Legal Aspects Of Business                       End Term Report                              Submitted by                 ...
Table of ContentsTHE PREVENTION OF CORRUPTION ACT, 1988 .....................................................................
Scams .......................................................................................................................
How the Telecom Operation Is Administered ...................................................................................
Misrepresentation of Facts By The Nine Real Estate Companies ............................................... 150      Fals...
Answer To Q1. ...............................................................................................................
THE PREVENTION OF CORRUPTION ACT, 1988Introduction"If we cannot make India corruption-free, then the vision of making the ...
a) A corporation established by or under a Central, Provincial or State Act.b) An authority or a body owned controlled or ...
c) Any person who holds an office result to which he is empowered to prepare,publish maintain or revise an electoral roll ...
- Any conspiracy to commit or any attempt to commit or any abetment of any of theoffences specified under the Act.The qual...
A Special Judge may pass a sentence authorized by law for the punishment of theoffence of which a person is convicted. A S...
Offences and Penalties (SECTION 7 – 16)Sec 7: Public servant taking gratification other than legal remuneration in respect...
(e) Where a public servant induces a person erroneously to believe that his influencewith the Government has obtained a ti...
Sec 10: Punishment for abetment by public servant of offences defined in section 8 or 9Whoever, being a public servant, in...
(b) if he habitually accepts or obtains or agrees to accept or attempts to obtain forhimself or for any other person, any ...
provisions of any law, rules or orders for the time being applicable to a publicservant.(2) Any public servant who commits...
Investigation (SECTIONS 17 – 31)Sec 17: Persons authorized to investigateInvestigation shall be done by a police officer n...
Sec 21: Accused: A Competent WitnessAny person charged with an offence punishable under this Act, shall be a competentwitn...
ConclusionCorruption is a termite that is eating up the pith of our society it not only hampers theindividuals growth but ...
COMMON WEALTH GAMES SCAM           20
CWG BackgroundThe Commonwealth Games is an international, multi-sport event involving athletesfrom the Commonwealth of Nat...
Preparation for the Games received widespread international media attention, withcriticism being leveled against the organ...
Functional Areas is headed by a Joint Director General (JDG) or an AdditionalDirector General supported by Deputy Director...
Key StakeholdersThe Host City Contract identifies and binds the five key stakeholders who areresponsible for the successfu...
Do all such lawful things that are incidental or conducive to the attainment of the   above objectives or of any of them.V...
CostsThe initial total budget estimated by the Indian Olympic Association in 2003 forhosting the Games was 1,620 crore (US...
event meant to showcase India‘s ability to stand up with the likes of China on theworld stage.21 September 2010 | The Comm...
face of a Workers clear the debris from a pedestrian bridge that collapsed outsideJawaharlal Nehru stadium, the main venue...
03 August 2010 | The Commonwealth Games seem to be sinking deeper into thequagmire as reports of corruption, faked certifi...
18 February 2010 | With less than 230 days left for the Commonwealth Games(CWG), an internal audit by the organizing commi...
The first is the issue of legacy and the second is with respect to developing a robustand flexible disaster management sys...
04 March 2009 | The 2010 Commonwealth Games will adopt security methodssimilar to those used at last year‘s Beijing Olympi...
Consortium is charging the OC Rs 2 for a single disposable glass, the ESAJV      consortium is charging India Rs 37 per gl...
Many of the games venues leaked during the monsoon and roofs of some      collapsed.      The    Commonwealth      Games  ...
workers on the site of the main Commonwealth stadium have reportedly been     issued with hard hats, yet most work in open...
Corruption in marketing: SMAM angle?           Indifference is significant in the light of the fact that the OCs revenue ...
any amount from the private company,‖ official spokesperson Ms Dharini Mishra saidhere. Thus, it is alleged that the accus...
Parties Involved                                          Politician                         Law                          ...
   AM Cars   SIS Live   Jaypee Group, Its alleged that the proceeds of corruption are parked here    through financial ...
high payments to AM Films for installing video screens at the venue of the QueensBaton Relay.Broadcast NetworkCBI register...
CNN-IBN NDTV Hindustan TimesThe CAG has questioned the deals between the CWG and certain media houses asthe organising com...
CWG Impact                                          Safety &                                          security            ...
Socio Economic Impact                                   Socio Economic                                       Impact       ...
evictions without proper resettlement. We haven‘t seen [these] levels of evictions inthe last five years since the Emergen...
workers and upgrading their facilities in anticipation of a business upturn during thegames. Overseas prostitutes are also...
Also, Organising Committee treasurer Anil Khanna resigned from the post in thewake of allegations that his sons firm had s...
Mass Volunteer WalkoutAround 10,000 of the 22,000 selected volunteers quit, less than a week before theevent. This has bee...
Infrastructure IssueTransport InfrastructureThe Delhi     Airport   Metro   express   built   by Reliance   Infrastructure...
Problems with functionality of equipment and infrastructure during eventsOn the first night of swimming, debris landed in ...
CWG+2G+CBSE Project report
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CWG+2G+CBSE Project report

  1. 1. Legal Aspects Of Business End Term Report Submitted by Section 19B, Group-5 Group MembersS. No. Name Roll No. S. No. Name Roll No. 1 Shelly Jain 191111 6 Khem Singh 191090 2 Rachit Jain 191105 7 Ankita Sehjpal 191076 3 Gaurav Gulecha 191085 8 Kulvir Singh Gill 191092 4 Tanya Malik 191119 9 Abhijeet Sharma 191062 5 Vivek Mandowara 191121 10 Pankaj Kakkar 191102 1
  2. 2. Table of ContentsTHE PREVENTION OF CORRUPTION ACT, 1988 ....................................................................................... 7 Introduction ........................................................................................................................................ 7 Genesis ................................................................................................................................................ 7 The Prevention Of Corruption Act, 1988 ............................................................................................ 7 Sec 2: Definations............................................................................................................................ 7 Who Is A Public Servant? ................................................................................................................ 8 Sec 3: Power to Appoint Special Judges.......................................................................................... 9 Sec 4: Cases Triable By Special Judges .......................................................................................... 10 Sec 5: Power & Function of Special Judges ................................................................................... 10 Sec 6: Power to Try Summarily ..................................................................................................... 11 Offences and Penalties (SECTION 7 – 16) ..................................................................................... 12 Investigation (SECTIONS 17 – 31).................................................................................................. 17 Conclusion ......................................................................................................................................... 19COMMON WEALTH GAMES SCAM ....................................................................................................... 20 CWG Background .............................................................................................................................. 21 CWG XIX New Delhi........................................................................................................................... 21 How Delhi Got It - Bidding............................................................................................................. 22 Organizing Committee .................................................................................................................. 22 Key Stakeholders ........................................................................................................................... 24 Objectives of OC............................................................................................................................ 24 Vision, Mission & Values ............................................................................................................... 25 Costs .................................................................................................................................................. 26 Timeline of CWG ............................................................................................................................... 26 CWG Scam Irregularity ...................................................................................................................... 32 Labor Law Violations ..................................................................................................................... 34 CAG Report........................................................................................................................................ 35 Legal Cases against CWG Committee ............................................................................................... 36 Parties Involved................................................................................................................................. 38 Politicians Involved ....................................................................................................................... 38 Bureaucrats Involved .................................................................................................................... 38 Corporations Involved ................................................................................................................... 38 Businessmen Involved................................................................................................................... 39 Whistleblowers/ Law Enforcers .................................................................................................... 39 2
  3. 3. Scams ................................................................................................................................................ 39 Time Scoring Results System......................................................................................................... 39 Queens Baton Relay ...................................................................................................................... 39 Broadcast Network ....................................................................................................................... 40 Recruitment to Organising Committee ......................................................................................... 40 CNN-IBN NDTV Hindustan Times ...................................................................................................... 41 Response to Scam ............................................................................................................................. 41 CWG Impact ...................................................................................................................................... 42 Socio Economic Impact ................................................................................................................. 43 Organizational Failure ................................................................................................................... 45 Racism Allegation .......................................................................................................................... 47 Infrastructure Issue ....................................................................................................................... 48 Vandalism in games village by Athletes ........................................................................................ 49 Infrastructural compromise ............................................................................................... 50 Terror threats ...................................................................................................................... 51 Fear of dengue outbreak ........................................................................................................... 52 Illness ........................................................................................................................................... 52 Sporting Controversy ........................................................................................................................ 53 Doping ........................................................................................................................................... 53 Archery .......................................................................................................................................... 53 Boxing............................................................................................................................................ 54 Cycling ........................................................................................................................................... 54 Swimming...................................................................................................................................... 54 Wrestling ....................................................................................................................................... 55 Kalmadi: A Culprit or Victim? ............................................................................................................ 55 Effect on Brand Image of India ......................................................................................................... 58 CAG Audit Report Key Points ............................................................................................................ 59 Suggestions & Recommendations .................................................................................................... 60 Conclusion ......................................................................................................................................... 612G SCAM ............................................................................................................................................... 62 2G Timeline ....................................................................................................................................... 62 Oct 29, 2010: SC pulls up CBI for its tardy progress in the investigations into the scam ................. 74 Spectrum and Its Relation With Mobile Phone Services ................................................................ 118 2G And 3G Spectrum....................................................................................................................... 118 3
  4. 4. How the Telecom Operation Is Administered ................................................................................ 119FCFS Policy ...................................................................................................................................... 119Understanding 2G Spectrum Scam ................................................................................................. 119Role of the Former Telecom Minister A Raja In The Scam ............................................................. 120Senior Officers Involved In This Scam ............................................................................................. 122Relation Between The 2G Spectrum Scam And The Radia Tapes ................................................... 122Role Of The Finance Minister In This Scam ..................................................................................... 122Who Estimated the Loss of Rs 1, 76,000 Crore ............................................................................... 122Bodies Which Brought Out This Scam in The Public Domain.......................................................... 123Role of The Investigative Agencies CBI, ED In This Scam ................................................................ 123What Supreme Court Said About This Scam ................................................................................... 123Action Taken By Government Taken Till Now ................................................................................ 124What Did the Government Do To Cover Up This Scam .................................................................. 124Arrests Made In This Scam .............................................................................................................. 124Companies Being Investigated ........................................................................................................ 125Changes in the Telecommunications Sector In India ...................................................................... 125Gaps in Policy Implementation ....................................................................................................... 125 Telecom Commission Was Not Consulted .................................................................................. 126 Views and Concerns Of Ministry Of Finance Overruled.............................................................. 126 Advice of Ministry Of Law And Justice Were Ignored ................................................................. 127 Honble Prime Ministers Suggestions Were Not Followed ........................................................ 127 Arbitrary Changes By Dot In The Cut-Off Date. .......................................................................... 128 FCFS Policy Was Not Followed .................................................................................................... 128Issue of License to Ineligible Applicants ......................................................................................... 129Growth In Telecom Sector .............................................................................................................. 130Overview of Policies ........................................................................................................................ 130Methodology for Entry And Fee Structure In Various Policy Regimes ........................................... 132Role of Telecom Regulatory Authority Of India (TRAI) ................................................................... 134Organizational Arrangement .......................................................................................................... 135Issue of Licenses.............................................................................................................................. 135Spectrum Allocation........................................................................................................................ 136Gaps in Implementation Of UAS Regime ........................................................................................ 140Issue of Price Discovery Of Spectrum Was Over Looked ................................................................ 145Issue of UAS Licence to Ineligible Applicants .................................................................................. 148 4
  5. 5. Misrepresentation of Facts By The Nine Real Estate Companies ............................................... 150 False and Fictitious Claims Of Higher Paid Up Capital By 13 Companies.................................... 151 Access to Dual Technology.......................................................................................................... 152 Undue Benefits to Reliance Communications Limited ............................................................... 152 Violation of 2003 Cabinet Decision to Allow Additional Spectrum at 2001 Prices ..................... 154 Undue Advantage to Swan Telecom Pvt. Ltd in The Allocation Of Spectrum ............................ 154 Value of Spectrum Allocated Beyond the Contracted Quantity ................................................. 155 Non Fulfillment of the Roll out Obligations by the New Telecom Licensees .............................. 155 Financial Impact .............................................................................................................................. 156 Under Pricing Of 2G and Consequent Loss ................................................................................. 156 Conclusions ..................................................................................................................................... 158RIGHT TO INFORMATION ACT, 2005................................................................................................... 159 Introduction .................................................................................................................................... 159 Freedom of Information Act, 2002 ................................................................................................. 159 State Level Laws .............................................................................................................................. 160 Scope ............................................................................................................................................... 160 Private Bodies ................................................................................................................................. 160 Right to Information ....................................................................................................................... 161 Process ........................................................................................................................................ 161 Partial Disclosure ........................................................................................................................ 162 Exclusions .................................................................................................................................... 162 Information Exclusions................................................................................................................ 163 Role of Government........................................................................................................................ 164 Effects.......................................................................................................................................... 164CASE STUDY: CBSE vs. ADITYA BANDOPADHYAY & OTHERS .............................................................. 166 Case Notes: ..................................................................................................................................... 167 The Case .......................................................................................................................................... 170 Aditya Bandhopadhyay’s Petition ................................................................................................... 170 CBSE’s Defense................................................................................................................................ 172 Evaluation Method Adopted By CBSE ............................................................................................. 173 Questions to Be Considered ........................................................................................................... 176 Relevant Legal Provisions................................................................................................................ 177 Exemption from Disclosure from Information (Section 8).......................................................... 178 Answers to the Questions ............................................................................................................... 182 5
  6. 6. Answer To Q1. ............................................................................................................................. 182 Answer To Q2. ............................................................................................................................. 185 Answer To Q3. ............................................................................................................................. 186 Answer To Q4. ............................................................................................................................. 191Conclusion - Judgment .................................................................................................................... 197 6
  7. 7. THE PREVENTION OF CORRUPTION ACT, 1988Introduction"If we cannot make India corruption-free, then the vision of making the nationdevelop by 2020 would remain as a dream." - Dr. A.P.J.Abdul KalamCorruption is considered to be one of the greatest impediments on the way towardsprogress for developing country like India. The economic, social and culturalstructure of our country is very strong; however, due to the menace called-Corruption, it has been adversely affected and has become defenceless against theforces of anti-social elements.According to Shri N.Vittal, Former Chief Vigilance Commissioner, the first stage inthe dynamics of the rule of law is the framing of effective rules and laws, which areequipped to hinder the ever-rising escalation of the corruption graph. It is in thiscontext that the Prevention of Corruption Act, 1988 becomes highly significant.GenesisThe Prevention of Corruption Act, 1988 (henceforth referred to as PCA) came intoforce on 9th September, 1988. it incorporated the Prevention of Corruption Act,1947, the Criminal Law Amendment Act, 1952, and sec. 161 to 165-A of the IndianPenal Code with modifications, enlarged the scope of the definition of the expressionPublic Servant and amended the Criminal Law Amendment Ordinanc,k1944. ThePCA, 1988l, thereby widened the coverage, strengthened the provisions and madethem more effective.The Prevention Of Corruption Act, 1988Sec 2: DefinationsThe most important definitions are that of:- Public duty- Public servantPublic Duty: It means a duty that is dine for the benefit of the State, the public or thecommunity at a large. In this context, State would mean: 7
  8. 8. a) A corporation established by or under a Central, Provincial or State Act.b) An authority or a body owned controlled or aided by the Government Company asdefined in Sec. 617 of the Companies Act, 1956.Public Servant: It is unique term in Anti-corruption law, being the deciding factor atthe threshold, of ones liability, depending on his being public servant. The termPublic Servant was not defined under the PCA, 1947 and the Act adopted thedefinition of the term under sec. 21 of the Indian Penal Code. The PCA of 1988provides a wider definition in the Act itself under clause (c) of sec. 2. The followingare the salient aspects of the new definition:a) Under clause (c) of Sec.2 of the PC, the emphasis is on public duty and not on theAuthority remunerating.b) The definition is enlarged so as to include the office-bearers of the registered co-operative societies receiving any financial aid from the Government, or from aGovernment corporation or company, the employees of universities, public servicecommissions and banks etc.Who Is A Public Servant?a) Any person who is paid by the government or local authority or remunerated byway of fees or commission for the performance of or is in the service of a corporationestablished by or under a Central, Provincial or State Act, or an authority or bodyowned or controlled or aided by the Government company as defined in theCompanies Act, 1956.b) Any Judge or any person authorized by a court of justice to perform any duty, inconnection with the administration of justice or any arbitrator to whom any cause ormatter has been referred for decision or report by a court of justice or report by acourt of justice or by a competent public authority. 8
  9. 9. c) Any person who holds an office result to which he is empowered to prepare,publish maintain or revise an electoral roll or to conduct an election or part of anelection, or is authorized or required to perform any public duty.d) Any person who is the president, secretary or other office bearer of a registeredco-operative society engaged in agriculture, industry, trade or banking, receiving orhaving received any financial aid from the Central or State Government or anyauthority or body owned, controlled or aided by Government or Governmentcompany as defined in Sec. 617 of the Companies Act, 1956.e) Any person who is a chairman, member or employee of any service commissionor Board or a member of any selection committee appointed by such Commission orBoard for the conduct of any examination or making any selection on their behalf.f) Any person who is the Vice-Chancellor or member of any governing body,professor, reader or lecturer of any University and any person whose services havebeen availed of by a University.g) An office-bearer or an employee of an educational, scientific, social, cultural orother institution receiving or having received any financial assistance from theCentral or State government or local or other public authority.Explanation 1 states that it is immaterial whether the person falling within theperiphery of the above clauses is appointed by Government or not.Explanation 2 states that a person who is actually holding the position of the situationof public servant irrespective of the fact that he might not have th3e right to hold thatsituation shall be deemed to be public servant.Sec 3: Power to Appoint Special JudgesThe Central and the State Government is empowered to appoint Special Judges byplacing a Notification in the Official Gazette, to try the following offences:- Any offence punishable under this Act. 9
  10. 10. - Any conspiracy to commit or any attempt to commit or any abetment of any of theoffences specified under the Act.The qualification for the Special Judge is that he should be or should have been aSession Judge or an Additional Session Judge or Assistant Session Judge under theCode of Criminal Procedure, 1973Sec 4: Cases Triable By Special JudgesEvery offence mentioned in Section 3(1) shall be tried by the Special Judge for thearea within which it was committed. When trying any case, a Special Judge may alsotry any offence other than what is specified in S. 3, which the accused may be, underCr.P.C. be charged at the same trial. The Special Judge has to hold the trial of anoffence on day-to-day basis. However, while complying with foretasted, it is to beseen that the Cr.P.C. is not bifurcated.Sec 5: Power & Function of Special JudgesThe following are the powers of the Special Judge:He may take cognizance of the offences without the accused being commissioned tohim for trial. In trying the accused persons, shall follow the procedure prescribed bythe Cr.P.C. for the trial of warrant cases by Magistrate, he may with a view to obtainthe evidence of any person supposed to have been directly or indirectly concerned inor privy to an offence, tender pardon to such person provided that he would make fulland true disclosure of the whole circumstances within his knowledge or in respect toany person related to the offence.Except as for S. 2(1), the provisions of Cr.P.C. shall apply to the proceedings beforea Special Judge. Hence, the court of the Special Judge shall be deemed to be aCourt of Session and the person conducting a prosecution before a Special Judgeshall be deemed to be a public prosecutor.The provisions of sections 326 and 475 of the Cr.P.C. shall apply to the proceedingsbefore a Special Judge and for purpose of the said provisions, a Special Judge shallbe deemed to be a magistrate. 10
  11. 11. A Special Judge may pass a sentence authorized by law for the punishment of theoffence of which a person is convicted. A Special Judge, while trying any offencepunishable under the Act, shall exercise all powers and functions exercised by aDistrict Judge under the Criminal Law Amendment Ordinance, 1944.Sec 6: Power to Try SummarilyWhere a Special Judge tries any offence specified in Sec. 3(1), alleged to have beencommitted by a public servant in relation to the contravention of any special orderreferred to in Sec.12-A(1) of the Essential Commodities Act, 1955 or all ordersreferred to in sub-section (2)(a) of that section then the special judge shall try theoffence in a summarily way and the provisions of s. 262 to 265 (both inclusive) of thesaid code shall as far as may be apply to such trial. Provided that in the case of anyconviction in a summary trial under this section this shall be lawful for the SpecialJudge to pass a sentence of imprisonment for a term not exceeding one year.However, when at the commencement of or in the course of a summary trial itappears to the Special Judge that the nature of the case is such that a sentence ofimprisonment for a term exceeding one year may have to be passed or it isundesirable to try the case summarily, the Special judge shall record all order to thateffect and thereafter recall any witnesses who may have been examined andproceed to hear and re-hear the case in accordance with the procedure prescribedby the said code for the trial of warrant cases by Magistrates. Moreover, there shallbe no appeal by a convicted person in any case tried summarily under this section inwhich the Special Judge passes a sentence of imprisonment not exceeding onemonth and of fine not exceeding Rs. 2000. 11
  12. 12. Offences and Penalties (SECTION 7 – 16)Sec 7: Public servant taking gratification other than legal remuneration in respect of anofficial actWhoever, being, or expecting to be a public servant, accepts or obtains or agrees toaccept or attempts to obtain from any person, for himself or for any other person, anygratification whatever, other than legal remuneration, as a motive or reward for doingor forbearing to do any official act or for showing or forbearing to show, in theexercise of his official functions, favour or disfavour to any person or for rendering orattempting to render any service or disservice to any person, with the CentralGovernment or any State Government or Parliament or the Legislature of any Stateor with any local authority, corporation or Government company referred to in clause(c) of section 2, or with any public servant, whether named or otherwise, shall bepunishable with imprisonment which shall be not less than six months but which mayextend to five years and shall also be liable to fine.Explanations(a) "Expecting to be a public servant." If a person not expecting to be in officeobtains a gratification by deceiving others into a belief that he is about to be in office,and that he will then serve them, he may be guilty of cheating, but he is not guilty ofthe offence defined in this section.(b) "Gratification." The word "gratification" is not restricted to pecuniary gratificationsor to gratifications estimable in money.(c) "Legal remuneration." The words "legal remuneration" are not restricted toremuneration which a public servant can lawfully demand, but include allremuneration which he is permitted by the Government or the organisation, which heserves, to accept.(d) "A motive or reward for doing." A person who receives a gratification as a motiveor reward for doing what he does not intend or is not in a position to do, or has notdone, comes within this expression. 12
  13. 13. (e) Where a public servant induces a person erroneously to believe that his influencewith the Government has obtained a title for that person and thus induces thatperson to give the public servant, money or any other gratification as a reward forthis service, the public servant has committed an offence under this section.Sec 8: Taking gratification, in order, by corrupt or illegal means, to influence public servantWhoever accepts or obtains, or agrees to accept, or attempts to obtain, from anyperson, for himself or for any other person, any gratification whatever as a motive orreward for inducing, by corrupt or illegal means, any public servant, whether namedor otherwise, to do or to forbear to do any official act, or in the exercise of the officialfunctions of such public servant to show favour or disfavour to any person, or torender or attempt to render any service or disservice to any person with the CentralGovernment or any State Government or Parliament or the Legislature of any Stateor with any local authority, corporation or Government company referred to in clause(c) of section 2, or with any public servant, whether named or otherwise, shall bepunishable with imprisonment for a term which shall be not less than six months butwhich may extend to five years and shall also be liable to fine.Sec 9: Taking gratification, for exercise of personal influence with public servantWhoever accepts or obtains or agrees to accept or attempts to obtain, from anyperson, for himself or for any other person, any gratification whatever, as a motive orreward for inducing, by the exercise of personal influence, any public servantwhether named or otherwise to do or to forbear to do any official act, or in theexercise of the official functions of such public servant to show favour or disfavour toany person, or to render or attempt to render any service or disservice to any personwith the Central Government or any State Government or Parliament or theLegislature of any State or with any local authority, corporation or Governmentcompany referred to in clause (c) of section 2, or with any public servant, whethernamed or otherwise, shall be punishable with imprisonment for a term which shall benot less than six months but which may extend. to five years and shall also be liableto fine. 13
  14. 14. Sec 10: Punishment for abetment by public servant of offences defined in section 8 or 9Whoever, being a public servant, in respect of whom either of the offences defined insection 8 or section 9 is committed, abets the offence, whether or not that offence iscommitted in consequence of that abetment, shall be punishable with imprisonmentfor a term which shall be not less than six months but which may extend to five yearsand shall also be liable to fine.Sec 11: Public servant obtaining valuable thing, without consideration from personconcerned in proceeding or business transacted by such public servantWhoever, being a public servant, accepts or obtains or agrees to accept or attemptsto obtain for himself, or for any other person, any valuable thing withoutconsideration, or for a consideration which he knows to be inadequate, from anyperson whom he knows to have been, or to be, or to be likely to be concerned in anyproceeding or business transacted or about to be transacted by such public servant,or having any connection with the official functions of himself or of any public servantto whom he is subordinate, or from any person whom he knows to be interested in orrelated to the person so concerned, shall be punishable with imprisonment for a termwhich shall be not less than six months but which may extend to five years and shallalso be liable to fine.Sec 12: Punishment for abetment of offences defined in section 7 or 11Whoever abets any offence punishable under section 7 or section 11 whether or notthat offence is committed in consequence of that abetment, shall be punishable withimprisonment for a term which shall be not less than six months but which mayextend to five years and shall also be liable to fine.Sec 13: Criminal misconduct by a public servant(1) A public servant is said to commit the offence of criminal misconduct,-(a) if he habitually accepts or obtains or agrees to accept or attempts to obtain fromany person for himself or for any other person any gratification other than legalremuneration as a motive or reward such as is mentioned in section 7; or 14
  15. 15. (b) if he habitually accepts or obtains or agrees to accept or attempts to obtain forhimself or for any other person, any valuable thing without consideration or for aconsideration which he knows to be inadequate from any person whom he knows tohave been, or to be, or to be likely to be concerned in any proceeding or businesstransacted or about to be transacted by him, or having any connection with theofficial functions of himself or of any public servant to whom he is subordinate, orfrom any person whom he knows to be interested in or related to the person soconcerned; or(c) if he dishonestly or fraudulently misappropriates or otherwise converts for his ownuse any property entrusted to him or under his control as a public servant or allowsany other person so to do; or(d) If he,-(i) By corrupt or illegal means, obtains for himself or for any other person anyvaluable thing or pecuniary advantage; or(ii) By abusing his position as a public servant, obtains for himself or for any otherperson any valuable thing or pecuniary advantage; or(iii) While holding office as a public servant, obtains for any person any valuablething or pecuniary advantage without any public interest; or(e) if he or any person on his behalf, is in possession or has, at any time during theperiod of his office, been in possession for which the public servant cannotsatisfactorily account, of pecuniary resources or property disproportionate to hisknown sources of income.ExplanationFor the purposes of this section, "known sources of income" means income receivedfrom any lawful source and such receipt has been intimated in accordance with the 15
  16. 16. provisions of any law, rules or orders for the time being applicable to a publicservant.(2) Any public servant who commits criminal misconduct shall be punishable withimprisonment for a term which shall be not less than one year but which may extendto seven years and shall also be liable to fine.Sec 14: Habitual committing of offence under sections 8, 9 and 12Whoever habitually commits-(a) An offence punishable under section 8 or section 9; or(b) An offence punishable under section 12,shall be punishable with imprisonment for a term which shall be not less than twoyears but which may extend to seven years and shall also be liable to fine.Sec 15: Punishment for attemptWhoever attempts to commit an offence referred to in clause (c) or clause (d) of sub-section (1) of section 13 shall be punishable with imprisonment for a term which mayextend to three years and with fine.Sec 16: Matters to be taken into consideration for fixing fineWhere a sentence of fine is imposed, under sub-section (2) of section 13 or section14, the court in fixing the amount of the fine shall taken into consideration theamount or the value of the property, if any, which the accused person has obtainedby committing the offence or where the conviction is for an offence referred to inclause (e) of sub-section (1) of section 13, the pecuniary resources or propertyreferred to in that clause for which the accused person is unable to accountsatisfactorily. 16
  17. 17. Investigation (SECTIONS 17 – 31)Sec 17: Persons authorized to investigateInvestigation shall be done by a police officer not below the rank of:a] In case of Delhi, of an Inspector of Police.b] In metropolitan areas, of an Assistant Commissioner of Police.c] Elsewhere, of a Deputy Superintendent of Police or an officer of equivalent rankshall investigate any offence punishable under this Act without the order of aMetropolitan Magistrate or a magistrate of first class, or make any arrest thereforewithout a warrant.If a police officer no below the rank of an Inspector of Police is authorized by theState Government in this behalf by general or special order, he may investigate suchoffence without the order of a Metropolitan Magistrate or Magistrate of First class ormake arrest therefore without a warrant.Sec 19: Previous SanctionsPrevious sanction is required in following cases:When an offence is punishable under sections 7,10,11,13 and 15 of the Act,In case of a person who is employed in connection with the affairs of the Union orState and is not removable from his office save by or with the sanction of the Centralor State Government as the case may be. In case of any other person, of authoritycompetent to remove him from his office.Previous sanction is required; if the court feels that a failure has occurred in theadministration of justice, to do the following:Reversal or alteration by the Court of Appeal of any findings, or any sentence ororder passed by a Special Judge. stay the proceedings on the ground of error,omission or irregularity. Revision of any interlocutory order passed in inquiry, trial,appeal or proceedings. 17
  18. 18. Sec 21: Accused: A Competent WitnessAny person charged with an offence punishable under this Act, shall be a competentwitness for the defence and may give evidence on oath in disproof of the chargesmade against him or any person charged together with him at the same trial:Provided that-(a) He shall not be called as a witness except at his own request;(b) His failure to give evidence shall not be made the subject of any comment by theprosecution or give rise to any presumption against himself or any person chargedtogether with him at the same trial;(c) He shall not be asked, and if asked shall not be required to answer, any questiontending to show that he has committed or been convicted of any offence other thanthe offence with which he is charged, or is of bad character, unless-(i) The proof that he has committed or been convicted of such offence is admissibleevidence to show that he is guilty of the offence with which he is charged, or(ii) He has personally or by his pleader asked any question of any witness for theprosecution with a view to establish his own good character, or has given evidenceof his good character, or the nature or conduct of the defence is such as to involveamputations on the character of the prosecutor or of any witness for the prosecution,or(iii) He has given evidence against any other person charged with the same offence.Sec 27: Appeal And RevisionThe High Court has given all power of appeal and revision that are provided to itthrough Cr.P.C. as if the Court of Special Judge were a Court of Session tryingcases within the local limits of the High Court. 18
  19. 19. ConclusionCorruption is a termite that is eating up the pith of our society it not only hampers theindividuals growth but also the collective growth of our Country. Hence, it standshighly imperative to control and then stop this growing menace and in this case thePrevention of Corruption Act, 1988 comes to our aid. In fact, the Act has beenbeautifully drafted; however, a huge power has been vested in the hands of theCentral and State Government in form of appointment of Special Judges, providingsanctions etc. Hence the Act would become oblivious if the matter in question isrelated to Central or State Governments. The PCA despite of this lacuna is a verypowerful Act which needs proper implementation in order to curb corruption fromgrass root-level. 19
  20. 20. COMMON WEALTH GAMES SCAM 20
  21. 21. CWG BackgroundThe Commonwealth Games is an international, multi-sport event involving athletesfrom the Commonwealth of Nations. The event was first held in 1930 and takesplace every four years.It was initially known as the British Empire Games and was renamed to the BritishEmpire and Commonwealth Games in 1954 and the British Commonwealth Gamesin 1970, before finally gaining its current title for the 1978 edition. The Games areoverseen by the Commonwealth Games Federation (CGF), which also controls thesporting programme and selects the host cities. A host city is selected for eachedition and eighteen cities in seven countries have hosted the event.As well as many Olympic sports, the Games also include some sports that areplayed mainly in Commonwealth countries, such as lawn bowls, rugby sevens andnetball.[1] Only six teams have attended every Commonwealth Games: Australia,Canada, England, New Zealand, Scotland and Wales. Australia has been thehighest achieving team for eleven games, England for seven and Canada for one.Although there are 54 members of the Commonwealth of Nations, 71 teamsparticipate in the Commonwealth Games as a number of British overseas territories,Crown dependencies, and island states compete under their own flag. The fourHome Nations of the United Kingdom – England, Scotland, Wales and NorthernIreland – also send separate teams.CWG XIX New DelhiThe 2010 Commonwealth Games, officially known as the XIX CommonwealthGames, were held in Delhi, India, from 3 to 14 October 2010. A total of 6,081athletes from 71 Commonwealth nations and dependencies competed in 21 sportsand 272 events, making it the largest Commonwealth Games till date. It was also thelargest international multi-sport event to be staged in Delhi and India, eclipsing theAsian Games in 1951 and 1982. The opening and closing ceremonies were held atthe Jawaharlal Nehru Stadium, the main stadium of the event. It was the first timethat the Commonwealth Games were held in India and the second time it was held inAsia after Kuala Lumpur, Malaysia in 1998. The official mascot of the Games wasShera and the official song of the Games, "Jiyo Utho Bado Jeeto", was composed bycelebrated Indian musician A.R. Rahman. 21
  22. 22. Preparation for the Games received widespread international media attention, withcriticism being leveled against the organizers for the slow pace of work, as well asissues related to security and hygiene. However, all member nations of theCommonwealth of Nations participated in the event, except Fiji, which is suspendedfrom the Commonwealth, and Tokelau, which didnt send a team, in spite of threatsof boycotts and athlete withdrawals. The internationally acclaimed opening ceremonyimproved the image of the Games, and dispelled negative notions surrounding them,with many observers remarking that they began on an apprehensive note, but werean exceptional experience with a largely positive ending. The President of theInternational Olympic Committee, Jacques Rogge, said that India had made a goodfoundation for a future Olympics bid, which was reiterated by the Australian Ministryof Sports. Commonwealth games Federation Chief Mike Fennell stated that "Delhidelivered a fantastic Games". Some observers accused sections of the media ofbias, unfair expectations, and negative reporting.The final medal tally was led by Australia. The host nation India had its bestperformance ever to finish second.How Delhi Got It - BiddingThe two principal bids for the 2010 Commonwealth Games were from Delhi, Indiaand Hamilton, Ontario, Canada. A ballot of members was held in November 2003 atthe Commonwealth Games Federation General Assembly in Montego Bay, Jamaica.Delhi bid won by a margin of 46 votes to 22, confirming Indias first successful bid forthe Games. The bid was Canadas attempt to hold the games for the fifth time.Indias bid motto was - ―New Frontiers and Friendships‖.India shifted the balance in its favor in the second round of voting with a promise thatit would provide US$100,000 to each participating country, along with air tickets,boarding, lodging and transport. The successful 2003 Afro-Asian Games inHyderabad showed India had the resources, infrastructure and technical know-howto stage a big sporting event.Organizing CommitteeThe Organizing Committee Commonwealth Games 2010 Delhi (OC CWG Delhi2010) is organized into distinct Functional Areas, each relates to an area critical tothe successful delivery of the Games. A Functional Area or a cluster of related 22
  23. 23. Functional Areas is headed by a Joint Director General (JDG) or an AdditionalDirector General supported by Deputy Director Generals, Advisors, Directors, ProjectOfficers, Assistant Project Officers, Administrative Assistant and Support Staff. Atotal of 36 Functional Areas are envisaged in the General Operational Plan (GOP) ofthe OC CWG Delhi 2010.The OC CWG Delhi 2010 is structured along the following working groups: OC CWG Delhi 2010 General Body Executive Board Executive Management Assurance Sub-committees Secretariat Functional Areas Expert Groups & Consultants 23
  24. 24. Key StakeholdersThe Host City Contract identifies and binds the five key stakeholders who areresponsible for the successful delivery of the XIX Commonwealth Games 2010Delhi. It is incumbent upon these stakeholders to undertake all measures, includingadequate financial provisions, to deliver the Games in the most befitting mannerwithin the framework of the Constitution, Protocol and Guidelines of theCommonwealth Games Federation (CGF). The key delivery partners are: Commonwealth Games Federation (CGF); Indian Olympic Association (IOA); Organizing Committee (OC); Government of the National Capital Territory of Delhi (GNCTD); Government of India (GoI).Objectives of OC Prepare for, organize and conduct the XIX Commonwealth Games 2010 Delhi in the National Capital Region (NCR) of Delhi; Prepare for, organize and conduct other events (including sports and cultural activities and festivals) as part of the XIX Commonwealth Games 2010 Delhi including the Commonwealth Youth Games; Promote all such activities that may be useful, necessary or helpful and which contribute towards the conduct of the XIX Commonwealth Games 2010 Delhi; Conduct XIX Commonwealth Games 2010 Delhi in a manner that would encourage sports development and physical recreation and promote the shared values of integrity, fair play, competence, team work, commitment to excellence, respect for gender equality and tolerance including the fight against the use of drugs and unhealthy or performance enhancing substances; Advise all offices, institutions, government and other bodies of associations that may be associated with the holding of the XIX Commonwealth Games 2010 Delhi; Decide on all matters connected with the preparations and holding of the XIX Commonwealth Games 2010 Delhi and bringing it to a successful completion; and 24
  25. 25. Do all such lawful things that are incidental or conducive to the attainment of the above objectives or of any of them.Vision, Mission & ValuesVisionThe vision of the Organizing Committee Commonwealth Games 2010 Delhi is toinculcate sports consciousness and culture in every Indian.Mission Deliver the ‗Best Commonwealth Games Ever‘ Build state-of-the-art sporting and city infrastructure for the facilitation of the Games Create a suitable environment and opportunities for the involvement of the citizens in the Games Showcase the culture and heritage of India Project Delhi as a global destination Project India as an economic power Leave behind a lasting legacyValuesIn fulfilling its mission, the OC CWG Delhi 2010 will exhibit and abide by the followingvalues in its day-to- day operations: Sportsmanship Integrity Excellence Solidarity Diversity Competence Transparency Discipline 25
  26. 26. CostsThe initial total budget estimated by the Indian Olympic Association in 2003 forhosting the Games was 1,620 crore (US$328.54 million). In 2010, however, theofficial total budget soon escalated to an estimated 11,500 crore (US$2.33 billion), afigure which excluded non-sports-related infrastructure development. BusinessToday magazine estimated that the Games cost 60,000 crore (US$12.17 billion).The 2010 Commonwealth Games are reportedly the most expensive CommonwealthGames ever.That is 114 times more than the estimated original price tag of the Games, and fourtimes what the government spends on the National Rural Health Mission every year.Timeline of CWGIn the run-up to the 3 October -14 October Games, the event which should havehighlighted India as an emerging global power threatened to turn into a nationalembarrassment.Following is a timeline of events*********************22 September 2010 | Several big name athletes have pulled out of theCommonwealth Games citing security and health worries, adding to woes of an 26
  27. 27. event meant to showcase India‘s ability to stand up with the likes of China on theworld stage.21 September 2010 | The Commonwealth Games Federation (CGF) has given theorganizing committee two days to fix the facilities at the village even as the PrimeMinister‘s Office (PMO) intervened to demand an explanation from all concernedagencies.21 September 2010 | A footbridge under construction at the main stadium forthe Delhi Commonwealth Games collapsed on Tuesday, injuring up to six laborers,an AFP reporter and police said.21 September 2010 | Piling on the embarrassment for the organizers,Commonwealth Games Federation chief executive Mike Hooper on Tuesday termedthe Athletes Village as ―filthy and uninhabitable‖ but hoped that with CommonwealthGames Federation president Michael Fennell‘s intervention, the mess would besorted out in the next two days.20 September 2010 | The Commonwealth Games will be safe, organizers insistedMonday after a weekend gun attack sparked new security fears as the city gears upto host thousands of athletes.16 September 2010 | Beset by stories of corruption, a dengue epidemic and leakingroofs of stadia, Commonwealth Games authorities showed off new venues in the 27
  28. 28. face of a Workers clear the debris from a pedestrian bridge that collapsed outsideJawaharlal Nehru stadium, the main venue for the Commonwealth Games, in NewDelhi on Tuesday. Storm of media criticism amid worries the Games, a showcase forthis emerging global giant, could be a disaster.08 September 2010 | Just a week left for an international team to fly in for a finalinspection and the Commonwealth Games Village still looks like an island in theYamuna. Unable to drain the rainwater that has collected, which is breedingmosquitoes, a desperate Delhi government has decided to call in the army.20 August 2010 | All allegations of corruption against Delhi Commonwealth Gamesorganizers should be probed, CGF chief Mike Fennell said as he wrapped up a two-day inspection of the venues by identifying some areas of concern which need to beaddressed immediately.19 August 2010 Two state-run firms have withdrawn their sponsorship of the DelhiCommonwealth Games due to ―negative publicity‖ of the event stemming fromallegations of graft and mismanagement.14 August 2010 | Against the backdrop of a spate of controversies surrounding theCommonwealth Games (CWG), Prime Minister Manmohan Singh will hold a meetingwith the ministers concerned on Saturday evening to review preparations for themega event to be held in October.10 August 2010 | Mint deviates from the scandals emerging on an almost dailybasis to look at ten things that need to be completed to ensure the Commonwealthgames will be held at all.06 August 2010 | Suresh Kalmadi, the man at the centre of the controversiessurrounding the Commonwealth Games (CWG) survived to fight another day, butthree of his aides were suspended by the Games‘ organizing committee (OC).06 August 2010 | From leaking venue roofs to inflated orders of taxis and mobiletoilets, rows over New Delhi‘s Commonwealth Games have prompted Indian soul-searching and piled pressure on the embattled ruling Congress party. 28
  29. 29. 03 August 2010 | The Commonwealth Games seem to be sinking deeper into thequagmire as reports of corruption, faked certificates and unending constructiondelays become rife.03 August 2010 | The growing allegations about the mismanagement of funds bythe organizers of the Commonwealth Games provided ready ammunition to theopposition parties in Parliament as they trained their guns on the ruling Congress.02 August 2010 | The government‘s plans to create a sizeable cushion to tide overany power shortage that could arise during the Commonwealth Games (CWG)suffered a setback following a delay in commissioning two proposed units of 500MWeach.28 July 2010 | The spiraling expenditure on the Commonwealth Games implies aheavy opportunity cost, while the benefit will only be a few moments in the limelight.28 July 2010 | The Congress has disapproved of the public sparring between ManiShankar Aiyar and Suresh Kalmadi over the Commonwealth Games, saying seniorleaders of the party should speak responsibly when they reply to any issue in public.22 July 2010 | The organizing committee of the Commonwealth Games (CWG) hasfloated 19 tenders for which the bidding deadline varies from as few as two days to amaximum of 21 days.20 July 2010 | India aims the Commonwealth Games will be a showcase of itseconomic clout, but with less than three months to go, the world‘s third largestsporting event is instead laying bare its perennial infrastructure problems.23 march 2010 | Delhi‘s Congress government has, citing a law that bans the sale ofbeef in the city-state, said it wouldn‘t be on offer to athletes and support staff duringthe Games, according to Raj Kumar Chauhan, minister for revenue and the publicworks department. Hindus consider the cow to be a holy animal.04 march 2010 | The government has reinstated Sanjiv Mittal, a financial expert whowas ousted from the Commonwealth Games (CWG) organizing committee by itschairman Suresh Kalmadi almost a fortnight back in what was perceived at the timeas a snub to the Prime Minister‘s Office (PMO). 29
  30. 30. 18 February 2010 | With less than 230 days left for the Commonwealth Games(CWG), an internal audit by the organizing committee in the first week of Februaryrevealed that none of the key logistics such as security, accommodation andtransport to move officials as well as athletes have been completed by the 16February deadline.15 February 2010 | A delay of nearly four months in reaching a decision appears tohave almost jeopardized the international broadcasting, security and data networksof 2010 Delhi Commonwealth Games (CWG).13 February 2010 | In five police stations across Delhi, batches of 50 policemen--constables through inspectors--go through their classes in a day-and-a-half; with 16such batches per police station, which translates into 4,000 policemen per month.05 January 2010 | Delhi‘s chief minister is nervous about the hosting ofCommonwealth Games in the capital but the event‘s Organising Committee headSuresh Kalmadi assures that all is well with the preparations despite umpteendelays.26 November 2009 | Where there‘s a few million dollars of expenditure, there‘susually an economic study pondering how the money was spent. This is particularlytrue of big-ticket sporting events such as the Olympic or Commonwealth Games.Even as the cost of hosting the Olympics touched a dizzying $40 billion in Beijing lastyear—more than the entire gross domestic product of Sri Lanka—the literature onthe economic effects of such games has grown. Most scholars see only negativeeconomic benefits to hosting these events. From past studies, Mint culls five keyconclusions and transplants the benefit of their hindsight into Delhi‘s preparations forthe Games.16 November 2009 | With less than a year left, work is being accelerated on Gamesvenues and city infrastructure, but for construction workers it hasn‘t meant boomtimes.09 November 2009 | India needs to draw up a comprehensive long-term sportingprogram so that the money that‘s being spent on the Commonwealth Games doesn‘tgo down the drain. 30
  31. 31. The first is the issue of legacy and the second is with respect to developing a robustand flexible disaster management system.05 November 2009 | Prime Minister Manmohan Singh has decided to get involved inthe effort to get the Capital ready for next year‘s Commonwealth Games, seeking toavert a potential national embarrassment on account of shoddy preparations for thecountry‘s biggest sporting event in 27 years.05 November 2009 | India has more than doubled the funds allotted for the2010Commonwealth Games and is convening a special meeting of the Union cabinet toreview preparations. The decisions by the cabinet come after Prime MinisterManmohan Singh decided to become involved in preparations for the Games thathave come in for significant criticism in the past few months.28 October 2009 | Earlier this year, the Comptroller and Auditor General (CAG)produced a report that evaluated the progress of Delhi‘s preparation for the 2010Commonwealth Games.01 October 2009 | Real estate developer Emaar MGF Land Ltd, preparing for aninitial public offering, will have to pay the Delhi Development Authority (DDA) apenalty if there is a delay in the completion of the Commonwealth Games Villageproject.03 June 2009 | After the Delhi Development Authority (DDA) bailed out real estatedeveloper Emaar MGF Land Ltd by agreeing to purchase 333 flats at theCommonwealth Games Village for Rs700 crore, the civil contractor for the projectsays that it had received most of the dues that Emaar MGF owed.15 March 2009 | The 2010 Commonwealth Games in New Delhi could be cancelledif a security assessment one month from the start deemed them unsafe to proceed,said a leading Australian official.08 March 2009 | The Commonwealth Games Village in Delhi is unlikely to becompleted on time because of alleged delays in payment by the developer, EmaarMGF Land Ltd. 31
  32. 32. 04 March 2009 | The 2010 Commonwealth Games will adopt security methodssimilar to those used at last year‘s Beijing Olympics, its chief said, allaying fears theattack on the Sri Lankan cricket team could scupper the event.06 January 2009 | The global economic meltdown has hit the preparation of 2010Commonwealth Games and Indian Olympic Association president Suresh KalmadiTuesday said the budget for the mega-event will be increased in view of the financialcrisis.04 December 2008 | The Union government is concerned about the pace at whichinfrastructure projects sanctioned for the 2010 Commonwealth Games in New Delhiare being built and the availability of hotel rooms in the Capital for the event.According to Union minister for science and technology KapilSibal, the Centre hasformed a group of ministers (GoM) to monitor the construction work.24 March 2008 | The Union government appears to have made sure thatconstruction of the Commonwealth Games Village on the ecologically sensitiveYamuna riverbed will continue, despite at least two scientific studies concluding thatno permanent structures should come up in that area in order to protect the floodplain.08 March 2008 | State-owned India Tourism Development Corp. Ltd (ITDC) hasembarked on a makeover worth Rs170 crore at more than half of its 15 propertiesahead of the 2010 Commonwealth Games in New Delhi, a senior executive said.18 July 2007 | The initiative is an attempt to address what is expected to be ashortage of affordable rooms in the city during the 2010 Commonwealth Games.CWG Scam Irregularity Liquid Soap Dispensers rented for Rs 9,379 a piece or $206 After a bidding process, the OC selected four foreign firms for their mega turnkey deal and, as it now transpires, while one vendor, Nussli of Switzerland, for instance, is charging Rs 187 for renting out each ―liquid soap dispenser,‖ another firm, British consortium ESAJV, is charging Rs 9,379 for the same item. While the Hong Kong-based Pico Deepali Overlays 32
  33. 33. Consortium is charging the OC Rs 2 for a single disposable glass, the ESAJV consortium is charging India Rs 37 per glass. All the hired items were split into seven operational ―clusters‖ covering all the 60 venues of the Games. Each cluster is made up of specific stadia and venues. An 82.5 KVA generator set is hired by OC for Rs 4.65 lakh from Pico Deepali. A generator of the same specifications was hired from Nussli for Rs 14.58 lakh. There is a difference of almost Rs 60 lakh for hiring a single public display system of identical size and pitch between Pico Deepali and ESAJV with several such systems being hired for a single games cluster Operating Expenses escalating from Rs 399 crore in December 2002 to Rs 1,628 crore finally. Medical equipment including tread mills have been bought or rented at 6-7 times their original price. Allegations that funds meant for Indias most deprived sections - the SC/ST - have been diverted to the games funds. Stealing from the poor to fund the elites luxuries?Construction so fragile, it falls before completion The commonwealth games 2010 related infrastructure projects have left Indias capital city, New Delhi, resembling a war zone. Practically all roads are dug up, cables lying all around, people jumping over little rocks as the pavements resemble Moon like craters. With more than 50,000 crore rupees already pumped in one would have expected at least decent output. Pitfalls: The newly built shooting range at the Siri Fort area collapsed after one heavy shower The foot over bridge adjacent to the main venue of the Commonwealth Games collapsed while being erected, injuring 27 workers who were dumped into a tow away truck to a municipal hospital and dished out a compensation of measly Rs 50,000 ($1097) for broken skulls and multiple fractures. 33
  34. 34. Many of the games venues leaked during the monsoon and roofs of some collapsed. The Commonwealth Games village, the place where athletes from participating countries will be put up is infested with dog poo, snakes, clogged toilets, and unfinished work. Fancy bill boards have erected all over the city to hide the piles of garbage, slums that are a trademark sight in any major city in India.Labor Law Violations Campaigners in India have accused the organizers of enormous and systematic violations of labor laws at construction sites. Human Rights Law Network reports that independent investigations have discovered more than 70 cases where workers have died in accidents at construction sites since work began. Although official numbers have not been released, it is estimated that over 415,000 contract daily wage workers are working on Games projects. Unskilled workers are paid 85 (US$1.7) to 100 (US$2) per day while skilled workers are paid 120 (US$2.4) to 130 (US$2.6) INR per day for eight hours of work. Workers also state that they are paid 134 (US$2.7) to 150 (US$3) for 12 hours of work (eight hours plus four hours of overtime). Both these wages contravene the stipulated Delhi state minimum wage of 152 (US$3.1) for eight hours of work. Nearly 50 construction workers have died in the past two years while employed on Games projects. These represent violations of the Minimum Wages Act, 1948; Interstate Migrant Workmen (Regulation of Employment and Condition of Services) Act 1979, and the constitutionally enshrined fundamental rights per the 1982 Supreme Court of India judgment on Asiad workers. The public have been banned from the camps where workers live and work – a situation which human rights campaigners say prevents the garnering of information regarding labor conditions and number of workers. There have been documented instances of the presence of young children at hazardous construction sites, due to a lack of child care facilities for women workers living and working in the labor camp style work sites. Furthermore, 34
  35. 35. workers on the site of the main Commonwealth stadium have reportedly been issued with hard hats, yet most work in open-toed sandals and live in cramped tin tenements in which illnesses are rife. The High Court of Delhi is presently hearing a public interest petition relating to employers not paying employees for overtime and it has appointed a four-member committee to submit a report on the alleged violations of workers‘ rights. During the construction of the Games Village, there was controversy over financial mismanagement, profiteering by the Delhi Development Authority and private real estate companies, and inhumane working conditions.CAG Report: Kalmadi deliberately delayed CWG contract  It was a significant failure and was the culmination of indecision of the OC on whether to execute the work internally or through outsourcing No agreement for foreign consultants  OC in February 2010 decided to engage the consultancy firm at a cost of Rs 98,500. Though the entire amount was released to the firm, OC couldnt produce to any formal agreement in support of the payment CWG DG colluded with vendors  Though Nusli with annual turnover of Rs 418,27cr was eligible for bidding for maximum 3 clusters, but OC allowed them to bid for 7 at the instance of VK Verma, Dir Gen. Reason for this has not been recorded in any of the documents Collusion between OC officials and vendors  Content of the consortium agreement indicates that the firm prior to the date of publication of EOI was aware of the requirement of forming consortium with Indian partners, about last date of submission of pre qualification bid, etc. This indicates collusion between OC officials and vendors Colluded to form a cartel  Such coincidence and precision of estimates, rarely seen in practice, points out towards a collusion and possibility of cartel among the vendors 35
  36. 36. Corruption in marketing: SMAM angle?  Indifference is significant in the light of the fact that the OCs revenue generation targets were by then far behind schedule and expenditure had already gone up manifold, liability for which was ultimately borne by GoI.Legal Cases against CWG CommitteeThe CBI has registered ten FIRs so far in the cases related to alleged irregularities inthe conduct of Commonwealth Games. One of these cases has been discussed inbrief below:The CBI registered cases against six officials of CWG Organizing Committee andtwo private firms for extending undue favors while appointing official Master Licenseefor merchandising and retailing during the games. Immediately, after filing of thecase, a team of CBI officials carried out search operations at 10 locations in Delhi,Mumbai, Gurgaon, Chandigarh and Panchkula. The agency named six OC membersincluding the then director general Mr. VK Verma, joint director general (finance) Mr.KUK Reddy, DDG (legal) Mr. Ram Mohan, DDG (procurement) Mr. Surjit Lal, (F & A)Mr. M Jeychandran and the then ADG (Image and Look) Ms Sangita Welingkar andfirms Compact Disc India Limited (CDIL) and its group arm Premier Branch PrivateLimited (PBPL), official sources said. The CBI alleged that these officials entered intocriminal conspiracy with the officials of the firms and by abusing their officialpositions, extended undue favor to PBPL in appointing it as official Master Licensefor Merchandising and On-line and Retail Concessionaire for CWG-2010 forsportswear, casual wear, kids wears against a minimum royalty amount of Rs 7.05crore, they said.The agency alleged in the case that after scrapping of the earlier bid on flimsygrounds, the Evaluation Committee of the OC CWG-2010, dishonestly consideredthe PBPL on the basis of the goodwill of CDIL, and on negotiations, PBPL submittedan offer of Rs 5.20 crore for acquiring all the rights of master licensee formerchandising, they said.―Thereafter the private company (PBPL) submitted two cheques amounting to Rs 3.5crore but the same were dishonored by the bank and as such the OC did not receive 36
  37. 37. any amount from the private company,‖ official spokesperson Ms Dharini Mishra saidhere. Thus, it is alleged that the accused private company actually used the CWGbrand properties and earned a huge profit, but did not pay anything to the OC, andthe accused public servants caused huge pecuniary advantage to director of theprivate company and corresponding wrongful loss to the government exchequer, shesaid.Further, Commonwealth Games Organizing Committee is fighting 14 legal casesfiled by several firms and its former employees seeking their dues. These casesrelated to the finance department, workforce, catering, merchandising unit, cleaningand waste management units, technology department and other works connectedwith organising of the Games. Some of these cases are: Ex-treasurer M Jayachandran, who is lodged in Tihar jail, has slapped a Rs five-crore defamation suit in the Delhi High Court against the OC for allegedly tarnishing his image. Jayachandran is an accused in the Timing-Scoring- Result (TSR) scam that has led to a loss of over Rs 95 crore to the exchequer. The CBI has accused him of manipulating the minutes of OCs Finance Committee to justify the alleged forgery in the award of TSR contract. OCs former chief of technology department Rajesh Kumar has moved the high court for alleged harassment by the management among other charges. Two companies - Unique Infoways and Bite and Byte - have also gone to the high court seeking dues. 37
  38. 38. Parties Involved Politician Law Bureaucrats Enforcers CAG SCAM Business CorporationsPoliticians Involved Suresh Kalmadi, the Congress party representative to 15 Lok Sabha from the Pune constituency. He was the Chairman of the Organizing Committee of the Delhi Commonwealth games. Sheila Dikshit, Chief minister of Delhi: Was indicted for several irregularities in the CWG processes both by Shunglu committee and also by the CAGBureaucrats Involved Lalit Bhanot, Secretary General of the Organising committee TS Darbari, Joint Director General of the Organising committee Sanjay Mahindroo, Deputy Director General of the Organising committee BS Lalli, CEO of Prasar Bharati M Jayachandran, Joint Director General (Accounts and Finance)Corporations Involved AM Films 38
  39. 39.  AM Cars SIS Live Jaypee Group, Its alleged that the proceeds of corruption are parked here through financial involvement of Suresh Kalmadis son, Sumeer Kalmadi in the F1 circuit project at Greater Noida. MTNL HCL InfosystemsBusinessmen Involved RSP Sinha, MTNL CMD SM Talwar, Executive director MTNL NK Jain, GM (Corporate Sales) MTNL Jitendra Garg, DGM MTNLWhistleblowers/ Law EnforcersThe scam was unearthed by CAG even before the conduct of the games. Presentlythe scam is being probed by the CBI.ScamsThe various contracts were manipulated by Kalmadi and team and allegedlymisappropriated huge amounts in the process.Time Scoring Results SystemKalmadi has been accused of awarding illegal contracts to a Swiss firm for Timing-Scoring-Result system for the Games causing a loss of Rs 95 crore to theexchequer.Queens Baton RelayThe Enforcement Directorate is probing the flow of funds and forex during theQueens Baton Relay held in London prior to the Commonwealth Games, apart frominvestigating the overlays-related works of the Games under the Prevention ofMoney Laundering Act. The ED case registered the case under Fema after Britishauthorities referred to the Indian High Commission a matter regarding hiring ofLondon-based transport firm AM Cars and Vans at exorbitant prices, and to similar 39
  40. 40. high payments to AM Films for installing video screens at the venue of the QueensBaton Relay.Broadcast NetworkCBI registered another case in the Commonwealth Games scam and searchedresidences of officials of Mahanagar Telecom Nigam Limited, or MTNL, and Noidabased HCL Infosystems for allegedly inflating cost of setting up a broadcast networkfor the Games by nearly Rs 400 crore.It is alleged that MTNL awarded the work of broadcast network based on IP/MPLSTechnology at an exorbitant price of approximately Rs 570.12 crore by manipulatingspecifications in such a manner as to make them tailor made for the said bidder tothe said private company (HCL)," Mishra said. The agency alleged that initialestimate of broadcasting data transmission project for the sporting extravaganza wasvery limited with an initial estimate of Rs 31.43 crore, but MTNL officials included aBroadcast Video Network based on IP-MPLS technology, which resulted in costescalation by Rs 380.04 crore.CBI alleged that this change in specification was done with an intention to causehuge pecuniary advantage to HCL Infosystems, causing loss to the exchequer.Recruitment to Organising CommitteeCBI sources lodged Preliminary Enquiry report against unknown persons in theGames organising body after it received several complaints and references from theCentral Vigilance Commission claiming violation of norms in the appointments. Theysaid the complainants alleged involvement of sacked OC Chairman Suresh Kalmadi,who is at present in judicial custody, and his close aides for irregularities in therecruitment process.In its PE, the CBI has alleged that during the period of 2003 to 2009, some personswere nominated to the OC who had no expertise for various jobs. The Gamesorganising body had an overall strength of about 2,100 officials engaged for variousduties related to the mega sporting event. At present, there are about 100 officials onthe rolls. The CVC has also conducted an enquiry into the alleged recruitment scamfollowing complaints that it showed ghost employees on its muster rolls and violatednorms while inducting people. The High Level Shunglu Committee had also foundalleged irregularities in the recruitment procedures followed by certain OC officials. 40
  41. 41. CNN-IBN NDTV Hindustan TimesThe CAG has questioned the deals between the CWG and certain media houses asthe organising committee (OC) apparently resorted to pick-and-choose policy in theaward of contracts worth over Rs. 6.73 crore. The CAG, in its report, tabled inParliament last week, has dubbed the process arbitrary and biased.The contract for production and broadcasting of commercials was given to two newschannels, CNN-IBN and NDTV. The CAG said the OC followed an arbitraryapproach with no planning for specific channels, time slots and cost benefit analysis.The CAG is more severe in its observations on the contract for creating a GamesTime website, meant to put out real time information on sporting events, given to HT-Hungama - a consortium comprising Hindustan Times and Hungama. It haslambasted the process of awarding the contract to the consortium and said theirwork was deficient. A benevolent OC overlooked the non-performance and did notencash the performance guarantee of Rs. 0.29 crore. A contract tweaked in favour ofHT-Hungama had no other provisions for penalties case of non-performance, theCAG said.It said the bidding process was squeezed and completed within two months, leadingto several irregularities. Among the three bidders, HT-Hungamas documentationwas deficient but ignored by the technical committee. It led the CAG to conclude thatthe process was tailored in HT-Hungamas favour.Response to Scam Kalmadi and Bhanot was sacked from the Organising Commitee by the Sports ministry on Jan 2011 Shunglu panel was constituted by Prime minister Manmohan Singh to go into the irregularities in the conduct of the Games. After his arrest on 25 Apr 2011, Suresh Kalmadi was suspended by the Indian National Congress 41
  42. 42. CWG Impact Safety & security concern Socio Vandalism of economic games village impact Impact of CWG Infrastructure Organizational Issue failure Racism Sporting Allegation controversyWe will discuss all of them one by one. 42
  43. 43. Socio Economic Impact Socio Economic Impact Social & Sex & Financial environmental Urban change prostitution impact BoomFinancialA leading research remarked that the 2010 Commonwealth Games will create "anegative financial legacy for the country" and asked "when one in three Indians livesbelow the poverty line and 40% of the hungry live in India, when 46% of Indiaschildren and 55% of women are malnourished, does spending billions of dollars on a12-day sports event build national pride or is it a matter of national shame?"One of the outspoken critics of the Games is Mani Shankar Aiyar, formerIndian Minister for Youth Affairs and Sports. In April 2007, Aiyar commented that theGames are "irrelevant to the common man" and criticized the Indian government forsanctioning billions of dollars for the Games even though India requires massiveinvestment in social development programs. In July 2010, he remarked that he wouldbe "unhappy if the Commonwealth Games are successful".Indian businessman Azim Premji called the 2010 Commonwealth Games a "drain onpublic funds" and said that hosting the high-expense Games in India is not justifiedgiven that the country had more important priorities facing it, such as education,infrastructure and public healthEnvironmental ImpactNearly 400,000 people from three large slum clusters in Delhi have been relocatedsince 2004. Gautam Bhan, an Indian urban planner with the University of California-Berkeley, said that the 2010 Commonwealth Games have resulted in "anunprecedented increase in the degree, frequency and scale of indiscriminate 43
  44. 44. evictions without proper resettlement. We haven‘t seen [these] levels of evictions inthe last five years since the Emergency."In response to a Right to Information (RTI) application filed for study and statementsby civil society groups, a report by the Housing and Land Rights Network (HLRN) -an arm of the Habitat International Coalition - detailed the social and environmentalconsequences of the event. It stated that no tolerance zones for beggars areenforced in Delhi, and the city has arbitrarily arrested homeless citizens under the"Bombay Prevention of Begging Act 1959".Urban ChangeMitu Sengupta, a professor of politics at Ryerson University, Canada, points out thatthere is a ―tradition of using ‗urban spectacles‘ such as the Olympics and World‘sFairs to enhance a city‘s global recognition, image and status, and to push throughcontroversial policy reforms that might otherwise linger in the pending file for years (itis easier to undercut local opposition under the pressure of a fixed deadline and theinternational spotlight).‖ She writes that the reforms involved are often ―the inventionof an affluent, globally connected minority that is relatively detached from localconditions and the local population.‖ The 2010 Commonwealth Games, she says,are being used to invigorate an elite-driven program of urban transformation‖ thatcenters on privatization, securitization, and the construction of ―monuments tovanity.‖ Sengupta expands upon this argument in a subsequent article in ZMagazine Amita Baviskar, a professor of sociology at the Institute of EconomicGrowth, University of Delhi, makes a similar argument, on how mega-events, likethe Olympics and Commonwealth Games, are used to advance narrow agendas ofurban reform that cater to the middle class and rich. She focuses on how, inpreparation for the Commonwealth Games, the citys slums were bulldozed in orderto make room for shopping malls and expensive real estate. Writer and activistGautam Bhan also draws a connection between the Commonwealth Games andanti-poor urban development in an article posted on Kafila, an alternative webzineSex Slavery and Prostitution BoomThere has been a boom in the number of young girls, mostly from impoverishedparts of India, coming to Delhi after being offered jobs by disguised criminals, only tobe taken prisoner and forced into sex slavery. The number of victims is believed tobe in the hundreds. Many brothels have been running English courses for sex 44
  45. 45. workers and upgrading their facilities in anticipation of a business upturn during thegames. Overseas prostitutes are also expected to come as tourists and ply theirtrade. One anti-trafficking NGO has claimed that there are reports of 40,000 womenbeing brought in from northeastern India alone. A spokesperson said that recruitsfrom that part of India were favoured because of their lighter skin. It has beenreported that over 3,000 bar girls in Mumbai have stopped going to work; this hasbeen blamed on an exodus to Delhi for the Commonwealth Games.Organizational Failure Organizational failureVigilance-related Preparation Mass volunteer Poor ticket sales Racismirregularities and delays walkout and attendance allegationsOver-InvoicingVigilance-Related Irregularities and Over-InvoicingOn 28 July 2010, the Central Vigilance Commission an Indian government bodycreated to address governmental corruption released a report showing irregularitiesin up to 14 CWG projects. As per official reports, total 129 works in 70 organizationshave been inspected. The detailed preliminary findings included the award of workcontracts at higher prices, poor quality assurance and management, and workcontracts awarded to ineligible agencies.There are also allegations of widespread corruption in various aspects of organisingthe games including procurement and awarding contracts for constructing the gamevenues. The Commonwealth Games Organising Committee on 5 August 2010suspended joint director T S Darbari and M Jayachandran following the report of thethree-member panel which was probing the financial irregularities related to theQueens Baton Relay. 45
  46. 46. Also, Organising Committee treasurer Anil Khanna resigned from the post in thewake of allegations that his sons firm had secured a contract for laying syntheticcourts at a tennis stadium. The GlobalPost news agency reports that scandals havecome to light, such as "shadowy off-shore firms, forged emails, inexplicablepayments to bogus companies and inflated bills — for every purchase from toiletpaper to treadmills." Among the alleged corruption and defrauding of the gamesbudget, toilet paper rolls valued at $2 were costed at $80, $2 soap dispensers at$60, $98 mirrors at $220, $11,830 altitude training simulators at $250,190Preparation DelaysIn September 2009, CGF Chief Mike Fennell reported that the games were at risk offalling behind schedule and that it was "reasonable to conclude that the currentsituation poses a serious risk to the Commonwealth Games in 2010". A report bythe Indian Government released several months prior found that construction workon 13 out of the 19 sports venues was behind schedule.The Chief of the Indian Olympic Association Randhir Singh has also expressed hisconcerns regarding the current state of affairs. Singh has called for the revamp of theOrganising Committee commenting that India now has to "retrieve the games".OtherIndian officials have also expressed dismay at the ongoing delays but they havestated that they are confident that India will successfully host the games and do soon time.As the Times of India reports, all CWG projects were to be completed by May 2009and the last year should have been kept for trial runs. The newspaper further reportsthat the first stadium was handed over for trial runs in July 2010 only. To put thedelays in perspective, Beijing National Stadium was completed much ahead ofschedule for the 2008 Summer Olympics, while the venues for 2012 SummerOlympics in London are scheduled to be delivered one year before the games andthe construction of the venues is on track.In August 2010, the Cabinet Secretariat took a decision to appoint 10 officers of therank of Joint and Additional Secretaries to oversee the progress of the constructionof stadiums. Each officer is allocated a stadium and given the responsibility toensure that the work completes in time for the games. 46
  47. 47. Mass Volunteer WalkoutAround 10,000 of the 22,000 selected volunteers quit, less than a week before theevent. This has been blamed on a lack of training for personnel, or dissatisfactionwith assignments. There are reports that some who have quit have not returned theiruniforms.Poor Ticket Sales and AttendanceThe start of the Games saw extremely poor ticket sales, with many venues nearempty.In a press conference, organising chairman Suresh Kalmadi admitted thatthere were problems, and blamed empty venues on ticket booths not being set upoutside stadiums.Commonwealth Games chief Mike Fennell admitted that manyvenues had been nearly empty on the opening day of the Games, saying "A numberof venues do not have lots of spectators one area which causes us concern". On thesecond day of competition, less than 100 people filled the hockey venue–the 19,000-seat MDC Stadium. Less than 20 people watched the first tennis match of thetournament in the 5,000-seat tennis stadium, and just 58 fans watched the netballopening match.One Indian competitor tried to buy tickets for relatives online, only to be informed bythe website that tickets were sold out. When he arrived to compete, he found thevenue to be empty.The streets of Delhi were deserted for the cycling road races and walking event.Racism AllegationAfrican countries have complained that they are getting second-class treatment fromthe Games organizers, in spite of them offering India a hand in the preparation of theGames. They have alleged that accommodation given to them was inferiorcompared to the accommodation provided to the Australian and New Zealand teams.They went on to state that India was complaining about being victims of racial bias inthe reporting of the Games; while simultaneously perpetrating the same kind ofracism against the African countries 47
  48. 48. Infrastructure IssueTransport InfrastructureThe Delhi Airport Metro express built by Reliance Infrastructure and CAFBeasain missed its deadline of 31 July 2010 and the private consortium was fined Rs11.25 croreVenuesLess than two weeks before the opening ceremony, Fennell wrote to the Indiancabinet secretary, urging action in response to the village being "seriouslycompromised." He said that though team officials were impressed with theinternational zone and main dining area, they were "shocked" by the state of theaccommodation. "The village is the cornerstone of any Games and the athletesdeserve the best possible environment to prepare for their competition.The BBCpublished photographs of the village taken two days before 23 September showingunfinished living quarters.New Zealand, Canada, Scotland and Northern Ireland have expressed concernabout unlivable conditions. The Times of India newspaper reports that the Scottishdelegation apparently submitted a photograph of a dog defecating on a bed in thegames village. Hooper said that there was "excrement in places it shouldnt be" inthe athletes quarters and that members of visiting delegations had to help clean upthe unsanitary things. The BBC released images of bathrooms with brown-colored paan stains on the walls and floor, liquids on the floor, and brown paw printson athletes beds. Lalit Bhanot, the secretary general of the Organising Committee,rejected the complaint that sanitation was poor by saying that, due to culturaldifferences, there are different standards about cleanliness in India and the westernworld, a statement for which he was widely ridiculed in Indian and internationalmedia. Bhanot went on to say of the athletes village that, "This is a world-classvillage, probably one of the best ever.Pakistan also made reservations over the condition of the athletes‘ village andasked for an alternate accommodation to be made available to its contingent whilepreparation was still in progress. 48
  49. 49. Problems with functionality of equipment and infrastructure during eventsOn the first night of swimming, debris landed in the swimming pool, causing delaysahead of a race. It is believed that part of the ceiling or its paint had fallen off.Before the last night of swimming finals, the filtration system broke down and thepool was turbid and murky during the warmup session and the finals, and the poolhas been described as the least clear ever seen for a swimming competition. Adisproportionate number of swimmers fell ill with intestinal complaints, leading toconcerns over the cleanliness and sanitation of the pool. Early suspicions rested onthe quality of water in the swimming pools of the SPM Complex,, but othercompeting teams, including South Africa, reported no such illness. Daily waterquality tests were being carried out on the water of the pools, as mandated by theevent standards. Additional tests were ordered after news of the illnesses, but theyalso did not find anything amiss. The Australian teams chief doctor, Peter Harcourt,ruled that the "chances of the [Delhi] pool being the cause of the problem is veryremote" and praised the hygiene and food quality in the Delhi Games Village.Hesuggested that it could be a common case of Travelers diarrhea (locally called Delhibelly), or the Australian swimmers could have contracted the stomach virus duringtheir training camp in Kuala Lumpur, Malaysia. English Olympic and Commonwealthgold-medalist swimmer Rebecca Adlington said that the water quality was absolutelyfine.A dog entered the athletics arena.After the opening ceremony, the ground at the athletics was damaged, and the grassinfield and the track was still being re-laid two hours before competition startedVandalism in games village by AthletesCondoms and Toilet BlockagesAn Indian newspaper during the games reported that used condoms flushed downthe toilets in the athletes village had caused some drains to become blocked,necessitating action by plumbers to clear the pipes. 49

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