Kalmadi aide arrested in CWG overlays scam

Kalmadi aide arrested in CWG overlays scam

The CBI on Friday arrested former Commonwealth Games Organising Committee Chairman Suresh Kalmadi's close aide Shekhar Deorukhkar in the multi-crore rupee overlays scam in connection with last year's mega sporting event.

Deorukhkar is the fifth person to be arrested in the scam in which nearly Rs 600 crore worth contracts relating to the Games' overlays project are under the scanner of various agencies.

The arrest of the Congress MP's personal assistant in Pune came after the investigating agency had registered a fresh case under various legal provisions in award of contracts for overlays at different venues for the Games at exorbitant rates, a CBI spokesperson said in New Delhi.

Deorukhkar was picked up from his residence in Kothrud area by the CBI team that landed in Pune from Delhi and was booked under IPC 420 and 120(b)--cheating and conspiracy charges. He has been Kalmadi's PA for over 15 years. He was later produced before district judge S Sardesai who granted CBI transit remand of the accused.

The CBI was directed to produce the accused in a Delhi court by February 14, according to Pratap Pardeshi, counsel who appeared for Deorukhkar.

It had earlier arrested three senior CWG officials T S Darbari, Sanjay Mohindroo and M Jayachandran. All the three were subsequently granted bail. Beenu Nanu, the head of two event management companies, was the fourth person to be picked up.

Overlays works included supply of tents, marquees, pre-fabricated units, portable toilets, containers, security fences, furniture, public display LED boards, floor finishes, material handling equipment, gensets, cabling, UPS, air-conditioners, lighting, civil construction, athletic exercise equipment and grandstands.

The agency had conducted a number of searches in certain premises across the country early in January in connection with the scam in the Games, including those of an officer under Union Sports Ministry.

The overlays contracts are also under the scanner of the Income Tax Department and the Enforcement Directorate.

CBI had earlier registered three FIRs for alleged corruption in the projects and events in the run up to the sporting extravaganza.

Two of these cases were in connection with alleged irregularities in the Queen's Baton Relay.

CBI, in its application before the court said, "during the course of investigation, the accused Shekhar Deorukhkar has been arrested after observing all legal formalities." Deorukhkhar has also been booked under provisions of the Prevention of Corruption Act.

It said the arrest was in connection with the overlays contracts case where CWG officials were accused of "entering into a criminal conspiracy with Binu Nanu, MD of Meroform India/ GL events and others to cause undue benefit to GL Events,Meroform, France, PICO Deepali Consortium Delhi, Nussli (Switzerland) Ltd and ESAJVD Art: Indo consortium Delhi.

"The accused public servants by abusing their offical position, cheated and caused undue loss to government of India and corresponding gain to the said four companies and themselves," the agency added.