CWG scam: Kalmadi's right-hand man, Lalit Bhanot, arrested

New Delhi: The multiple trails of corruption involved with the Commonwealth Games have inched closer to the door of Suresh Kalmadi, who was the Chairman of the Organising Committee for the event that was held in October.

The CBI has arrested two men who worked closely with Mr Kalmadi.  Lalit Bhanot served as the Secretary General of the Organising Committee, and was seen as a trusted lieutenant of Mr Kalmadi, who was the Chairman of the Committee till he was sacked four weeks ago. VK Verma was the Director General of the Games.

Both men have been charged with the intent to cheat and criminal conspiracy.  They were questioned this morning in connection with a 107-crore contract given to a Swiss company whose equipment was used to keep time during different sports events in October 2010.  "It is alleged that the accused officers abused their official position and entered into criminal conspiracy with a Switzerland-based company and other unknown persons to cheat the government in awarding contract to the said company for acquiring Timing, Scoring and Result (TSR) System at exorbitant rates of Rs. 107 crore thereby causing huge loss to the government," a CBI spokesperson said.

Many believe today's developments are the final stepping stones to Mr Kalmadi's own arrest. Over the past few months, the six degrees of separation between Mr Kalmadi and the various financial felonies of the Games have melted away with several of his aides being raided, interrogated or arrested - all three,  in some cases.

Mr Kalmadi's own homes and offices have been raided by the CBI.  At the end of January, he was sacked as Chairman of the Organizing Committee by Sports Minister Ajay Maken who suggested that mr Kalmadi was not on board with "unhindered and impartial investigations."   Mr Kalmadi and the brazen, expansive corruption associated with the Games has cost the government dearly, with the Opposition adding it to a long list of scams that are currently battering the government's reputation.   

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But Mr Kalmadi -a seasoned politician known for his swagger and considerable clout in Pune - has remained defiant, insisting that he sees no reason for him to resign as head of the Indian Olympic Association.  He has also confronted his party, the Congress, by joining the Opposition's chorus for a Joint Parliamentary  Committee (JPC) to study the finances of the Games.  

In the weeks before the Games, media reports exposed that the Organizing Committee was functioning as a sort of private boardroom with the one-point agenda of making its members richer. Virtually every contract associated with the Games was rigged - from broadcast rights to sponsorship deals  - and saw the Committee collude with companies, many of them based in Australia and the UK. Those companies were not just allowed but in some cases instructed to charge exorbitant rates for their services.  In emails, for example, Committee member Sanjay Mahindroo orders a London-based company to charge 450 pounds a day for the taxis it was supplying in October 2009 for an event that kick started the Games in London - the Queen's Baton Relay.

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That function was mired in so many financial irregularities that in November, the CBI arrested  Mr Mahindroo along with T S Darbari, former Joint Director General of the Games and M  Jeychandran, who had served as the Treasurer for the Organizing Committee.  

However, all three men were released in January this year, after the CBI failed to file a chargesheet against them, suggesting that it did not have enough evidence to merit  a trial.