The expense was believed to be have been incurred when 162 people were sent to Beijing in 2008 to be observers. The trip was managed and organized by Suresh Kalmadi in his capacity as OC Chief.
The matter has come into limelight by the Shunglu Committee that has heavily criticized Kalmadi and companied 2008 Beijing trip. The matter was also highlighted by the Comptroller and Auditor General (CAG) who slammed the wasteful expenditure by Kalamdi and stated that it was not linked to the OC's functions.
The Organizing Committee had challenged the bills submitted by nine foreign firms, including Sports Management and Marketing (SMAM), Event Knowledge Service (EKS) and "Grand Big Event". These foreign firms made a hue and cry after they claimed non-payment of dues way back in Jan. The OC had however asked some of the firms to return the excess payments made citing that the assigned work was only partly done.
Kalmadi who is presently housed in the Tihar jail for committing massive fraud and misappropriation of funds during the conduct of the Commonwealth games and awarding of contracts.