A Central Bureau of Investigation (CBI) spokesman said sacked Organising Committee joint director general T. S. Darbari and deputy director general Sanjay Mahendroo were arrested after detectives raided their homes.

Anurag Kumar alleged the two handed out contracts at "exorbitant rates" to two London-based private firms for providing transport services and video screens for the Queen's Baton Relay in London in October 2009.

The CBI have charged the former officials with forgery, criminal conspiracy and corruption as well as against owners of London-based companies -AM Car-Van Services and AM Films.

"It is alleged the accused officials in conspiracy with the London-based transport firm and its director awarded work to the firm at exorbitant rates without following the standard tender process," the CBI said in a statement.

"The work was awarded on the false premise that the firm was on the panel of Indian High Commission in London."

The statement added the second contract was "awarded on the basis of fake quotations.

"The accused persons caused huge loss to the Government of India and corresponding wrongful gain to the accused firms."



Darbari and Mahendroo were sacked by the Organising Committee's chairman Suresh Kalmadi (pictured) after the scandal surfaced before the Games began.

The Central Vigilance Commission (CVC) has also received complaints alleging up to $1.8 billion of Games money was "misappropriated".

Claims include payments to non-existent organisations, wilful delays in executing contracts and over-inflated prices for many items including toilet rolls and treadmills.Months before the event began, the CVC reported a plethora of problems with construction work including the use of poor-quality materials.

In one of the worst incidents, a new footbridge next to the main stadium fell down and injured scores of labourers 10 days ahead of the opening ceremony.

Prime Minister Manmohan Singh set up a panel to investigate claims of financial irregularities and two other Government bodies are also running separate probes.


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