I-T department to investigate over billing of goods
October, 25th 2010
The Commonwealth Games probe gets wider - Income Tax (I-T) department to investigate over billing of goods used in the Games Village. The Comptroller and Auditor General (CAG) will be expanding the scope of its audit. The CAG will be examining contracts between parties responsible for construction related works.
Earlier, Games Village organisers were caught in an embarrassing situation just days before the opening of the Games when pictures of dirty toilets, dogs littering in the rooms and in-operational lifts appeared in the media.
After raids on major firms that bagged contracts, the I-T dept is all set to investigate other discrepancies.
The Income Tax department will investigate the alleged overbilling of goods like air conditioners that were reportedly bought for higher prices. It will be closely examining the rate contracts and comparing market and procurement prices.
Sources in the department said the I-T probe will specifically look into the contracts awarded by the Games Organising Committee and the role of its officials and contractors including charges of bribing which include PICO international and Deepali Designs, of which the BJP member Sudhanshu Mittal was a Director, G L Litmus and Meroform consortium, Comfort Net and Nussli India consortium and ESG Arena and D-Art furniture.
The I-T department had conducted searches at about 30 locations in and around the National Capital on October 19 as part of its probe into alleged financial irregularities in works related to the Commonwealth Games.