Beleaguered Indian Olympic Association (IOA) chief Suresh Kalmadi, who is in the eye of the storm over corruption in the Commonwealth Games 2010, faced further setback Tuesday after the External Affairs Ministry is supposed to have rejected his claims regarding the UK money scam.

While Kalmadi claimed publicly that the protocol division of the Indian High Commission in London in an e-mail, had cleared AM Films to do business with the Commonwealth Games Organizing Committee, the High Commission and the Ministry of External Affairs have denied giving any such sanction.

Kalmadi, who met External Affairs Minister S.M. Krishna Tuesday, was given a copy of the e-mail that was sent by the Ministry to the Commonwealth Games Organizing Committee regarding preparations for the Queen's Baton Relay.

Contradicting Kalmadi's version, the Ministry's e-mail had no mention of the UK-based firm.

Apparently, the Games management is under a cloud.

Even the Sports Ministry has asked for the removal of his close aide T.S. Darbari from the organizing committee.

The Ministry in a note sent to Kalmadi asked for the sacking of Darbari, who is currently the Deputy Department General of the Games panel.

Darbari came under the scanner after reports emerged about his association with AM films, a little-known UK firm that was paid lakhs of pounds by the organizing committee for its "services" during the London leg of the Queen's Baton relay.

Later investigations have revealed that AM Films and its sister concerns were dubious but were paid 250,000 Pounds without any written contract.

Adding credence to the doubts about the company credentials was the fact that it had faced liquidation in July 2010.

Meanwhile, apparently embarrassed by alleged corruption in Commonwealth Games, the Indian government Monday turned down the plea of Indian Olympic Association to bid for 2019 Asian Games, highly placed sources said.

"The central government is very much worried about the corruption surrounding the Commonwealth Games which is to start from October 3 ths year. The budget for the mega sporting event is said to have risen by 17 times amid allegations of financial corruption.

"Moreover, it is also worried about the preparations which has been quite lax with little over two months left before athletes from nearly 71 nations land here. So, the government has refused the IOA's plea to bid for 2019 Asian Games," the sources said.