CWG scam: CBI arrests pvt firm head

Binu Nanu, Director GL Events - Meroform, was arrested by the probe agency and remanded in four days police custody, official sources said. The CBI had on January 12 searched office and residence premises of Nanu and many others after it registered a case in connection with the over Rs 600 crore alleged overlays scam. Nanu's wife Roopana is also one of his associate in the business.

The FIR, the fourth in connection with the CWG games, was registered against OC Director General V K Verma. CBI had alleged that Verma and others entered into a "criminal conspiracy" with managing directors and directors of private companies in the award of contracts for overlays for different venues of CWG-2010 at "exorbitant rates".

The overlays contracts are also under the scanner of the Income Tax Department and the Enforcement Directorate. Overlays works included supply of tents, marquees, prefabricated units, portable toilets, containers, security fences, furniture, public display LED boards, floor finishes, material handling equipment, gensets, cabling, UPS, lighting, air-conditioners, civil construction, athletic exercise equipment and grandstands.

The CBI had earlier registered three FIRs for alleged corruption in projects and events in the run up to the sporting extravaganza. Two of these cases were in connection with the alleged irregularities in the Queen's baton relay.