Thirty locations in and around Delhi are currently being raided by Income Tax officials.
Among them, the home of senior BJP leader Sudhanshu Mittal, whose nephew, Vinay Mittal, won major contracts for the Commonwealth Games through two companies - Deepali Designs, which he owns; and IREO, a construction company that he is closely associated with.
Sudhanshu Mittal became a director of Deepali Designs in February this year. Soon after, the company won a massive contract to supply treadmills, chairs, umbrellas and other equipment referred to as "overlays." Weeks before the Games, NDTV and other media companies reported on what came to be known as the overlay scam - equipment was being supplied at several times its market price.
Income Tax officials are trying to seize documents including invoices and contracts for companies that had foreign partners. They're also trying to uncover any proxy ownership of the companies that were hired for the Games.
The massive charges of corruption that prefaced the Games are being investigated through a series of parallel inquiries by different agencies. The Prime Minister's Office has made it clear that those responsible for financial violations will be identified and held accountable.
On Monday, Income Tax officials visited the offices of the Organising Committee, headed by Suresh Kalmadi. Sources say financial documents linked to the broadcast rights for the Games are being studied for alleged tax evasion. The terms of the same deal - won by a London-based company - are also being examined. Early investigations allegedly show that the tax statements of the Indian office of that company show discrepancies in crores.
The channels used to pay the company are also being studied, and members of the Organising Committee are likely to be summoned soon for questioning.
On Monday, the Comptroller and Auditor General, Vinod Rai, formally announced a massive audit of the expenditure on the Games. Vowing to complete the audit within three months, Rai said that in addition to accountability, the report will determine whether the equipment and materials used for the Games justified the expenditure.
