The Enforcement Directorate (ED) has found that there was almost no requirement to hire two firms — AM Car and Van and AM Films — for the conduct of Queen’s Baton Relay (QBR) in London in the run-up to the Commonwealth Games (CWG).
According to sources, the Organising Committee (OC) of the CWG, 2010, had already contracted Jack Morton Worldwide (JMW) as the event manager for the QBR. Under the contract, JMW was to provide items such as video screens for the QBR. But the OC awarded almost similar contract to AM Films in a suspicious manner. The OC made payment of £38,6237 to AM Car and AM Film, which were owned by Ashish Patel.
The ED is likely to file a complaint (equivalent of chargesheet) under the Foreign Exchange Management Act (FEMA) in connection with the alleged financial irregularities in the conduct of QBR. The complaint is likely to name the OC and its officer-bearers, including former chairman Suresh Kalmadi.
This will be the second chargesheet or complaint of the ED in the CWG scam. The directorate had filed its first complaint under FEMA in connection with its probe into the overlays scam.
According to sources, the bills submitted by AM Car have also been found to be dubious as most of the hired vehicles were shown to have travelled more than 150 miles in a day in London.
The CBI has already filed two FIRs (one against AM Car and second against AM Film) with regard to the QBR. The CBI is yet to file a chargesheet in the case. But the ED is likely to file a consolidated complaint pertaining to the QBR before the adjudicating officer (a senior officer of the ED) very soon. Under FEMA, the adjudicating officer can impose a three times penalty of the amount contravened.