Large-scale misappropriation of funds by officials revealed

The first preliminary audit observation by G.S. Mathur & Co. has revealed large-scale misappropriation of funds by officials of the Delhi and District Cricket Association (DDCA).

The Chartered Accountants were asked to conduct forensic audit by DDCA Administrator Justice Vikramajit Sen following complaints of corruption at DDCA.

In a scathing report, available with The Hindu , the auditors have pointed out various cases of illegal transactions which only confirm the allegations the DDCA has been facing for a long time.

The auditors have pointed a payment of over Rs. 1 crore by the DDCA to its standing counsel for various cases from 2010 onwards.

Unauthorised payment

Former DDCA president S.P. Bansal has been charged with unauthorised payment to some employees. The report claimed, “Undue favour to executives by way of payment of ex-gratia of Rs. 25.25 lakh although there was no policy on payment of ex-gratia to its employees.

The payment was sanctioned by Bansal, the then president of the company on the request of beneficiary employees.”

“Payment of Rs. 7.70 lakh on the same work to two vendors which was already executed by another vendor” is a shocking revelation long with “Purchase of match tickets of Rs. 15 lakh for issue as complimentary to government officials.”

Irregularities

The auditors also pointed out a lot of irregularities in respect of complimentary tickets given by GMR Sports Pvt. Ltd. and additional paid tickets purchased by DDCA from GMR as per the agreement between the association and GMR for IPL matches (2013 and 2014).”

Bansal has been charged with purchasing additional tickets on credit to DDCA amounting to Rs. 93,86,250 against which GMR has claimed Rs. 73,33,300 after giving discount.

The reports says that Bansal has provided accounts of tickets so purchased.

“No reconciliation statement/account of ticket distribution of complimentary and paid tickets has been made out by DDCA,” the auditors have pointed out.

The difference of amount (Rs. 34,65,860) of tickets as claimed by GMR and the entry passed by DDCA have not been explained.

“Unauthorised loan”

The auditors have discovered that “unauthorised loan” was made to “Private Parties to the tune of Rs. 155.50 lakh in the name of three private limited companies (Maple Infrareality Pvt. Ltd. (49.90 lakh), Shri Ram Tradecom Pvt. Ltd. (53.50 lakh) and Vidhan Infrastructure Pvt. Ltd. (52.10 lakh).”

According to the auditors, “Double payment to two financial consultancy companies was made. By appointing these two companies instead of B. Mathur Consultants Pvt. Ltd. the DDCA has violated the directions of its Executive Committee.”

The audit report also reveals that “award of works contract and for manpower assistance without tender, work order, approvals and agreements has meant that ensuring the actual execution of work and genuineness of the payment released to the vendors is unascertainable and the possibility of fraudulent payment is not beyond doubt.”

Irregular payment of conveyance charges and non-compliance of Income Tax provisions relating to Tax Deducted at Source are some of the other points highlighted by the auditors.