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CWG scam: CBI closes case against MTNL [India] [Times of India]
[January 12, 2013]

CWG scam: CBI closes case against MTNL [India] [Times of India]

(Times of India Via Acquire Media NewsEdge) NEW DELHI: After nearly 18 months of probe, CBI has closed its investigation into one of the Commonwealth Games projects related to alleged inflation of cost by MTNL and a private company in setting up a broadcast network for the sports event by nearly Rs 400 crore.

CBI sources said the agency found that additional cost was incurred because the games in Delhi were spread across a much bigger area compared to Melbourne Games which were held within a radius of 10km.

Sources said the allegations of corruption could not be substantiated during probe and the cost escalation appeared to be the result of genuine reasons, prompting the agency to file a closure report before the competent court.

Sources said the infrastructure used for setting up IP/MPLS Technology-based broadcast network was established from scratch for the Commonwealth Games as compared to Melbourne where the technology was already in use.

CBI sources said their probe showed that Australia already had infrastructure in place for broadcast and it was like plug-and-play, thereby costing less.

They said the network had not gone waste after the games as it was being used by the state-run telecom provider which is earning money out of it.

In its case registered in June 2011, CBI had alleged that former MTNL chairman-cum-managing director R S P Sinha, executive director S M Talwar, GM (corporate sales) N K Jain and DGM Jitendra Garg had awarded work of broadcast network based on IP/MPLS Technology at an exorbitant price of approximately Rs 570.12 crore by manipulating specifications.

CBI had alleged that the initial estimate of broadcasting data project was very limited, costing Rs 31.43 crore, but the officials included a Broadcast Video Network which resulted in cost escalation by Rs 380.04 crore. It had alleged that the specification change was done with the intention to cause huge pecuniary advantage to the firm.

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