The Comptroller and Auditor General (CAG) has released an audit report highlighting irregularities in the Indian Olympic Association’s (IOA) sponsorship agreement with Reliance India Limited (RIL). The report alleges that the agreement has resulted in undue favoritism towards RIL and a loss of ₹24 crore to the IOA.
Under the terms of the agreement, signed on August 1, 2022, RIL was granted the right to associate with the IOA as the Official Principal Partner for various sporting events, including the Asian Games, Commonwealth Games, and the Olympics. The agreement also gave RIL the exclusive rights to construct and showcase the ‘India House’ during these events.
However, the CAG report reveals that an amended agreement on December 5, 2023, granted RIL additional rights for the Winter Olympic Games and Youth Olympic Games without any corresponding increase in the consideration amount. The report states that the IOA should have raised the consideration amount from ₹35 crore to ₹59 crore, as the rights for six games were originally valued at ₹35 crore, or an average of ₹6 crore per game.
The report concludes that the “faulty agreement” with RIL has resulted in a loss of ₹24 crore to the IOA and undue favoritism towards the sponsor. The IOA president, PT Usha, has been asked to respond to the CAG’s findings.
IOA executive assistant Ajay Kumar Narang defended the agreement, claiming that it had to be renegotiated due to a flaw in the tender. He stated that the International Olympic Committee (IOC) had changed its conditions regarding sponsor naming rights, which necessitated additional compensation for RIL.
However, IOA treasurer Sahdev Yadav expressed concern that the executive council and sponsorship committee were not consulted during the amendment process. He questioned the authority of the president to make such changes and alleged that the agreement had led to a significant financial loss for the IOA.
The CAG’s report has raised serious questions about the transparency and accountability of the IOA’s sponsorship agreements. It remains to be seen how the IOA will respond to the allegations and whether any corrective measures will be taken to prevent similar irregularities in the future.
