Official sources said the turning point was the CBI's move of registering an FIR in the Queen's Baton Relay naming former senior officials of the Organising Committee of the Games besides unknown officials.
With the CBI registering a FIR, it almost looks certain that the government will invoking the PMLA.
While the Enforcement Directorate is probing the officials under the Foreign Exchange Management Act, PMLA would allow them to go in for a detailed investigation which would involve arrests as well as attachment of properties.
At present, a PMLA case can be registered against an individual or a company only after a criminal FIR is registered either by the police, vigilance department or other investigative agencies like the CBI.
The government is looking at the possibility of amending the PMLA and by next year the necessity of a FIR could be done away with, sources said.
The ED has already questioned OC officials T S Darbari, former Joint Director General and Sanjay Mahendroo, former Deputy Director General, whow ere arrested by the CBI yesterday.
The ED is likely to soon issue summons to more OC officials.