CWG scam: Kalmadi blamed by I-T department, may be asked to pay for losses

New Delhi: Problems seem to be mounting for sacked Commonwealth Games (CWG) chairman Suresh Kalmadi. The Income Tax (I-T) department has now blamed Mr Kalmadi for "serious lapses of control" during his reign as the chairman of the CWG Organising Committee (OC). In a notice sent to the Committee, details of which have been accessed exclusively by NDTV, the I-T department demanded to know why crores of rupees were spent during Mr Kalmadi's stint as the OC chief which were not in conformity or linked with the objectives of the Organising Committee which was tasked to run the multi-nation sporting extravaganza.

The agency has also imposed tax liabilities of more than Rs 40 crore on the Organising Committee.

The I-T department has found 19 violations which took place under Mr Kalmadi, including the renovation of the Indian Olympic building for Rs 4 crores from the OC's budget, and Rs 3 crores given as advance for the Beijing Olympic program for which several people not linked with sports were sent as observers to Beijing. This is already being probed by government agencies.

Sources in the OC say that Mr Kalmadi may now be asked to pay for any losses incurred during the said period. The present OC has also recommended to the sports ministry to order a probe against Mr Kalmadi as well as other former members on the body as also initiating an investigation into eight more deals in connection with the Games.

"The notice has been sent on overspending beyond sanction...as far as laws are concerned...they can tax for non designate spending...certainly they can impose tax on the Organising Committee...Interest and penalties will also be charged...and for every period," said Sudhir Jhangee, a senior Chartered Accountant.

Mr Kalmadi is currently lodged in Tihar Jail after he was arrested for alleged financial irregularities, running into crores, in connection with the Commonwealth Games.