The disputes between the companies involved in the organisation of the Commonwealth Games in 2010 and the Organising Committee over delayed payments which run into hundreds of crores are likely to be resolved soon.
The tribunal deciding the dispute consists of former High Court judges. The matter was earlier investigated by the Central Bureau of Investigation. The agency had earlier arrested the India director of one of the companies called Nussli, a Swiss company.
There were numerous instances in which the Organising Committee and the companies involved in the organisation of the Games, which took place under very controversial circumstances have been at loggerheads. However, most such disputes have been settled or are in the process of being settled. In fact, the OC had some dispute or the other with almost every company involved.
The Commonwealth Games were marred by charges of corruption and inefficiency. They were held under the Congress regime, when Sheila Dikshit was Delhi Chief Minister and Manmohan Singh was Prime Minister.
GL Events was one of the four overlays providers for the games, amongst others. It is likely to resolve its disputes in the next six months. It is one of the last cases being heard. Sources in the know told The Sunday Guardian that the arbitration process is reaching its final leg. "It will take at least another six months to be completed," said a source.
Other companies that got similar contracts were PICO-Deepali and Nussli, among others. The arbitration process in Nussli's case is over and has gone in its favour, it is reliably learnt.
GL Events entered into a joint venture with an Indian company, Meroform, and formed a third company for the purpose of the Games called GLLE Private Limited. It reportedly had a contract worth Rs 165 crore. However, it was not the paid the entire amount and approximately Rs 100 crore were due.
The contractors had provided furniture, fittings and equipment for the games. "They provided everything that was required to make a games venue operational," said a source. The payments were delayed in all cases. This was also related to charges of corruption being inquired into against the OC by various investigative agencies and committees.
Independent bodies like the Comptroller and Auditor General of India and the V.K. Shunglu Committee had earlier indicted the OC for not having proper or definite processes for the entire organisation of the games. People managing the committee were inexperienced to handle an international event of such a magnitude, these bodies had concluded.