Corruption in awarding contracts in Commonwealth Games (CWG) has "tarnished" the image of the country, a Delhi court noted today while dismissing the bail applications of two former Organising Committee officials associated with the mega event.

Special Judge A S Yadav said that the irregularities in conducting the Games, highlighted in the media, were being observed by the people all over the world.

The court made the observations while declining the bail plea of former senior CWG officials T S Darbari and M Jayachandran, close aides of OC chairman Suresh Kalmadi.

"Every day and night, the matter was being reported in newspapers all over the world about corruption in awarding various contracts during the CWG. It has definitely tarnished the image of the country," the court said.

The court noted that the contract for hiring taxis in London during the Queen's Baton Relay function was awarded on forged documents, leading to a loss to the exchequer.

"The part of the CWG function took place at London regarding handing over of Queen's Baton and the very contract of hiring of the vehicles was awarded on forged and fabricated documents at higher rates thereby causing losses to the Government of India," it said.

Darbari and Jayachandran were arrested by the CBI on November 15 and 21 respectively.

Rejecting their plea, the court noted that the accused even "forged" emails for justifying their decision to award contract to the London-based firm.

The accused are facing charges of causing losses to the exchequer in award of contract to the tune of Rs 1.55 crore with regard to QBR on October 29, last year in London before the mega event.

The accused claimed that it was not they but rather a high-powered committee that took the decision with regard to the award of the contract to A M Cars and Vans Hire Ltd but the court was not convinced by this.

The court also referred to various documents seized by the CBI to say, "it is evident from the note that accused Darbari discussed the matter with Jayachandran as well. The advance payment was released by Jayachandran."

The case against them has been registered under different Sections of IPC and Prevention of Corruption Act.

The court, meanwhile, extended the judicial custody of Darbari, Jayachandran and another accused Sanjay Mahendroo to December 24.

Mahendroo, also arrested on November 15, has so far not filed a bail application.