According to a report in Times of India, the Indian Railways has withheld contribution of Rs 100 crore, asking the Suresh Kalmadi-led OC to give a written undertaking that no amount out of its sponsorship donation would go to any outside agency as commission.
Quoting sources, the newspaper reported that the railways was prompted to take this step after the OC refused to reveal the shareholding pattern of the Singapore subsidiary of the Melbourne-based Sports Marketing and Management (SMAM).
As per a agreement between SMAM and OC, the Melbourne-based firm could benefit by up to 23 per cent of all contributions made towards the conduct of Games.
"We have raised a query with the OC whether any part of our contribution would go to SMAM," a senior railway official is quoted as saying in the report published on Wednesday, Aug 4.
This move by the Railways, the lead partner of the CWG 2010, could lead to similar moves from other public sector donors, namely Central Bank, Air India and NTPC, which have promised to pay Rs 50 crore each.