CWG: Contract awarded without signing pact?

The official merchandising company for the Commonwealth Games had not signed an agreement with the Organising Committee (OC) despite repeated reminders, according to the OC that feels that it can recover "losses" from the firm "through litigation".

The official merchandising company for the Commonwealth Games had not signed an agreement with the Organising Committee (OC) despite repeated reminders, according to the OC that feels that it can recover "losses" from the firm "through litigation".

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A cheque of Rs 1 crore submitted by the company, Premiere Brands Limited (PBL), to the OC was "returned" by the bank, an Right to Information (RTI) reply revealed. The OC said it has filed a criminal complaint with the Connaught Place Police station against M/s PBL in a cheque bounce case and also proceeded legally in courts.

The OC, in the RTI reply, said, "Despite repeated reminders through phone and email, M/s PBL did not sign the long form agreement (LFA)."

The PBL had pulled out of the mega-event in August, citing delay in start of the process. However, it later came back, citing "national interest".

The OC now hopes to recover the losses through litigation. "The decision to select the PBL was taken with a competent authority's approval. But the loss suffered is recoverable through litigation," it said in reply to an RTI query from activist SC Agrawal.