A M Films didn't have director when CWG OC accepted its bid

Until 48 hours before Commonwealth Games Organising Committee (OC) chairmanSuresh Kalmadi  directed his subordinate M Jeychandren to release of payments for A M Films UK Limited, the company did not have any director or employees, according to documents with TOI.

The decision of the OC to hire this little-known firm to supply outdoor display units for the October 29, 2009, Queen's Baton Relay inauguration in London without any proper contract and subsequent release of payment is now under investigation.

A key figure emerging in the probe is Ashish Patel — better known as Ash Patel — the only shareholder of A M Films and several other obscure firms. In fact, he has been a director or secretary in seven different companies, but A M Films seems to be the only functional firm.

Documents from the Companies House, the UK government's official registrar of companies, show that A M Films UK Ltd was without any director for a period beginning September 9 to October 22. It had a paid-up capital of £1 and one share held by Ash Patel. In other words, it was pretty much a one-man shop.

Ash Patel doubled up as both company secretary and director. It was on March 14, 2010, a second person appears on the company's documents — Ravilal Naran Bhanderi who is shown as marketing director. Strangely, on the same day, Ash Patel resigned as the director.

On October 22, 2009, just seven days before the QBR London function, Ash Patel joined back the company as its sole director. In the one-month period that the company did not have any employees or director, A M Films was not dormant — it had submitted a bid on October 2 to the OC. The bid was addressed to Sanjay Mohindroo, now suspended OC top official, who appears to have had a familiar relationship with Patel.

On October 23, a day after Patel re-joined A M Films, Mohindroo wrote out a two page note selecting A M Films for the contract. "It is seen that the rates of M/S AM Films are the lowest... It is therefore recommended that the contract may be awarded to M/S A M Films UK Ltd. Approval of chairman OC (Kalmadi) has been solicited," Mohindroo's note said.