The OC transferred Rs 1.68 crore to the AM Films for the service obtained during the Queen's Baton Relay function in London in Oct 2009, which was attended by the President of India and the Queen of England.
The British Revenue and Customs Department has now written to the Indian High Commission, stating there are discrepancies in the payment of this money by the OC.
British tax authorities also revealed that there were no written contract between the CWG and the AM Films. This shows that they didn't followed any tendering procedure and paperwork regarding the contract.
On Friday, Jul 30, OC secretary-general Lalit K Bhanot has rejected the allegations of financial irregularities.
"The OC firmly refutes allegations of financial irregularities with relation to the launch of the Queen's Baton Relay. We have followed due diligence in making all payments, getting the clearances from the Executive Board and from Reserve Bank of India for incurring the expenditure in foreign currency. All remittances happened against this clearance," said Lalit K Bhanot in a statement.