Shunglu Committee set up to probe CWG Scam submitted Second Report to the Cabinet Secretary

The Shunglu Committee set up to probe corruption in organising the Commonwealth Games (CWG) on 23 March 2011 submitted its second report to the Cabinet Secretary. In its second report the committee indicted Delhi Lieutenant Governor (LG) Tejender Khanna, along with some top officials of the Delhi Development Authority (DDA) including DDA’s vice chairman Ashok Kumar and private developer Emaar MGF.

The committee headed by former Comptroller and Auditor General (CAG) V.K. Shunglu  also fixes responsibility for the CWG fiasco on DDA's member (finance) Nand Lal, former member (engineering) A.K. Bajaj, and former secretary (urban development) M. Ramachandran.

The panel also indicted Emaar MGF, the company which built the CWG Village, for causing losses to the exchequer. According to the report thirty-three flats at the village were sold at a higher price, which hiked the overall price from Rs 134 crore to Rs 222 crore. Unauthorised payments were made to Emaar MGF and at least Rs 64 crore was paid contrary to the project development agreement. EMAAR MGF presented a hiked price of Rs 11,000/sq ft instead of the original price of Rs 7,829/sq ft. The carriage cost of unsold apartments has been pegged at Rs 35 crore per annum. The report specified non-levying of liquidation damages that lead to a loss of 81.45 crore.

The report also stated that the corruption and the delays led to a loss of Rs 220 crore to the exchequer.

The committee recommended government action against all public servants named in the report and found to be involved in the scam. It recommends action against Emaar MGF for acts of commission and omission. The committee put forth questions about the bail-out package of around Rs 730 crore to Emaar MGF by the DDA. The committee recommended examination of the governance structure of DDA to determine why lieutenant governor should be the ex officio chairman.

The Shunglu Committee was formed by the prime minister immediately after the commonwealth games which was organised in New Delhi in October 2010. The Shunglu Committee was formed to investigate weaknesses in management, alleged misappropriation, irregularities, wasteful expenditure and wrongdoing in the conduct of the Games as well as make recommendations.
The Shunglu Committee had on January 31 submitted its first report on alleged irregularities in awarding broadcasting rights during the games and recommended strict action against suspended chief executive officer of Prasar Bharti BS Lalli and former Director General (Doordarshan) Aruna Sharma under relevant Sections of IPC and Prevention of Corruption Act for their alleged act of omission and commission.