Kalmadi meets Krishna, seeks to clarify CWG's stand on UK money scam

New Delhi, Aug.3 (ANI): Indian Olympic Association (IOA) president Suresh Kalmadi, who is at the center of an alleged corruption scam linked to the Commonwealth Games to be held in New Delhi from October 3 to October 14, met External Affairs Minister S.M. Krishna on Tuesday to clarify the Commonwealth Games stand on the UK money trail.

The controversy emerged over charges that a UK-based firm AM Films is being used as a conduit for siphoning off crores of rupees (lakhs of pounds) that have been sanctioned by the government for the smooth conduct of the games.

While Kalmadi has claimed publicly that the protocol division of the Indian High Commission in London cleared the firm to do business with the Commonwealth Games Organising Committee, the high commission and the Ministry of External Affairs have denied giving any such sanction.

The Sports Ministry has asked Kalmadi to remove his close aide T.S. Darbari from the CWG Organising Committee, compounding his problems further.

Darbari is currently the Deputy Department General of the Games panel and has come under the scanner after reports emerged about his association with AM films, a little-known UK firm that was paid lakhs of pounds by the CWG Organising Committee for its "services" during the London leg of the Queen's Baton relay.

Investigations have revealed that AM Films and its sister concerns are suspect business entities that were paid 2,50,000 pounds without any written contract.

The company had faced liquidation in July 2010. A day after getting the liquidation notice, its director Ashish Patel resigned from his post. The liquidation notice was later withdrawn after the company gave an explanation. Even its sister organisation, AM Car and Van Hire Company filed for liquidation in July 2010.

AM Films is currently facing a probe by UK Customs and Revenue Department.

Media reports claim that the money trail leading to UK is key proof of the rampant corruption in the Commonwealth Games 2010.

Kalmadi has called a meeting of the Commonwealth Games Executive Board on August 5 to discuss the allegations of corruption on a demand of the Commonwealth Games Federation. (ANI)