IOA Defends Against CAG Report on RIL Sponsorship, Refutes Financial Loss Claims

The Indian Olympic Association (IOA) has refuted claims by the CAG that it incurred a financial loss of Rs 24 crores due to sponsorship agreements with Reliance Industries Limited (RIL). IOA President PT Usha maintains that the renegotiation of terms was in the best interests of all parties involved.

The Indian Olympic Association (IOA) has dismissed allegations of incurring a Rs 24 crore loss linked to Reliance Industries Limited's (RIL) sponsorship, as suggested in a report by the Comptroller and Auditor General (CAG). IOA President PT Usha responded formally to the CAG's inquiry, insisting no financial loss occurred.

Usha clarified the issue originated from a flaw in the Request for Proposal (RFP) crafted by the prior IOA administration in 2022. It lacked a critical caveat related to naming rights for a National Olympic Committee (NOC) House, which RIL acquired. The CAG report's interpretation was countered by the IOA, stating the agreement was renegotiated to safeguard financial measures.

As new IOC guidelines barred sponsors from NOC House naming rights at the Paris 2024 Games, the IOA was compelled to renegotiate with RIL. IOA's compromise involved adjusting the hosting fee while protecting its cash flow, ensuring key events were included. The actions, backed by legal counsel, were in IOA's best interest, Usha emphasized.

(With inputs from agencies.)