IOA at Loss of INR 24 Cr Due to 'Faulty' Agreement With RIL, Reports CAG; President PT Usha Questioned Over Contract
As per the CAG Audit Report, the Indian Olympic Association’s “faulty” sponsorship agreement with Reliance India Limited (RIL) led to a loss of INR 24 crore to IOA, giving undue favour to RIL. President PT Usha is asked to shed light on the issue.
The sponsorship deal signed on August 1, 2022, granted the right to associate with IOA (Indian Olympics Association) as an Official Principal Partner of the Asian Games (2022, 2026), Commonwealth Games (2022, 2026), 2024 Paris Olympics and 2028 Los Angeles Olympics. The agreement, besides other things, gave RIL the rights to construct and showcase the ‘India House’ during these Games. Later, the agreement was amended on December 5, 2023, to include additional rights for the 2026 and 2030 Winter Olympic Games, as well as the 2026 and 2030 Youth Olympic Games, without a corresponding increase in the consideration amount. Hindustan Times published the news of the CAG report for the IOA-RIL sponsorship contract. PT Usha Lashes Out at IOA Executive Council, Says ‘These Accusations Are Intended To Malign My Leadership’.
These new changes in the agreement raised many questions as the CAG report mentions that the consideration amount remained unchanged at ₹35 crore despite the addition of four more events. It also states that, adding the ₹6 crore per game the amount should have been revised to ₹59 crore, which was not done resulting in INR 24 Cr loss to the IOA. The CAG’s report has raised serious questions about the transparency and accountability of the IOA’s sponsorship agreements.
Moreover, there were questioning and allegations from the IOA’s internal committees as treasurer Sahdev Yadav raised concerns over the lack of consultation with the executive council and sponsorship committee during the amendment of the agreement. All eyes are on IOA President PT Usha now who is asked to respond to the half-margin issued by the CAG regarding the agreement. IOA President PT Usha Issues Show Cause Notice to Treasurer Sahdev Yadav Over ‘Extended Tenure’ Violating Cap Set by Sports Code.
Ajay Kumar Narang, executive assistant to IOA president Usha, gave some explanation over the ‘no change of amount’ and said the agreement had to be renegotiated because of a ‘flaw’ in the tender. “When the agreement was signed and naming rights were granted, it was in the name of sponsors -- Reliance India House. In 2022, the International Olympic Committee allowed sponsors name with the country house. But in 2023 the IOC changed the conditions to say that the sponsor cannot use a name and it will have to be a country-named House,” said Narang.
(The above story first appeared on LatestLY on Oct 06, 2024 10:09 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).