dna exclusive: Serious Fraud Investigation Office hauls up DDCA for irregularities

The Serious Fraud and Investigation Office (SFIO) has indicted the Delhi & District Cricket Association (DDCA) of committing serious financial and election frauds between 2006 and 2012.

In its report to the ministry of corporate affairs and a written communication to the ministry of urban development, the SFIO has asked the ministries to initiate action against the DDCA in connection with several matters.

The most serious objection raised by the SFIO has been regarding the lease of the Ferozeshah Kotla stadium.

In its report, the SFIO says a large amount of money (Rs130 crore as per documents with dna) has been spent on the ground despite knowing that the lease of the land on which the stadium is built has not been renewed by the ministry of urban affairs.

Former India captain Bishen Singh Bedi told dna. “Not just this, the documents show that Rs35 crore have been charged from 10 corporate houses, including ONGC, for sub-leasing them boxes in the stadium for which they have no authority.” According to the SFIO report, the DDCA has accepted that they are in the process of renewing the lease. “Imagine if the lease is not renewed?

Who will be answerable if the Rs130-plus crore goes down the drain?” asked Bedi.

The DDCA has also been castigated for not ensuring transparency in doling out contracts for non-routine, big-ticket items like generators. “It is clear that every year, crores of rupees have been siphoned off without caring to go through the transparent system of inviting tenders even for non-routine items like generators, stadium-building, etc. Most of the big-ticket purchases have been through ‘front companies’ of key DDCA office-bearers and their supporters,” former Delhi skipper and MP Kirti Azad alleged.

The SFIO report also indicts the DDCA in connection with payments made to its members and officials. “DDCA’s top officials have been collecting proxies by way of doling out monetary benefits to its own members over the years. That’s the prime reason why these corrupt officials would not like former cricketers to enter their premises. The Cricket Improvement Committee was not formed despite being promised for the same reasons,” Azad, member of India’s 1983 World Cup winning team, said.

Azad has been at the forefront of a campaign against the corrupt practices of the Delhi cricket administration. On the issue of crores of rupees being paid to members and office-bearers, the SFIO has confirmed that this was in contravention of the provisions of clause 4 of MOA, r/w Sec 36 of the Companies Act and has initiated action against the DDCA in this regard.

There were irregularities in the election procedure of the DDCA too, according to the SFIO investigating team. “The DDCA elections are nothing but a farce. All the 4,294 proxies are controlled by DDCA office-bearers and their cohorts. Twenty-four DDCA members are residing at the residence of its vice-president CK Khanna. If you look at the electoral roll, you will find practically all office-bearers having multiple members staying with them. This is the reason why these corrupt officials keep cricketers at a distance,” former India player and Delhi skipper Surinder Khanna said.

dna has learnt that all 4,294 votes are being controlled by DDCA’s top five officials. The SFIO’s investigation team has confirmed this is in contravention of the provisions of section 150 of the Companies Act.

“All the issues that members and cricketers have been raising for the last several years and which the DDCA management has been avoiding, have been laid bare in the SFIO’s damning report. I am sure the DDCA is not the only association where such irregularities take place. The devil is in the detail... money is being misused and siphoned off by certain office-bearers in practically all state associations. The BCCI is aware of everything that is going on,” Azad said.

The ROC has confirmed that action under sections 209, 150, 211, 314, 309 and 299 is proposed to be taken against the DDCA management for various infractions of the Companies Act.