SMAM said it has not received any payment from the organising committee since being appointed as a service provider in 2007 despite generating record sponsorship revenues in Commonwealth Games history, around Rs 400 crores ($85 million).
Local newspaper The Times of India reported that the agency had failed to secure any sponsorships apart from those by state-owned companies.
It also said that the country’s finance minister ordered that no commission should be paid for any contribution made by public-sector undertakings (PSUs), which triggered lead sponsor Indian Railway’s suspension of a Rs 100 crore ($30 million) payment.
“Every sponsorship committed to the Delhi Games has relied on services provided by SMAM to the OC and/or the sponsor, regardless of whether the sponsor is a PSU or from the private sector,” read a statement released by the agency.
Nevertheless, following “the recent decision to encourage sponsorships from PSUs as part of their corporate social responsibility activities” and “in the interest of helping Delhi stage successful Games” SMAM offered the OC to give up its contracted remuneration on such sponsorships and will only charge a management service.
