Amid allegations of shady fund transfers to Indian and foreign firms by the CWG Organising Committee (OC), the Income Tax (IT) department has launched an investigation into all major expenditures done by the OC.
"We are scrutinising the OC's bank accounts and the expenses made, as we have reasons to suspect that funds may have been siphoned off by some individuals in connivance with private parties,” said an IT source.
The department has also zeroed in on some of the beneficiaries and is collecting more details before taking action against them, he added. IT authorities are also looking into money transfers for procurement, hiring and leasing of 470 articles, ranging from sports and training accessories to stationery that the OC has imported through four firms.
These involve an expenditure of about Rs 650 crore.
The source said adding officials will be going through invoices of transactions to find out if the expenses were genuine. The department is already tracking the funds transferred to the Australian company, Sports Marketing And Management (SMAM) and UK-based A.M. Films.
SMAM's Singapore-based subsidiary had won the CWG contract for bringing in sponsorships.
Though it had committed to give US $ 122 million to the OC through CWG sponsorships by Sep 1, 2010, it company hasn’t been able to tie up with sponsors, as expected.
The Enforcement Directorate had recently sought the IT department's help in trailing the money paid to these firms.
The directorate has, meanwhile, sought information from the Reserve Bank of India (RBI) to find out whether the OC had obtained all necessary approvals before transferring the funds to foreign firms.