediately, after filing of the
case, a team of CBI officials carried out search operations at 10 locations in Delhi,
Mumbai, Gurgaon, Chandigarh and Panchkula. The agency named six OC members
including the then director general Mr. VK Verma, joint director general (finance) Mr.
KUK Reddy, DDG (legal) Mr. Ram Mohan, DDG (procurement) Mr. Surjit Lal, (F & A)
Mr. M Jeychandran and the then ADG (Image and Look) Ms Sangita Welingkar and
firms Compact Disc India Limited (CDIL) and its group arm Premier Branch Private
Limited (PBPL), official sources said. The CBI alleged that these officials entered into
criminal conspiracy with the officials of the firms and by abusing their official
positions, extended undue favor to PBPL in appointing it as official Master License
for Merchandising and On-line and Retail Concessionaire for CWG-2010 for
sportswear, casual wear, kids wears against a minimum royalty amount of Rs 7.05
crore, they said.
The agency alleged in the case that after scrapping of the earlier bid on flimsy
grounds, the Evaluation Committee of the OC CWG-2010, dishonestly considered
the PBPL on the basis of the goodwill of CDIL, and on negotiations, PBPL submitted
an offer of Rs 5.20 crore for acquiring all the rights of master licensee for
merchandising, they said.
―Thereafter the private company (PBPL) submitted two cheques amounting to Rs 3.5
crore but the same were dishonored by the bank and as such the OC did not receive
36

37. any amount from the private company,‖ official spokesperson Ms Dharini Mishra said
here. Thus, it is alleged that the accused private company actually used the CWG
brand properties and earned a huge profit, but did not pay anything to the OC, and
the accused public servants caused huge pecuniary advantage to director of the
private company and corresponding wrongful loss to the government exchequer, she
said.
Further, Commonwealth Games Organizing Committee is fighting 14 legal cases
filed by several firms and its former employees seeking their dues. These cases
related to the finance department, workforce, catering, merchandising unit, cleaning
and waste management units, technology department and other works connected
with organising of the Games. Some of these cases are:
Ex-treasurer M Jayachandran, who is lodged in Tihar jail, has slapped a Rs
five-crore defamation suit in the Delhi High Court against the OC for allegedly
tarnishing his image. Jayachandran is an accused in the Timing-Scoring-
Result (TSR) scam that has led to a loss of over Rs 95 crore to the
exchequer. The CBI has accused him of manipulating the minutes of OC's
Finance Committee to justify the alleged forgery in the award of TSR contract.
OC's former chief of technology department Rajesh Kumar has moved the
high court for alleged harassment by the management among other charges.
Two companies - Unique Infoways and Bite and Byte - have also gone to the
high court seeking dues.
37

38. Parties Involved
Politician
Law
Bureaucrats
Enforcers
CAG
SCAM
Business Corporations
Politicians Involved
 Suresh Kalmadi, the Congress party representative to 15 Lok Sabha from the
Pune constituency. He was the Chairman of the Organizing Committee of the
Delhi Commonwealth games.
 Sheila Dikshit, Chief minister of Delhi: Was indicted for several irregularities in the
CWG processes both by Shunglu committee and also by the CAG
Bureaucrats Involved
 Lalit Bhanot, Secretary General of the Organising committee
 TS Darbari, Joint Director General of the Organising committee
 Sanjay Mahindroo, Deputy Director General of the Organising committee
 BS Lalli, CEO of Prasar Bharati
 M Jayachandran, Joint Director General (Accounts and Finance)
Corporations Involved
 AM Films
38

39.  AM Cars
 SIS Live
 Jaypee Group, Its alleged that the proceeds of corruption are parked here
through financial involvement of Suresh Kalmadi's son, Sumeer Kalmadi in the F1
circuit project at Greater Noida.
 MTNL
 HCL Infosystems
Businessmen Involved
 RSP Sinha, MTNL CMD
 SM Talwar, Executive director MTNL
 NK Jain, GM (Corporate Sales) MTNL
 Jitendra Garg, DGM MTNL
Whistleblowers/ Law Enforcers
The scam was unearthed by CAG even before the conduct of the games. Presently
the scam is being probed by the CBI.
Scams
The various contracts were manipulated by Kalmadi and team and allegedly
misappropriated huge amounts in the process.
Time Scoring Results System
Kalmadi has been accused of awarding illegal contracts to a Swiss firm for Timing-
Scoring-Result system for the Games causing a loss of Rs 95 crore to the
exchequer.
Queens Baton Relay
The Enforcement Directorate is probing the flow of funds and forex during the
Queens Baton Relay held in London prior to the Commonwealth Games, apart from
investigating the overlays-related works of the Games under the Prevention of
Money Laundering Act. The ED case registered the case under Fema after British
authorities referred to the Indian High Commission a matter regarding hiring of
London-based transport firm AM Cars and Vans at exorbitant prices, and to similar
39

40. high payments to AM Films for installing video screens at the venue of the Queen's
Baton Relay.
Broadcast Network
CBI registered another case in the Commonwealth Games scam and searched
residences of officials of Mahanagar Telecom Nigam Limited, or MTNL, and Noida
based HCL Infosystems for allegedly inflating cost of setting up a broadcast network
for the Games by nearly Rs 400 crore.
It is alleged that MTNL awarded the work of broadcast network based on IP/MPLS
Technology at an exorbitant price of approximately Rs 570.12 crore by manipulating
specifications in such a manner as to make them tailor made for the said bidder to
the said private company (HCL)," Mishra said. The agency alleged that initial
estimate of broadcasting data transmission project for the sporting extravaganza was
very limited with an initial estimate of Rs 31.43 crore, but MTNL officials included a
Broadcast Video Network based on IP-MPLS technology, which resulted in cost
escalation by Rs 380.04 crore.
CBI alleged that this change in specification was done with an intention to cause
huge pecuniary advantage to HCL Infosystems, causing loss to the exchequer.
Recruitment to Organising Committee
CBI sources lodged Preliminary Enquiry report against unknown persons in the
Games organising body after it received several complaints and references from the
Central Vigilance Commission claiming violation of norms in the appointments. They
said the complainants alleged involvement of sacked OC Chairman Suresh Kalmadi,
who is at present in judicial custody, and his close aides for irregularities in the
recruitment process.
In its PE, the CBI has alleged that during the period of 2003 to 2009, some persons
were nominated to the OC who had no expertise for various jobs. The Games
organising body had an overall strength of about 2,100 officials engaged for various
duties related to the mega sporting event. At present, there are about 100 officials on
the rolls. The CVC has also conducted an enquiry into the alleged recruitment scam
following complaints that it showed ghost employees on its muster rolls and violated
norms while inducting people. The High Level Shunglu Committee had also found
alleged irregularities in the recruitment procedures followed by certain OC officials.
40

41. CNN-IBN NDTV Hindustan Times
The CAG has questioned the deals between the CWG and certain media houses as
the organising committee (OC) apparently resorted to pick-and-choose policy in the
award of contracts worth over Rs. 6.73 crore. The CAG, in its report, tabled in
Parliament last week, has dubbed the process arbitrary and biased.
The contract for production and broadcasting of commercials was given to two news
channels, CNN-IBN and NDTV. The CAG said the OC followed an arbitrary
approach with no planning for specific channels, time slots and cost benefit analysis.
The CAG is more severe in its observations on the contract for creating a Games
Time website, meant to put out real time information on sporting events, given to HT-
Hungama - a consortium comprising Hindustan Times and Hungama. It has
lambasted the process of awarding the contract to the consortium and said their
work was deficient. A benevolent OC overlooked the non-performance and did not
encash the performance guarantee of Rs. 0.29 crore. A contract tweaked in favour of
HT-Hungama had no other provisions for penalties case of non-performance, the
CAG said.
It said the bidding process was squeezed and completed within two months, leading
to several irregularities. Among the three bidders, HT-Hungama's documentation
was deficient but ignored by the technical committee. It led the CAG to conclude that
the process was tailored in HT-Hungama's favour.
Response to Scam
 Kalmadi and Bhanot was sacked from the Organising Commitee by the Sports
ministry on Jan 2011
 Shunglu panel was constituted by Prime minister Manmohan Singh to go into the
irregularities in the conduct of the Games.
 After his arrest on 25 Apr 2011, Suresh Kalmadi was suspended by the Indian
National Congress
41

42. CWG Impact
Safety &
security
concern
Socio
Vandalism of
economic
games village
impact
Impact
of CWG
Infrastructure Organizational
Issue failure
Racism Sporting
Allegation controversy
We will discuss all of them one by one.
42

43. Socio Economic Impact
Socio Economic
Impact
Social & Sex &
Financial environmental Urban change prostitution
impact Boom
Financial
A leading research remarked that the 2010 Commonwealth Games will create "a
negative financial legacy for the country" and asked "when one in three Indians lives
below the poverty line and 40% of the hungry live in India, when 46% of India's
children and 55% of women are malnourished, does spending billions of dollars on a
12-day sports event build national pride or is it a matter of national shame?"
One of the outspoken critics of the Games is Mani Shankar Aiyar, former
Indian Minister for Youth Affairs and Sports. In April 2007, Aiyar commented that the
Games are "irrelevant to the common man" and criticized the Indian government for
sanctioning billions of dollars for the Games even though India requires massive
investment in social development programs. In July 2010, he remarked that he would
be "unhappy if the Commonwealth Games are successful".
Indian businessman Azim Premji called the 2010 Commonwealth Games a "drain on
public funds" and said that hosting the high-expense Games in India is not justified
given that the country had more important priorities facing it, such as education,
infrastructure and public health
Environmental Impact
Nearly 400,000 people from three large slum clusters in Delhi have been relocated
since 2004. Gautam Bhan, an Indian urban planner with the University of California-
Berkeley, said that the 2010 Commonwealth Games have resulted in "an
unprecedented increase in the degree, frequency and scale of indiscriminate
43

44. evictions without proper resettlement. We haven‘t seen [these] levels of evictions in
the last five years since the Emergency."
In response to a Right to Information (RTI) application filed for study and statements
by civil society groups, a report by the Housing and Land Rights Network (HLRN) -
an arm of the Habitat International Coalition - detailed the social and environmental
consequences of the event. It stated that no tolerance zones for beggars are
enforced in Delhi, and the city has arbitrarily arrested homeless citizens under the
"Bombay Prevention of Begging Act 1959".
Urban Change
Mitu Sengupta, a professor of politics at Ryerson University, Canada, points out that
there is a ―tradition of using ‗urban spectacles‘ such as the Olympics and World‘s
Fairs to enhance a city‘s global recognition, image and status, and to push through
controversial policy reforms that might otherwise linger in the pending file for years (it
is easier to undercut local opposition under the pressure of a fixed deadline and the
international spotlight).‖ She writes that the reforms involved are often ―the invention
of an affluent, globally connected minority that is relatively detached from local
conditions and the local population.‖ The 2010 Commonwealth Games, she says,
are being used to invigorate an elite-driven program of urban transformation‖ that
centers on privatization, securitization, and the construction of ―monuments to
vanity.‖ Sengupta expands upon this argument in a subsequent article in Z
Magazine Amita Baviskar, a professor of sociology at the Institute of Economic
Growth, University of Delhi, makes a similar argument, on how mega-events, like
the Olympics and Commonwealth Games, are used to advance narrow agendas of
urban reform that cater to the middle class and rich. She focuses on how, in
preparation for the Commonwealth Games, the city's slums were bulldozed in order
to make room for shopping malls and expensive real estate. Writer and activist
Gautam Bhan also draws a connection between the Commonwealth Games and
anti-poor urban development in an article posted on Kafila, an alternative webzine
Sex Slavery and Prostitution Boom
There has been a boom in the number of young girls, mostly from impoverished
parts of India, coming to Delhi after being offered jobs by disguised criminals, only to
be taken prisoner and forced into sex slavery. The number of victims is believed to
be in the hundreds. Many brothels have been running English courses for sex
44

45. workers and upgrading their facilities in anticipation of a business upturn during the
games. Overseas prostitutes are also expected to come as tourists and ply their
trade. One anti-trafficking NGO has claimed that there are reports of 40,000 women
being brought in from northeastern India alone. A spokesperson said that recruits
from that part of India were favoured because of their lighter skin. It has been
reported that over 3,000 bar girls in Mumbai have stopped going to work; this has
been blamed on an exodus to Delhi for the Commonwealth Games.
Organizational Failure
Organizational
failure
Vigilance-related
Preparation Mass volunteer Poor ticket sales Racism
irregularities and
delays walkout and attendance allegations
Over-Invoicing
Vigilance-Related Irregularities and Over-Invoicing
On 28 July 2010, the Central Vigilance Commission an Indian government body
created to address governmental corruption released a report showing irregularities
in up to 14 CWG projects. As per official reports, total 129 works in 70 organizations
have been inspected. The detailed preliminary findings included the award of work
contracts at higher prices, poor quality assurance and management, and work
contracts awarded to ineligible agencies.
There are also allegations of widespread corruption in various aspects of organising
the games including procurement and awarding contracts for constructing the game
venues. The Commonwealth Games Organising Committee on 5 August 2010
suspended joint director T S Darbari and M Jayachandran following the report of the
three-member panel which was probing the financial irregularities related to the
Queen's Baton Relay.
45

46. Also, Organising Committee treasurer Anil Khanna resigned from the post in the
wake of allegations that his son's firm had secured a contract for laying synthetic
courts at a tennis stadium. The GlobalPost news agency reports that scandals have
come to light, such as "shadowy off-shore firms, forged emails, inexplicable
payments to bogus companies and inflated bills — for every purchase from toilet
paper to treadmills." Among the alleged corruption and defrauding of the games
budget, toilet paper rolls valued at $2 were costed at $80, $2 soap dispensers at
$60, $98 mirrors at $220, $11,830 altitude training simulators at $250,190
Preparation Delays
In September 2009, CGF Chief Mike Fennell reported that the games were at risk of
falling behind schedule and that it was "reasonable to conclude that the current
situation poses a serious risk to the Commonwealth Games in 2010". A report by
the Indian Government released several months prior found that construction work
on 13 out of the 19 sports venues was behind schedule.
The Chief of the Indian Olympic Association Randhir Singh has also expressed his
concerns regarding the current state of affairs. Singh has called for the revamp of the
Organising Committee commenting that India now has to "retrieve the games".Other
Indian officials have also expressed dismay at the ongoing delays but they have
stated that they are confident that India will successfully host the games and do so
on time.
As the Times of India reports, all CWG projects were to be completed by May 2009
and the last year should have been kept for trial runs. The newspaper further reports
that the first stadium was handed over for trial runs in July 2010 only. To put the
delays in perspective, Beijing National Stadium was completed much ahead of
schedule for the 2008 Summer Olympics, while the venues for 2012 Summer
Olympics in London are scheduled to be delivered one year before the games and
the construction of the venues is on track.
In August 2010, the Cabinet Secretariat took a decision to appoint 10 officers of the
rank of Joint and Additional Secretaries to oversee the progress of the construction
of stadiums. Each officer is allocated a stadium and given the responsibility to
ensure that the work completes in time for the games.
46

47. Mass Volunteer Walkout
Around 10,000 of the 22,000 selected volunteers quit, less than a week before the
event. This has been blamed on a lack of training for personnel, or dissatisfaction
with assignments. There are reports that some who have quit have not returned their
uniforms.
Poor Ticket Sales and Attendance
The start of the Games saw extremely poor ticket sales, with many venues near
empty.In a press conference, organising chairman Suresh Kalmadi admitted that
there were problems, and blamed empty venues on ticket booths not being set up
outside stadiums.Commonwealth Games chief Mike Fennell admitted that many
venues had been nearly empty on the opening day of the Games, saying "A number
of venues do not have lots of spectators one area which causes us concern". On the
second day of competition, less than 100 people filled the hockey venue–the 19,000-
seat MDC Stadium. Less than 20 people watched the first tennis match of the
tournament in the 5,000-seat tennis stadium, and just 58 fans watched the netball
opening match.
One Indian competitor tried to buy tickets for relatives online, only to be informed by
the website that tickets were sold out. When he arrived to compete, he found the
venue to be empty.
The streets of Delhi were deserted for the cycling road races and walking event.
Racism Allegation
African countries have complained that they are getting second-class treatment from
the Games organizers, in spite of them offering India a hand in the preparation of the
Games. They have alleged that accommodation given to them was inferior
compared to the accommodation provided to the Australian and New Zealand teams.
They went on to state that India was complaining about being victims of racial bias in
the reporting of the Games; while simultaneously perpetrating the same kind of
racism against the African countries
47

48. Infrastructure Issue
Transport Infrastructure
The Delhi Airport Metro express built by Reliance Infrastructure and CAF
Beasain missed its deadline of 31 July 2010 and the private consortium was fined Rs
11.25 crore
Venues
Less than two weeks before the opening ceremony, Fennell wrote to the Indian
cabinet secretary, urging action in response to the village being "seriously
compromised." He said that though team officials were impressed with the
international zone and main dining area, they were "shocked" by the state of the
accommodation. "The village is the cornerstone of any Games and the athletes
deserve the best possible environment to prepare for their competition.The BBC
published photographs of the village taken two days before 23 September showing
unfinished living quarters.
New Zealand, Canada, Scotland and Northern Ireland have expressed concern
about unlivable conditions. The Times of India newspaper reports that the Scottish
delegation apparently submitted a photograph of a dog defecating on a bed in the
games village. Hooper said that there was "excrement in places it shouldn't be" in
the athletes' quarters and that members of visiting delegations had to help clean up
the unsanitary things. The BBC released images of bathrooms with brown-
colored paan stains on the walls and floor, liquids on the floor, and brown paw prints
on athletes' beds. Lalit Bhanot, the secretary general of the Organising Committee,
rejected the complaint that sanitation was poor by saying that, due to cultural
differences, there are different standards about cleanliness in India and the western
world, a statement for which he was widely ridiculed in Indian and international
media. Bhanot went on to say of the athletes' village that, "This is a world-class
village, probably one of the best ever.
Pakistan also made reservations over the condition of the athletes‘ village and
asked for an alternate accommodation to be made available to its contingent while
preparation was still in progress.
48

49. Problems with functionality of equipment and infrastructure during events
On the first night of swimming, debris landed in the swimming pool, causing delays
ahead of a race. It is believed that part of the ceiling or its paint had fallen off.
Before the last night of swimming finals, the filtration system broke down and the
pool was turbid and murky during the warmup session and the finals, and the pool
has been described as the least clear ever seen for a swimming competition. A
disproportionate number of swimmers fell ill with intestinal complaints, leading to
concerns over the cleanliness and sanitation of the pool. Early suspicions rested on
the quality of water in the swimming pools of the SPM Complex,, but other
competing teams, including South Africa, reported no such illness. Daily water
quality tests were being carried out on the water of the pools, as mandated by the
event standards. Additional tests were ordered after news of the illnesses, but they
also did not find anything amiss. The Australian team's chief doctor, Peter Harcourt,
ruled that the "chances of the [Delhi] pool being the cause of the problem is very
remote" and praised the hygiene and food quality in the Delhi Games Village.He
suggested that it could be a common case of Traveler's diarrhea (locally called Delhi
belly), or the Australian swimmers could have contracted the stomach virus during
their training camp in Kuala Lumpur, Malaysia. English Olympic and Commonwealth
gold-medalist swimmer Rebecca Adlington said that the water quality was absolutely
fine.
A dog entered the athletics arena.
After the opening ceremony, the ground at the athletics was damaged, and the grass
infield and the track was still being re-laid two hours before competition started
Vandalism in games village by Athletes
Condoms and Toilet Blockages
An Indian newspaper during the games reported that used condoms flushed down
the toilets in the athlete's village had caused some drains to become blocked,
necessitating action by plumbers to clear the pipes.
49