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 Sportstar, 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 one crore by the DDCA to its standing counsel for various cases from 2010 onwards.

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 ex-gratia payment was sanctioned by S. P. Bansal, the then president of the company on the request of beneficiary employees.”

“Payment of Rs 7.70 lakh on identical works to two vendors which was already executed by another vendor” is a shocking revelation along with “Purchase of match tickets of Rs Fifteen Lakhs for issue as complimentary to Government officials.” In addition, the auditors discovered, “No account of complimentary tickets given by GMR and additional paid tickets purchased by DDCA from GMR as per the agreement between the association and GMR Sports Pvt Ltd 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 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.

The auditors have discovered that “unauthorised loan” was made to “Private Parties 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. N. 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 without 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.