Commonwealth Games: CBI registers case against officials of MTNL, HCL Infosystems

The Central Bureau of Investigation (CBI) has registered a case against some officials of public sector telecom services provider Mahanagar Telephone Nigam Limited (MTNL) and Noida-based IT services major HCL Infosystems in connection with its ongoing probe into alleged irregularities in the organisation and conduct of the Commonwealth Games held in Delhi in October last year.

The CBI alleged that MTNL awarded the work of broadcast network, based on IP/MPLS technology, at an exorbitant price of approximately Rs 570.12 crore by manipulating the specifications in such a manner as make them tailor made for the private company.

According to a CBI press release, though the broadcasting data transmission requirements for the Games were very limited, based on optical fiber transmission, for which an initial estimate of approx.Rs. 31.43 crore was prepared, MTNL, in its proposal, included Broadcast Video Network based on IP/MPLS technology that grossly enhanced the network costing by about Rs.380.04 crores, allegedly with an intention to cause huge pecuniary advantage to the contracting firms.

"This resulted into huge loss to the Government exchequer and wrongful gain to the Noida-based private company. The enhancements in the scope of work and engineering of conditions of contract were made by the officials concerned of MTNL in such a manner that sub-contract could be awarded only to the said private limited company," the release said.

It said that, after the registration of the case, searches have been carried out in various parts of the country including Delhi, Noida, Jaipur and Patna.

During searches conducted so far, documents relating to immovable and movable property belonging to accused persons and other incriminating documents have been recovered. Searches are still going on at these places, the release added.

NNN