Delhi Court closes ED investigation in 2010 CWG money laundering case

Bringing an end to a 13-year-old case, a Delhi court on Monday approved the Enforcement Directorate’s closure report in a money laundering investigation involving Suresh Kalmadi, former chairman of the 2010 Commonwealth Games Organising Committee, along with then secretary general Lalit Bhanot and others.

With the court’s acceptance of the closure report, the money laundering aspect of the alleged scam, dating back 15 years, has officially concluded.

Accusations of corruption surrounding the organisation of the 2010 Commonwealth Games had sparked a major political controversy in the country, resulting in multiple criminal and money laundering cases, including the one just closed.

Kalmadi and others were accused of misconduct in the award and execution of two important contracts for the games.

Money laundering was not found

Special Judge Sanjeev Aggarwal observed that the CBI had already closed the corruption case that had originally prompted the Enforcement Directorate’s money laundering investigation. He accepted the ED’s closure report, which also mentioned the then Chief Operating Officer of the CWG Organising Committee, Vijay Kumar Gautam, former treasurer A.K. Matto, Event Knowledge Service (EKS) of Switzerland, and its CEO, Craig Gordon McLatchey.

The judge acknowledged the ED’s statement that no offence of money laundering was established during the course of its investigation.

“Since during the investigations, the prosecution has failed to make out a offence under section 3 (money laundering) of the PMLA… as no offence under section 3 of the PMLA has been made out or has been committed, despite discreet investigations by the ED, therefore, there is no reason to continue with the present ECIR, as a consequence, the closure report filed by the ED stands accepted,” the judge held.

2010 CWG scam case

The sole money laundering investigation was initiated by the ED based on the case lodged by the CBI.

According to the CBI, the works contracts related to Commonwealth Games were Games Workforce Service (GWS) and Games Planning, Project & Risk Management Services (GPPRMS).

An undue pecuniary gain was caused by the accused persons to the to the consortium of EKS and Ernst and Young, by way of awarding the two contracts in a deliberate and wrongful manner and caused corresponding loss of Rs 30 crore to OC, CWG, the CBI alleged. The CBI later filed a closure report in January 2014, saying “no incriminating evidence surfaced during the investigation in the matter” and the allegations in the FIR could not be substantiated against the accused persons.

(With PTI inputs)

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