No case against Kalmadi, others: Court accepts ED closure report on 2010 CWG scam

The 13-year-old corruption case pertaining to the 2010 Commonwealth Games (CWG) has come to a close with a Delhi court accepting the decision of the Enforcement Directorate to end its investigation into alleged money laundering linked to the event.

The case had gained attention due to allegations against Suresh Kalmadi, former chairman of the CWG Organising Committee, and Lalit Bhanot, former Secretary General, among others.

Special Judge Sanjeev Aggarwal of the Rouse Avenue Court pointed out that the CBI had already closed the related corruption case which had led the ED to begin its money laundering investigation.

The ED report also named several key figures, including Vijay Kumar Gautam, the then COO of the CWG Organising Committee, AK Matto, treasurer, as well as the company, Event Knowledge Service (EKS), and its CEO Craig Gordon MeLatchey.

The allegations revolved around financial misconduct in awarding two major contracts for the Games, which were said to have led to illegal profits for certain parties while causing losses to the organising committee.

Judge Aggarwal, while accepting the ED’s closure report, explained that no crime related to money laundering under Section 3 of the Prevention of Money Laundering Act (PMLA) could be established due to lack of criminal proceeds.

The investigation also found no evidence of any offence under Section 2(1)(y) of the PMLA, which defines scheduled offences. The evidence gathered showed that no act of money laundering had occurred as per the PMLA stipulations.

Despite extensive investigations by the ED, the prosecution was unable to provide proof of any offence under Section 3 of the PMLA, which carries penalties under Section 4 of the same law. As a result, the court accepted the ED’s closure report and concluded that the investigation could go no further.

The case had earlier drawn considerable political attention in India, leading to multiple legal proceedings, including both criminal and money laundering.

In 2016, a special court had accepted the CBI’s closure report in a related corruption case. This case involved officials of the Central Public Works Department, the Delhi Development Authority and a private company among others. The CBI found that its investigation had not uncovered enough evidence to support the allegations against the individuals named.

The ED investigation, which was based on the CBI findings, had focused on two contracts related to the Games — Games Workforce Service and Games Planning, Project and Risk Management Services.

These contracts were said to have been awarded unfairly, benefiting a consortium involving EKS and Ernst & Young, causing a loss of Rs 30 crore to the organising committee. However, the CBI had concluded in 2014 that no incriminating evidence was found, and the allegations could not be proven. With both the ED and the CBI failing to substantiate the claims, the case has now officially ended.

In conclusion, the investigation into the CWG corruption case, initiated by the ED based on the CBI’s report, has now been closed after years of legal proceedings and numerous allegations.

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