Caught in a web of corruption scandals and under intense pressure from the government, the Commonwealth Games organising committee was on Tuesday forced to form a three-member panel to probe allegations of irregular financial transactions with a little-known UK-based company.
The decision to form the panel came after Kalmadi met foreign minister, S.M. Krishna amid speculation that the letters recommending the UK-based company — A.M. Cars and Vans — from the Indian High Commission could have been doctored.
Mr Kalmadi had presented emails from the High Commission's protocol division to insist that the company was recommended to the OC ahead of Queen's Baton relay in London.
But the ministry of external affairs has apparently questioned the authenticity of these mails.
"Organising committee Commonwealth Games Delhi 2010 Chairman, Suresh Kalmadi has set up the panel which includes Jarnail Singh, OC chief executive officer, G.C. Chaturvedi, special director general-finance, and Gurjyot Kaur, chief vigilance officer," OC secretary general, Lalit Bhanot, told reporters here.
"The Committee will look into the issue of money being paid to AM Car and Van Limited and the ministry of external affair's contention about the letters issued by the Indian High Commission in the United Kingdom," he said.
Mr Kalmadi has his back against the wall with allegations of widescale corruption and shoddy construction work at the Games' venues also being highlighted by the Central Vigilance Commission.
Mr Bhanot said the media reports about corruption have been taken note of by OC and it has therefore formed a panel to investigate all the allegations.
The UK-based AM Films was allegedly paid lakhs pounds for its "services" during the baton relay but Kalmadi though admitting that there was no contract with the company has denied any irregular financial transactions.