Shunglu panel indicts Aruna Sharma, Lalli in Commonwealth Games scam

PMO indicates stern action against those involved

The High Level Committee which went into alleged financial irregularities in the Commonwealth Games has indicted suspended Prasar Bharti CEO B S Lalli and Doordarshan Director General Aruna Sharma, accusing them of “collusion” with SIS LIVE of UK.

The panel said that based on documents available it has concluded that the actual cost of the contract awarded to SIS LIVE was at best about Rs 111 crore, thus resulting in a profit of at least Rs 135 crore for SIS LIVE and Zoom Communications. “The responsibility for providing undue benefit to SIS LIVE and Zoom Communications is primarily that of the then CEO, Prasar Bharti and Director General Doordarshan. They cannot be recused from the acts of omission and commission which facilitated this wrong doing,” it said.

The Committee found that the contract for production and coverage of CWG last year was awarded to SIS LIVE (partnership firm of SIS OB and SIS, both UK-based firms) at a cost of Rs 246 crore on the basis of a single bid as the other nine responses were either rejected or entities backed out due to unduly restrictive and stringent conditions.

The contract was assigned by SIS LIVE to Zoom Communications for Rs 177 crore on the same day on which the contract was signed between Prasar Bharti and SIS LIVE.

The Committee said, what appears to be the case is that SIS LIVE secured the contract for Rs 246 crore; assigned it to Zoom Communications for Rs 177 crore; provided no service and made a profit of the difference between the contracted price and the assigned price, i.e., Rs 69 crore.

The two-member panel headed by former Comptroller and Auditor General V K Shunglu recommended action against the two officials saying “they cannot be recused from the acts of omission and commission which facilitated this wrong doing”.

The 236-page interim report was submitted to the Centre on Monday and the prime minister has taken a “serious view” of the findings. He has sent it to the Cabinet Secretary and sought follow up steps within a week. “Stern action is likely to be taken on the basis of the Cabinet Secretary’s recommendations,” a PMO statement said.