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A major scam hit the Commonwealth Games on Friday with allegations being made
that a substantial sum of money was transferred to a little known U.K. company from
the Games Organising Committee (OC) about which the British government has
raised questions.

Television channels reported that over £ 4.50 lakh were transferred through a British
bank to the A M Films company, said to be a one man show and which was also
receiving £ 25,000 a month.

µTimes Now' quoted documents to show that the entire deal came to light when the
OC asked for a VAT refund of £ 14,000 in March this year for the payments made to
the British company.

The channel quoted a letter of the British Revenue and Customs Department to the
Indian High Commission stating that there was no written contract between the
CWG and A M Films and that no tendering procedure had been followed and there
was no paper work regarding the contract.

The OC is reported to have made a payment of nearly £2.5 lakh for video equipment
purchase while A M Films had claimed that it provided services of car hire, makeshift
toilets, barriers and electricity.

Indian High Commission sources said the information provided by the U.K.
authorities had been forwarded to the Sports Ministry for follow-up action.

³The U.K. authorities had referred some matter regarding A M Films to us. We
passed on the information to the Indian government. The matter is now with the
Indian government,´ the sources told PTI.

In Delhi, Cabinet Secretary K.M. Chandrashekhar has conveyed concern over the
charges as well as delay in preparations to the OC of the mega sporting event in
October this year.

Mr. Chandrashekhar held a review meeting on Friday. It was attended by secretaries

of agencies concerned, including officials of the OC, and Ministries of Youth and
Sports, Urban Development, and Tourism.

His remarks come close on the heels of the Central Vigilance Commission asking its
officers to re-examine all the tenders and procurement process related to the


Enforcement Directorate sources in Delhi said the agency was probing the issue.
The company was involved in the arrangements for the Queen's Baton Relay when it
started its journey from London with a function outside the Buckingham Pala ce.

Late in the night, the OC refuted the allegations about financial irregularities with
relation to the launch of the QBR in London on October 29 last year.

³We must point out that we have not received any official communication in this
regard,´ it said in a statement.

³We have cleared all the payments in October itself. We asked for the VAT refund
and we got it´ OC Secretary General Lalit Bhanot, who dismissed the allegations of
financial irregularities, said.

³There is no money laundering and no manipul ation. Whatever payment made has
been done officially and all transactions are transparent,´ he told Times Now.

The British authorities have sought to know details of how A M Films which supplied
cars for rentals was involved in supply of video equipment a nd providing consultancy
for costume designing.


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