In what could be Suresh Kalmadi effect, the Sports Ministry has refused to release funds to foreign firms worth Rs 100 crore till the investigating agencies gives clearance.
Missions of eight countries in a joint letter to Sports Minister Ajay Maken had sought immediate release of pending funds over Rs 100 crore saying they have clearance from all regulatory bodies in India.
The letter was written by eight foreign missions including Britain, France, Germany andd Italy on behalf of companies, who payments were held back after the Commonwealth Games scam surfaced.
Acting on the letter, the Sports Minister Ajay Maken sought opinion of the law ministry whether the money can be released to them or not. The minister had also wanted to which of these contracts were being investigated.
The Law ministry has said that the money should not be released until and unless the investigating agencies clear the payments. Many of the cases, in which the payment has been stopped, are being investigated by the Central Bureau of Investigation.
One such case is related to Swiss Timing Machines in which former president of CWG Organising Committee Suresh Kalmadi has been arrested. “There is no way payment to company in this case can be made,” an official said.
Similarly, the investigating agencies have advised the sports ministry not to release payments in other cases being investigated by them. Ministry officials said they have made it clear that no payment will be released till investigations get over.
The letter had said that several of these companies have still not received clearances from the RBI, Central Board of Excise and Customs to release shipping containers.