Already engulfed in a series of corruption charges, the CWG Organising Committee faced more problems with its treasurer Anil Khanna resigning in the wake of allegations that his son's firm secured the contract for laying synthetic courts at the tennis stadium.
OC sources said Khanna, also the All India Tennis Association secretary, put in his papers on moral grounds in view of the allegations.
Khanna's resignation came hours before the OC's all-powerful executive board's emergency meeting, convened to discuss the corruption scandal that has rocked the October 3-14 Games.
The sources said that Khanna resigned after questions were raised that there could be a conflict of interest as his son Aditya's parent company, Rebound Ace, had got the contract for laying 14 synthetic surfaces at the R K Khanna Tennis Stadium.
Aditya is the CEO of the Indian branch of the Australian-based firm.
Reports also said that top Indian tennis players are unhappy with the re-laid synthetic surface, which is believed to increase injury risk and rejected by Australian Open.
Khanna though said he was not involved in granting the contract to the Australian firm.
Khanna said he was in no way involved in the contract nor was he the treasurer when the deal was finalised, but took the step to quit to clear himself of any possible corruption taint.
"I don't want to be seen as somebody associated with corruption or financial malpractices. I joined the OC in January 2010 after Mr Mattoo resigned and by that time the contract was done. So I don't have a conflict of interest in the deal, as it was over by December 2009," he told a press conference.
Khanna's dramatic resignation came hours before the OC's emergency Executive Board meeting and was widely interpreted as a move to put pressure on chairman Suresh Kalmadi to also step down.
He was among those who had pressed for the board meeting along with vice-chairman Randhir Singh and senior IOA vice-president V K Malhotra.
Defending himself, Khanna said his son's company, Rebound Ace India, has nothing to do with Rebound Ace Australia, which got the contract to lay 14 synthetic surfaces at the R K Khanna Stadium, the venue for the tennis event.
"Rebound Ace India is an absolutely separate company. It is just a distributor of Rebound Ace Australia. It is not a subsidiary nor Rebound Ace Australia has stake in it. My son's company did not get any paisa. So where is the impropriety?" he asked.
Khanna said he was mulling to "disassociate from the OC" after the corruption allegations surfaced.
"My family was not happy when I joined the OC and I had been thinking of disassociating from the OC after the (corruption) allegations have come out," he said.
"I have nothing to hide. My conscience is clear. I don't want to be seen as somebody associated with corruption or financial malpractices. It is not about treadmill which was purchased at Rs 5 or 9 lakh. We are saving Rs 40-50 lakh by aying the surfaces with a low budget," he added, apparently taking potshots at those clinging to their posts after the series of corruption allegations.
Asked whether the OC could reject his resignation, Khanna said, "I have written to the OC that a new treasurer be appointed. It (the resignation) will have to be accepted."