Justice (Retd) L. Nageswara Rao, former Supreme Court Judge who has been appointed by the Supreme Court to resolve the impasse in Hyderabad Cricket Association, highlighted the alleged irregularities and corruption in the association in a report submitted by him to the Supreme Court.
In his report, Justice Rao (former Supreme Court Judge), who ensured that the HCA elections were held as per the rules and regulations on October 20, highlighted many irregularities in the functioning of the HCA like that of a travel agent charging higher prices in 81 sample instances, multiple bookings done for the same person in different cities, including ticket costs for the former vice-president’s wife, unexplained expenses for the former vice-president’s trip to the USA.
“One travel agency issued invoices totalling ₹ 14.68 lakh for accommodation for under-19, Ranji and under-19 women’s matches but was charged ₹4.23 lakh for accommodation in Kochi during a period when no matches were scheduled,” the report said.
“Discrepancies were observed in the invoices and quantity supplied related to catering. Almost five different vendors contracted by HCA to provide catering services for several matches either showed higher prices in their invoices than original price or charged multiple times for the same event or raised invoices parallelly with another vendor for the same event,” it is mentioned.
Justice Rao also pointed out that ₹1,09,40,000 was paid to club secretaries for the year 2014-15, 2015-16, 2016-17 for a period of six months from November 1, 2014 to April 30, 2015.
“A list of 54 members was attached with the minutes but was unsigned by the president,” it is informed. “This, despite a court order restraining the executive committee from withdrawing money from the HCA accounts,” Justice Rao pointed out.
“As per the bank payment vouchers, payments to selectors and coaches were made towards TA/DA for an amount of ₹ 1 lakh. However, no supporting documents for the claim were available with the payment vouchers,” he stated.
Justice Rao also pointed out that two different vendors charged for the same service like false ceiling, electrical, painting works, flooring work, carpentry, dismantling and civil works. “The Club House/Convention Hall were given on rent to outsiders, booked by the members and the revenue collected from the same was not recorded in account books,” the report said.
“Based on sample transactions reviewed by EY for FY 2015-2016, the potential impact on account of medical expenses reimbursed to the club secretaries or their families who were already covered under the medical insurance amounted to ₹8,76,665,” Justice Rao pointed out. “Further, an amount of ₹7,12,000 was also paid by the HCA for its office bearers without any supporting documentation,” he stated.
Interestingly, Justice Rao also highlighted the diesel expenses of ₹56,33,628 wherein the vendor (fuel filling station) was located at Yousufguda, 17 km away from the Stadium, and that it was part of a group with the same address and contact number and with no consumption register.
Touching the issue of complimentary tickets, Justice Rao noted that there were unreasonable demands by politicians, government officials, journalists for the same.
“There was an incident of a Cabinet Minister high-handedly entering into one of the executive rooms with several supporters and not leaving the room in spite of requests,” Justice Rao said.
“Sealed quotations were invited vide alleged newspaper notice dated January 18, 2021 with last date of submission as January 30, 2021 for installing fire-fighting equipment in the stadium. Despite having received responses from three bidders, Mohammed Azharuddin, the erstwhile president of HCA, did not allot the tender to any of the bidders. No reasons for not allotting were provided. Thereafter, HCA had floated a second tender for the same work,” Justice Rao said in the report.
“As per the HCA bank payment voucher of January 9, 2023, about 70% of the total amount to the extent of ₹1,53,44,978 was paid in advance to M/s Firewin Safety Engineers but there is no progress in execution of the work, even after six months of issuance of work order which is a violation of terms and conditions mentioned in the work order,” Justice Rao mentioned.
“As per HCA bank payment voucher authorised by the then Secretary R. Vijayanand and the then Treasurer Surender Aggarwal, an advance payment of ₹1,02,66,279 (50% of total work order value) was made on August 6, 2021. Though the delivery was to be made within 90 days, the same was not done till after a year,” Justice Rao explained.
The report also mentioned that issuing purchase orders by inflating the price of 1,100 bucket chairs resulted in a loss of ₹43,11,720 to HCA, on alleged misappropriation even in purchase of cricket balls (red and white).
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JUSTICE LN RAO’S RECOMMENDATIONS:
Continuation of Hyderabad Cricket Academy of Excellence Personnel
Appointment of Ombudsman and Ethics Officer
Pursuing criminal cases against persons who were involved in HCA Administration
Membership and support to all District Cricket Associations
Setting up of Anti-Corruption Unit and Engagement of former players as Observers
Amendment of HCA By-Laws to allow for admission and removal of members
Framing of rules of conduct of HCA Members
Inquiries to be conducted by the HCA Apex Council
Player representation in HCA by establishing a Players’ Body
Legal Strategy and Impetus
Declaration on Conflict of Interest by office-bearers
Age and Tenure Limit Application as per the National Sports and
Development Code and the Justice Lodha Committee Report
Forensic Audits
