CWG: UK firm AM Films dubious? Documents expose

M.today

London, August 2:  As India’s top anti-corruption watchdog, the Central Vigilance Commission (CVC) investigates why Suresh Kalmadi, the Chairman of the Commonwealth Games (CWG) Organising Committee, and his team did not have a written contract with AM Films, the company that they paid huge sums of money to, NDTV now learns that the company is under the scanner of the UK government.

NDTV has accessed documents from the UK Registrar of Companies, which clearly show the dubious nature of AM Films and its sister firm, AM Car Hire and Van Company.

While AM Films got a liquidation notice in July, which has now been withdrawn, its sister company AM Car Hire is already in liquidation.

The CWG’s Organising Committee struck an expensive deal with both companies owned by Ashish Patel, to provide certain services, during the Queen’s Baton Relay.

The documents show that AM Films faced liquidation in July 2010. A day after getting the liquidation notice, its director Ashish Patel resigned from his post. The liquidation notice was later withdrawn, after the company gave an explanation.

But that’s not all, even its sister company, Am Car and Van Hire Company, filed for liquidation in July 2010.
 
The Organising Committee of the CWG had paid 2,50,000 pounds to AM Films and Am Car And Van Hire Company.
 
The documents accessed by NDTV also show the questionable track record of Ashish Patel. He frequently changed the registered addresses of his companies. He also frequently changed the management of his companies.

Documents also reveal that Patel frequently appointed himself and then resigned from posts in his companies. He also often changed the names of his companies. Ashish Patel’s modus operandi seems to have been to open and shut companies.
 
A major scam hit the CWG OC on Friday when it came to light that AM Films, a little-known UK firm, was paid lakhs of pounds for its "services" during the London leg of the Queen’s Baton relay. (Read: Corruption scandal hits CWG, organisers deny charges)

A letter written by Deputy High Commissioner of India in London, Rajesh N Prasad, to the Sports Ministry about allegations of corruption made by the UK government, said that money sent from the CWG in India to AM Films in UK was unaccounted for.

The UK government raised a red flag after it followed the money trail from the CWG accounts in India to AM Films. The UK tax office then wrote to the Indian High Commission on June. The UK Government has launched an investigation into the matter.

Suresh Kalmadi, the Chairman of the CWG Organising Committee has admitted that there was no contract under which payments were made to the company which was roped in "at the last minute", but added said the Indian High Commission had recommended the name of AM Films, and "if there is something wrong there, I am not responsible for it". The Indian High Commission has, however, denied Kalmadi’s claim.