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

The Justice  Srikrishna Committee, which is looking into the feasibility of a separate Telangana State, is expected to submit its report by tomorrow.  It might be useful at this point in time to revisit the recommendations of the 1953 States Reorganization Commission (SRC) – the Commission that had first examined the Telangana issue in detail. However, it must be kept in mind that some of those arguments and recommendations may not be applicable today. Background Before independence, Telangana was a part of the Nizam's Hyderabad State and Andhra a part of the erstwhile Madras Province of British India. In 1953, owing to agitation by leaders like Potti Sreeramulu, Telugu-speaking areas were carved out of the Madras Province. This lead to the formation of Andhra Pradesh, the first State formed on the basis of language. Immediately afterward, in 1953, the States Reorganization Commission (SRC) was appointed. SRC was not in favour of an immediate merger of Telangana with Andhra and proposed that a separate State be constituted with a provision for unification after the 1961/ 62 general elections, if a resolution could be passed in the Telangana assembly by 2/3rd majority. However, a 'Gentlemen's agreement' was subsequently signed between the leaders of the two regions and this lead to a merger. The agreement provided for some safeguards for Telangana - for instance, a 'Regional Council' for all round development of Telangana. Thus, a unified Andhra Pradesh was created in 1956. In the years that followed, Telangana continued to see on-and-off protests; major instances of unrest were recorded in 1969 and in the 2000s. The SRC 1953 report The full SRC report can be accessed here. Summarized below are its main arguments and recommendations related to Telangana. Arguments in favour of 'Vishalandhra'

  • The merger would bring into existence a large State with ample agricultural land, large water and power potential, and adequate mineral wealth.
  • Fewer independent political jurisdictions would help accelerate important projects related to the development of Krishna and Godavari rivers.
  • The two regions would complement each other in resources - Telangana was not self-sufficient in food supplies but Andhra was; Andhra did not have coal mines but Telangana did.
  • Substantial savings could be realized through elimination of redundant expenditure on general administration.
  • Hyderabad could serve as a suitable capital for the entire region.

Arguments in favour of a separate Telangana State

  • Andhra had been facing financial problems and had lower per capita revenue than Telangana. Resources raised through land and excise revenues in Telangana were higher.
  • Telangana claimed to be progressive in administration and hence did not foresee any benefits from a merger. In addition, people feared that the region might not receive adequate development focus in a large 'Vishalandhra'.
  • Telangana did not wish to lose its independent rights - for instance, the rights to utilization of waters of Krishna and Godavari.
  • The educationally backward people of Telangana feared losing out to people from the more developed coastal regions, especially in matters of employment.

SRC recommendations The Commission agreed that there were significant advantages in the formation of 'Vishalandhra'. However, it noted that while opinion in Andhra was overwhelmingly in favour of a larger unit, public opinion in Telangana had still to crystallize. Even though Andhra leaders were willing to provide guarantees ensuring development focus on Telangana, the SRC felt that any guarantee, short of Central Government supervision, could not be effective. In addition, it noted that Andhra, being a relatively new State, was still in the midst of developing policies related to issues like land reform. Thus, a hurried merger could likely create administrative difficulties both for both units. The SRC thus recommended the creation of a separate Telangana State with provision for unification after the 1961/62 general elections.