Speaking during Question Hour, Naik assured that a House committee would be formed to investigate the allegations that the travel contract was awarded without any tender and that an additional payment of Rs 1.7 crore was made to the company for décor.
The issue was raised by Independent legislator Vijai Sardesai who alleged a large-scale scam in organising IFFI by Entertainment Society of Goa (ESG). “The Comptroller General of India (CAG) has castigated ESG for irregularities and a police complaint in this regard has also been filed with Panjim police station,” he said.
The MLA pointed out that Mumbai based TPT Production Pvt Ltd was awarded the décor contract by ESG, which after negotiation was fixed at Rs 4.53 crore. However, post the festival, the company submitted a bill of Rs 5.61 crore, which is Rs 1.07 crore more than the tender.
“I would like to know whether the government would be making this additional payment,” he asked.
The minister assured to investigate the additional billing.
Sardesai also informed the House that the event management agency for IFFI 2014, was awarded a similar tender of décor for another Rs 62 lakh. “This is clear duplication of work. This is a major scam,” he said.
The MLA also pointed out that the travel agent Purshottam Bhagwan, who was awarded the tender for IFFI 2013, was reappointed for the 2014 festival, despite many other travel agents offering more discounts on the tariff. “No procedures were followed,” he alleged adding that the travel agent is a defaulter to Air India of Rs 1.24 crore and has also been blacklisted.
As per the reply tabled on the floor of the House, the Minister has admitted that no tendering of travel contract resulted into additional expenditure of Rs 10.04 lakh.

