The report, however, noted that the government could retrieve the situation "at the last moment" and made the games "successful".
"The committee appreciate the Sports Secretary's free and frank testimony that there was a complete management failure...the government came to the brink of defaulting on the games which would have created a national shame across the world," the report added.
Underlining that delays occurred in the initial stages, the panel said as a result decisions were taken in haste and contracts were awarded on the basis of single tenders and negotiations at some times.
The report noted "undue concessions" to a contractor, "unwarranted relaxation" to a private company, and dilution of criteria to thwart competition in various instances.
It said there was a "lack of transparency, fairness and competition in bidding".
Outgoing Public Accounts Committee Chairman KV Thomas, had said on Tuesday that there was nothing against former Prime Minister Manmohan Singh in the report.