The 2010 Commonwealth Games may have ended on October 14th, but the controversy surrounding the organising of the games is far from over. In Parliament, the Opposition has called for a Joint-Parliamentary Committee (JPC) to be formed to investigate suspected financial irregularities in the organising of the Games[1]. In a statement in Parliament on Tuesday, Minister for Youth Affairs & Sports M.S. Gill commented that “All irregularities will be examined and the guilty will not be spared”[2]. In July 2010, the Central Vigilance Commission (CVC) found irregularities in 14 Games related construction projects[3]. It has been reported that officials from the CVC now believe total misappropriation of Games Funds could be between Rs 5000 crore and Rs 8000 crore [4]. So what is being done about it? Currently, six different government organisations are conducting independent inquiries into financial irregularities, corruption, and mismanagement of the Games: the High Level (Shunglu) Commission, CVC, CAG, CBI, Income Tax Department, and Enforcement Directorate (ED).  With so many government organisations involved, it can be difficult to decipher the big picture. Here is a breakdown of what each organisation is doing: High Level Commission (Shunglu Commission): The Commission was appointed by the Prime Minister on October 15th[5]. It is chaired by V.K. Shunglu, former Comptroller and Auditor General of India, who has been given the status equivalent to a Supreme Court Judge[6]. The Commission has a broad mandate to investigate all matters regarding the Games, specifically:[7]

  • Roles and responsibilities of signatories to Host City Contract
  • Planning and execution of development projects and contracts
  • Effectiveness of organisational structure and governance for agencies involved
  • Managerial weaknesses
  • All financial aspects of the event, including wrongdoing
  • Coordination issues amongst agencies
  • Role of advisors and consultants to Organising Committee
  • Overall impact of the games
  • Lessons learnt for the future

A report from the Commission detailing its findings is expected by mid January. Central Vigilance Commission (CVC): The CVC first found financial irregularities in 14 Games projects in July 2010.  Subsequently, it asked the CBI to register a corruption case against MCD officials in connection with a tender issued for a Games project[8]. In total, the CVC has found irregularities in 38 games related projects, under the following departments and agencies:[9]

  • Ministry of Youth Affairs & Sports: 6
  • Delhi Development Authority: 6
  • Public Works Department: 6
  • Municipal Corporation of Delhi: 5
  • Central Public Works Department: 4
  • Organising Committee: 3
  • New Delhi Municipal Council: 3
  • Government of Delhi: 2
  • Department of Commerce: 1
  • Indian Meteorological Department: 1
  • RITES: 1

The CVC has directed the above agencies to respond to queries regarding the irregularities and has directed the CBI to begin a Preliminary Inquiry into them [10]. The CVC will report its findings to the Shunglu Commission. Income Tax Department: The I-T Department is investigating tenders and awards of contracts for Games related works, as well as tax evasion [11]. It has conducted raids in offices of over 30 business firms and individuals [12]. Enforcement Directorate (ED): The ED is proceeding against Organising Committee officials for violations of the Foreign Exchange Management Act (FEMA) for projects involving venue development and overlays contracts awarded by the Organising Committee. Central Bureau of Investigation (CBI): It has been reported that the CBI had received over 300 complaints of corruption in Games projects by August 2010[13]. It is verifying these claims and investigating matters highlighted by the CVC. Comptroller and Auditor General (CAG): In August 2009, the CAG published a report entitled Preparedness for the XIX Commonwealth Games highlighting the lack of preparedness for the Games and its escalating cost.  The CAG is conducting a detailed audit of the Games that is expected to be published in March 2011[14]. Given that CAG reports are tabled in Parliament, the March 2011 report will be critical to the Parliamentary debate on the Games. Two members of the Organising Committee, the Joint Director and the Deputy Director General, were arrested by the CBI this past Monday.  However, Given that the report of the Shunglu Commssion is due in January 2011, the CAG audit will follow two months later, and the current Opposition demand for a JPC remains unresolved, it may be some time before significant details are made public.


[1] http://economictimes.indiatimes.com/news/politics/nation/BJP-to-press-for-JPC-probe-into-spectrum-Adarsh-CWG-scams/articleshow/6934697.cms [2] http://www.thehindu.com/news/article890174.ece [3] ttp://economictimes.indiatimes.com/news/news-by-industry/et-cetera/CVC-finds-irregularities-in-several-CWG-projects/articleshow/6229429.cms [4] http://www.deccanherald.com/content/105830/cwg-fraud-may-touch-rs.html [5] http://www.business-standard.com/india/news/games-over-pm-orders-probe-into-pre-event-mess/411739/ [6] http://economictimes.indiatimes.com/news/politics/nation/CWG-probe-Shunglu-given-status-of-SC-judge/articleshow/6818404.cms [7] http://pib.nic.in/newsite/PrintRelease.aspx?relid=66561 [8] http://timesofindia.indiatimes.com/city/delhi/CWG-construction-CVC-asks-CBI-to-register-corruption-case/articleshow/6237714.cms [9] http://www.hindustantimes.com/specials/sports/cwg-2010/22-more-CWG-works-under-CVC-scanner/CWG2010-TopStories/SP-Article10-614446.aspx [10] http://www.indianexpress.com/news/Claiming-fraud---favour-in-Games-rentals--CVC-to-CBI--begin-probe/700998/ [11]http://www.indianexpress.com/news/it-dept-collects-cwg-works-related-documents/698683/ [12] http://www.thehindu.com/news/national/article837892.ece [13] http://www.indianexpress.com/news/cbi-has-over-300-complaints-regarding-games-works/655692/ [14] http://economictimes.indiatimes.com/news/politics/nation/CAG-starts-Commonwealth-Games-audit-report-by-March-2011/articleshow/6252852.cms

On November 28, 2012, the Comptroller and Auditor General submitted its report on the implementation of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).  According to the report most of the projects initiated under JNNURM have not been completed.  For instance with respect to urban infrastructure projects, only 231 projects out of the 1298 sanctioned projects have been completed.  Similarly, with respect to housing projects, only 22 of the 1517 projects have been completed.  Some of the other key recommendations of the report are:

  •  Some of the reasons for the delay in completing the projects include: (i) delay in acquiring land; (ii) deficiency in preparation of projects; and (iii) non-identification of beneficiaries which increased the risk of ineligible beneficiaries getting the benefits.
  •  A total allocation of Rs 66,084 crore had been made by the Planning Commission.  However, against this total allocation, the central government had made an allocation of only Rs 37,070 out of which until March 30, 2011 only Rs 32,934 had been released.
  • There was a delay in releasing these funds to the states.  A large portion of the funds was released only in the last quarter and more particularly in March.
  • The JNNURM guidelines were deficient as they did not provide adequate guidance to the states on the method of parking the funds and utilization of interest.

The need and objectives of JNNURM According to the 2011 census India’s urban population has increased from 286 million in 2001 to 377 million in 2011 .  With the increase in urban population, there is a requirement to improve the urban infrastructure and improve the service delivery mechanisms.  With these specific objectives in mind, the central government launched the Jawaharlal Nehru National Urban Renewal Mission 2005-2006.  The aim of the Mission is to encourage reforms and fast track planned development of identified cities (such as cities with a population of more than 1 million as per the 2001 census).  JNNURM has two main components namely : (i) Urban Infrastructure and Governance  and (ii) Urban Infrastructure Development for Small and Medium Towns. The duration of JNNURM was from 2005-06 to 2011-12. However, as the projects have not been completed the Government has extended its duration until March 2014. Funds for JNNURM The funds for JNNURM are provided through the Additional Central Assistance.  This implies that the funds are provided as grants to the states directly from the centre.   In the 2012 Union Budget, the central government has allocated Rs 12,522 crore for JNNURM. This represents around 10 % of the total central assistance through the different schemes to states and union territories in 2012-13. As on June 30 2012, 554 projects at a total cost of Rs 62,253 crore have been sanctioned under the Urban Infrastructure and Governance sub-mission of JNNURM.   The table below shows the status of the sanctioned JNNURM  projects in the different states. State wise status of the projects under JNNURM                 (as on August 6, 2012)

Name of State Total Allocation (Rs Lakh) Number of sanctioned projects Completed Projects
Andhra Pradesh 2,11,845 52 18
Arunachal Pradesh 10,740 3 NA
Assam 27,320 2 NA
Bihar 59,241 8 NA
Chandigarh 27,087 3 NA
Chattisgarh 24,803 1 NA
Delhi 2,82,318 23 4
Goa 12,094 2 NA
Gujarat 2,57,881 72 40
Haryana 32,332 4 NA
Himachal Pradesh 13,066 5 NA
Jammu & Kashmir 48,836 5 NA
Jharkhand 94,120 5 NA
Karnataka 1,52,459 47 22
Kerala 67,476 11 NA
Madhya Pradesh 1,32,850 23 7
Maharashtra 5,50,555 80 21
Manipur 15,287 3 NA
Meghalaya 15,668 2 NA
Mizoram 14,822 4 NA
Nagaland 11,628 3 NA
Orissa 32,235 5 NA
Punjab 70,775 6 1
Puducherry 20,680 2 NA
Rajasthan 74,869 13 2
Sikkim 10,613 2 NA
Tamil Nadu 2,25,066 48 12
Tripura 14,018 2 NA
Uttar Pradesh 2,76,941 33 4
Uttarakhand 40,534 14 NA
West Bengal 3,21,840 69 15

Source: Jawaharlal Nehru National Urban Renewal Mission; PRS.

  • Gujarat at 55.55% has the highest number of completed projects, while Uttar Pradesh at 12.24% has the lowest number of completed projects.
  • Out of the larger states, Delhi and Maharashtra at 17% and 26% have a comparatively low rate of completed projects.
  • Maharashtra has the highest number of sanctioned projects, while the North Eastern states, Chattisgarh and Puducherry have the lowest number of sanctioned projects.