In a communication to the OC last month, the Comptroller and Auditor General (CAG) has said that some of the items for the Games were procured at prices higher than the market rates, said sources in the know.
The OC had overstated rates of the items contracted by allowing some sellers to form a cartel, which then put in costlier bids, said the CAG memo.
The two-week long Commonwealth Games, held here between October 3-14, reportedly cost the nation Rs 70,000 crore.
CAG is vetting the expenditures incurred on different CWG related projects.
The OC is in the thick of allegations of corruption, ranging from favouritism in award of various contracts to expensive hire of training equipment and inflation in costs of building contracts.
A host of other agencies like the Income Tax department, Enforcement Directorate and Central Vigilance Commission are investigating the CWG expenditures.
In November, CAG Vinod Rai had said that his department is conducting a broad-based audit probe into the expenditure related with the CWG and would complete the enquiry by January-end.