Fresh audit in DDCA points to crores worth scam, Jaitley may be in trouble

0

A fresh audit of Delhi and District Cricket Association has unearthed more dodgy dealings including when Union Finance Minister Arun Jaitley was the cricket body’s head.

DDCA

A report by Outlook said that financial irregularities running into multiple crores of rupees have been ‘unearthed’ in a special audit done on the controversy-prone Delhi and District Cricket Association (DDCA) for financial years 2012-13, 2013-14 and 2014-15, ordered by a Delhi High Court-appointed Administrator at the DDCA.

The stunning discovery of financial embezzlement will give fresh ammunition to AAP leaders, who have been slapped both criminal and civil defamation cases by Jaitley.

The corruption in DDCA was first highlighted by Janta Ka Reporter in 2015 through a series of expose. The suspended BJP MP and former India cricketer Kirti Azad had then held a press conference and released a video of an AGM, where Jaitley was seen being accused of forging documents.

The fresh revelations also included unauthorised transfer of money worth crores out of the DDCA accounts by its officials, embezzlement in purchase of match tickets, absence of cash vouchers and related bills/cash memos, multiple payments to vendors for the same work done at the DDCA-owned Feroze Shah Kotla Stadium, bills worth lacs paid without certification, exorbitant and unverifiable expenses by DDCA Directors, and violation of financial rules and regulation awarding work/contracts are some of the areas that DDCA officials have allegedly indulged in.

The Delhi High Court had appointed former Supreme Court judge Vikramajit Sen as DDCA Administrator in January this year while hearing a case between the DDCA and the South Delhi Municipal Corporation (SDMC) over an alleged unauthorised construction within the Feroze Shah Kotla Stadium. Sen advertised seeking proposals from “reputed audit companies for providing “external audit” for 2012-2013, 2013-2014 and 2014-2015” in February. Then, in May, Sen advertised again and this time the Delhi-based S. Mathur Co., a firm of chartered accountants, agreed to do the herculean task.

Also Read:  I can't agree with Kejriwal more, but sadly Times Now did not ask more questions on row with LG

Embezzlement in purchase of ticket worth of Rs.231.82 lacs
a. Tickets of Rs. 1,76,39,300 purchased on credit on account of DDCA
b. Ticketsworth of Rs.11.42 lacs through cheques of DDCA Bankaccount.
c. Cash of Rs.29 Lacs first shown as BCCI expenses, later on it has been shown
that this cash withdrawal was used for purchase of tickets without entering into
cash account and without the knowledge of executive committee members.
d. Rs.8.50 cash plus Rs.6.50 lacs totalling Rs.15 lacs were also withdrawn from
cash for purchase of tickets without knowledge or executive committee members.
Sh. S.P. Bansal has neither adjusted Rs.231.82 lacs nor he has given the
accounts of tickets so purchased, on credit on DDCA account, or in cash. (Para
1, 1.1.1, 1.1.2)

2. Rs.18 lacs drawn on different dates for BCCI meeting as mentioned in the voucher
but the cash so withdrawn used for fictitious payment. Cash voucher/cash memos
pertaining to cash payment of Rs.18 lacs are not available the cash was embezzled
(para 1.3)
3. Cash Vouchers and related bills/cash memos of Rs.55 lacs are not available. Modus
operandi of embezzlement has been incorporated in relevant para 1.4.
4. The company made an unauthorized loan to defraud the DDCA, given to private
parties of Rs.155.50 lakh on 30.01.2014 in the name of three private limited
companies(parties) viz (i) Rs.49.90 lakh to Maple Infrareality Pvt. Ltd. (ii) Rs.53.50
lakh to Shri Ram Tradecom Pvt. Ltd. and (ill) Rs.52.10 lakh to Vidhan Infrastructure
Pvt. Ltd. recovered on deduction of fraudulent advances when pointed by the
executive committee members. Details given in the main report in para 2.1.
5. Dubious payment of Rs.7.70 lacs paid for same work which was not actually
executed at all. The Civil Engineer Sh. Ajay Kumar Chaurasia has confirmed that he
has no information about the work and payment of the bill has not been certified by
him.

Also Read:  'Arun Jaitley's nominees' rejected by board to head PTI News, Modi supporters left seething

6. Likely fraud- Bills worth .of Rs.42.04 lacs were paid without the certification by the
Civil Engineer (Sh. Ajay Kumar Chaurasia) who has given in writing that the related
five bills of Rs.42.04 lacs have not been certified by him, as he has no knowledge
about the execution of works referred.(para 3.1)

7. Dubious payment Rs.33,70,800 of two identical payment of Rs.16,85,400 each, to
different company on single day for same work without obtaining approval of the
executive committee members. Opinion report is also not available.(para 3.2)
8. Suspected transactions related to different contractors, vendors and suppliers for
Rs.2,83,79,127 (Total of Annexure-8 of Rs.45,66,439 + Annexure-11 of
Rs.2,30,62,337 + Annexure-13 of Rs.7,50,351) which are not verifiable.(para 4.1)
9. Director travelling expenses of Rs.4.28 lacs not verifiable in absence of required
evidence.(para 4.2)

10.Total debit balance in 4 sundry parties of Rs.18,60,373 outstanding since long. No
action taken for recovery.(para 4.3)

11. Undue favour to few chosen employees amounting of Rs.45.25 lacs by way of exgratia,
bonus.

12. Approval of registrar of companies not obtained for pension payment to former
Ranji Players who are members of the DDCA.(para 5.2)

13. Unauthorized one time fixed amount Rs.65,74,037 paid to staff for purchase of
ticket, conveyance and for lunch during the matches contrary to the agreement
between management and employees for wage settlement.(para 5.3)

14.Violation of Memorandum and Companies Act. – making payment to the members
and their relations for their professional services rendered or provided without any
legal appointment letter or memorandum of understanding reports of professional
are also not available.(para 6)

Also Read:  NJAC represented people's will, Sadananda Gowda

15. Violation of financial rules and regulation awarding work contracts and making huge
advances without justification or obtaining any written request for advances.(para
7.1)

16. Payment of Rs.51.07 lacs on computer generated bills without ensuring the service
tax registration number and VAT registration number of the vendor creating doubt
about the genuineness of the bills.(para 7.2)

17. Excess service tax ofRs.8,43,732.85 paid due to negligence and casual approach of
DDCA officials (para 7.4)

18. Heavy cash used for payment to supplier violating the income tax rules and
regulation and executive instructions.(para 7.6)

19. Misuse of power awarding contract to supplier of eatables during the matches
without calling tender and allotment of work order and ensuring the quality of the
food and rate which the vendor will be charging.(para 8.2)

20. Excess entertainment tax of Rs.278.46 lacs paid because of not claiming the refund
of unsold and surrendered tickets well in time by the official of DDCA .(para 9.1)

21.Hiring of consultant without memorandum of understanding, appointment letter
defining the scope of work.(para 9.2)

22. Loss of Rs.83.05 lacs due to mishandling of property tax case in spite of hiring fleet
of lawyers to defend DDCA.(para 9.3)

23. Diluting the charge against the accused employee by releasing his gratuity and
leave encashment violating ofservice rules and regulation.(para 9.4)

24. Deficiency in internal control with regard to payment of bills, non recovery of claim
from GMR, non compliance statutory laws, and without assuring the payment to
consultancy firm genuineness professional competency. Double payments to
professionals and misuse of advance by employee and members.(para 9.5, 9.6, 10.
11.2,11.3)

25.Write off claim of Rs.18.09 lacs without any justification and approval from the
executive committee.(para 11.8.4)

LEAVE A REPLY

Please enter your comment!
Please enter your name here