The UK-based company at the center of a corruption row which has rocked the upcoming Delhi Commonwealth Games today admitted that it did not have a contract with the event's organisers but denied allegations of irregular financial transactions with them.
AM Films, the firm which has received lakhs of pounds for extending its "services" for the Queen's Baton Relay's London leg, however, denied allegations that the deal with the CWG Organising Committee was questionable.
"No illegal or irregular financial transactions have taken place between AM Films and the Commonwealth Games organising committee," the company's owner Ashish Patel said.
"The money was transferred in lieu of services obtained during the Queen's Baton Relay function in London in October last year and we have all the details of the deal which I can produce if needed," he added.
Asked whether the company had a contract to show, Patel said, "No, we didn't have the contract in place at that time. Everything was happening so fast so we couldn't get the contract then. Now the revenue wants to know where is the contract."
"I'm waiting for his lawyers. He is away and will return on August 9. I will take a decision after speaking with him. If needed I can even come down to India," he told 'NDTV'.
The entire deal came to light when the OC asked for a VAT refund of £14,000 in March this year for the payments made to the British company.
Allegations of a substantial sum of money being transferred to AM Films from the Games Organising Committee (OC) emerged yesterday with the British government also raising doubts about the deal.
Reports claimed that over £4.50 lakh were transferred through a British bank to AM Films, which was also receiving £25,000 a month.
However, Patel denied all such reports and said he has so far received £2,47,000 from the OC. Patel claimed that the OC still owes his company £1,23,000.
"No money has come to my account without paper work and I can show you. Whatever money has come we have invoices against that. No money came into my account apart from the £2,47,000 .
"There is no transaction which came for £25,000 . I have given all invoices to the OC, against which they paid me. One invoice of £1,23,000 is still outstanding, which we have sent but they have not sorted out the payment as yet," he said.
Reports quoted a letter of the British Revenue and Customs Department to the Indian High Commission stating that there was no written contract between the CWG and AM Films and that no tendering procedure was followed.
The OC is reported to have made a payment of nearly £2.5 lakh for video equipment purchased while AM Films has claimed that it provided services of car hire, makeshift toilets, barriers and electricity.
Indian High Commission sources said the information provided by the UK authorities had been forwarded to the Sports Ministry for follow up action.
In Delhi, cabinet secretary KM Chandrashekhar conveyed concern over the charges as well as delay in preparations to the Organising Committee of the sporting event in October this year.
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