CBI arrests Kalmadi; telecoms case widens
The Central Bureau of Investigation (CBI) arrested Suresh Kalmadi, former chief organiser of the Delhi Commonwealth Games on Monday as part of a crackdown in a slew of corruption scandals.
Kalmadi, a senior lawmaker, was sacked in November after games organisers were accused of manipulating contracts and inflating bills in an event which was meant to showcase India's rise as a global power but was instead beset by problems.
In a separate case, Kanimozhi, daughter of the Dravida Munnetra Kazhagam (DMK) party's head Karunanidhi, was among those charged on Monday with taking bribes in the multi-billion dollar telecoms licensing scandal, which may strain the Cong-DMK coalition and weaken the regional party's chances at the ballot box.
Kalmadi's arrest puts under renewed scrutiny, the $6 billion sporting event last October which became embroiled in rows over leaking stadiums, filthy athletes' accommodation and inflated tenders for equipment including treadmills and toilet paper.
Kalmadi was arrested 'for conspiracy to show favour to a private firm based in Switzerland in awarding the contract for timing, scoring and results systems at inflated prices of 1.41 billion rupees ($31 million)', said a spokesperson for the CBI, Dharini Mishra.
Kalmadi has, so far, denied any wrongdoing.
Charges in telecoms investigation
Police on Monday also filed charges against two more executives from DB Realty, whose parent DB Group is the Indian joint venture partner of the UAE's Etisalat, and the managing director of a television channel owned by the DMK party.
Police had earlier charged three telecoms firms, a former telecoms minister and six corporate executives with a range of crimes in the licensing scandal that a state auditor said may have deprived New Delhi of $39 billion in potential revenue.
The DMK, which has denied any wrongdoing, has threatened to pull ministers out of the coalition government if members of the family that heads the party were charged, according to media reports.
In a sign of fraying ties, the DMK threatened to pull out from the government in March in a row over seat-sharing arrangements in the Tamil Nadu election.
However, analysts question whether the DMK would act on such a threat, given that it needs Congress's clout in the state as much as Congress needs the DMK's 18 seats to maintain its federal majority.
"Congress will have braced for this," said Manoj Joshi, comment editor at the Mail Today newspaper.
"They have a mutual interest in hanging together, no matter what, at this juncture."
Police investigating the telecoms case say companies connected to the DB Group funnelled millions of dollars to a television channel owned by the family that runs the DMK party.
Those charged in the ongoing telecoms case have denied any wrongdoing.
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