Caught in a web of corruption scandals and under intense pressure from the government, the Commonwealth Games Organising Committee was today forced to form a three-member panel to probe allegations of irregular financial transactions with a little-known UK-based company.

The decision to form the panel came after Kalmadi met foreign minister S M Krishna amid speculation that the letters recommending the UK-based company -- AM Cars and Vans -- from the Indian high commission could have been doctored.

Kalmadi had presented e-mails from the high commission's protocol division to insist that the company was recommended to the OC ahead of Queen's Baton relay in London.

But the ministry of external affairs has apparently questioned the authenticity of these mails.

"Organising Committee Commonwealth Games Delhi 2010 chairman Suresh Kalmadi has set up the panel which includes Jarnail Singh, OC chief executive officer, G C Chaturvedi, special director general- finance, and Gurjyot Kaur, chief vigilance officer," OC secretary general Lalit Bhanot told reporters here.

"The Committee will look into the issue of money being paid to AM Car and Van Limited and the ministry of external affair's contention about the letters issued by the Indian high commission in the United Kingdom," he said.

Kalmadi has his back against the wall with allegations of widescale corruption and shoddy construction work at the Games' venues also being highlighted by the Central Vigilance Commission.

Bhanot said the media reports about corruption have been taken note of by OC and it has therefore formed a panel to investigate all the allegations.

The UK-based AM Films was allegedly paid lakhs pounds for its "services" during the baton relay but Kalmadi though admitting that there was no contract with the company has denied any irregular financial transactions.

Bhanot confirmed that Kalmadi met Krishna today.

"Mr Kalmadi met him. He (Kalmadi) sought time yesterday, so he went to see him and he discussed the issue," he said.

Asked whether Krishna had told Kalmadi that the e-mails were doctored, Bhanot said, "I am not aware what they have discussed."

Bhanot also acknowledged receiving a letter from the Sports Ministry seeking the removal of two OC officials -- T S Darbari and Sanjay Mohindroo, both of whom are under the scanner for alleged corruption

"It's true that secretary sports has sent a letter to Chairman OC and they have shown concerns abut Mr Darbari and Mahendroo," he conceded.

The OC secretary general also revealed that Mahendroo had quit his post.

"I don't remember the date but Mahindroo resigned long time back. Darbari is still with us," he said.

Bhanot said the committee will also probe the payouts to Melbourne-based company Sports Marketing and Management, which was hired for bringing in sponsorship for the Games.

"This is for the QBR launch, overlay and the SMAM agreement. Very soon a report will be submitted and action will be taken on the basis of that," he said.

Related reports:

Govt serious about CWG corruption cases: Gill

Sports Minister M S Gill today said that if fresh cases of corruption related to Commonwealth Games come up in future even after the end of the October 3-14 megaevent, the government will investigate into the charges and ensure "prompt and appropriate" action against the guilty.

"If things come in the future it will be looked into, after all October 16 is not the end of the show. I can assure you that the government is serious in this matter," Gill told reporters outside the Parliament.

"my take is very simple -- the ministry has been very clear in the last two years that any complaint of any kind will be dealt with very promptly and taken up with the appropriate authority," he said.

Replying to a volley of questions on cases of corruption in various Commonwealth Games related projects, Gill said, "What is in the papers is there, perhaps...there is nothing more to say on this."

To a poser on whether the government has recommended action against the alleged corrupt officials, he said the Sports Ministry has taken such cases into consideration and has been pressing for prompt action.

On the poor construction work of stadiums, Gill said as far as his ministry and the Sports Authority of India is concerned, the Central Public Works Department is the executing agency.

"In the last two years, we have given dates of starting and dates of completion (of work). They are ready...Nehru stadium, swimming stadium...I am aware. You bring up minor flaws in heavy rain but do look at the total picture in all fairness to the country and to us," he said.

The Minister said the Organising Committee has started taking over the Games venues and fine tuning of the stadiums would continue.

"The SAI and CPWD will be there to assist the OC stadium managers. The stadia will be ready and within two weeks you will begin to see," he said.