CVC asks ED to probe FEMA violations in CWG projects

CVC asks ED to probe FEMA violations in CWG projects

Press Trust Of India
New Delhi, November 26, 2010


The Central Vigilance Commission (CVC), probing alleged financial bungling in the Commonwealth Games-related projects, has referred certain cases to the Enforcement Directorate to check whether there was violation of foreign exchange laws. Official sources said that projects like construction of Commonwealth Games Village near Akshardham temple and flyovers, hiring and procurement of medical and fitness equipment and conduct of outdoor publicity campaign by the Organising Committee may come under the ED scanner.

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

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

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

A CVC team has seized documents from the Games OC office here to avoid any tampering of evidence. “There has been some cases where the Commission has noticed alleged violations of forex laws.

We will be giving those cases to ED for interrogation and report,”a CVC official said requesting anonymity. Sources in the anti-corruption watchdog said that the officials working in its “special cell” – exclusively made to deal with cases of Games corruption – will meet ED officials early next month in this regard.