Senior diplomats from seven European countries and Australia signed a letter demanding action over broken contracts and valuable equipment that is still stuck in Indian customs since the Games were held in October last year.

"The long delay in settling these matters is damaging India's national reputation, denting the confidence of foreign business and raising doubts about the enforcement of contracts," the envoys wrote.

Britain and Australia have been joined Belgium, Britain, France, Germany, Italy, the Netherlands and Switzerland in signing the letter, which was delivered to Finance Minister Pranab Mukherjee last month.

Diplomats confirmed the letter after it was printed in the Hindustan Times today.

"We have a mutual interest in ensuring that India continues to attract the levels of trade and investment to sustain levels of growth that realises the country's economic potential," the envoys said in the letter.

"The long delay in settling these matters is damaging India's national reputation, denting the confidence of foreign business and raising doubts about the enforcement of contracts.

Australian companies have also complained bitterly about unpaid fees for organising the Opening and Closing Ceremonies, while British firm SIS Live is in a legal battle to be paid in full for broadcasting services.

Indian police have arrested the Delhi 2010 Organising Committee's director general, V. K. Verma, and its secretary general, Lalit Bhanot, over alleged financial irregularities.

The national anti-corruption watchdog, the Central Vigilance Commission (CVC), received complaints alleging up to $1.8 billion (£1.1 billion) of Games money was misappropriated.

Swiss Timing, which has worked at many recent Olympic Games, recently took out full-page advertisements in the Indian press to deny allegations of kickbacks after police accused it of over-charging.

Not only are bills unpaid, but some firms are also being barred from shipping back equipment used in the Games.

"Many of these containers hold equipment essential for the companies' business," the envoys said.

"As a result, some have had difficulties fulfilling their obligations to other major international sporting events."


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