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The Central Bureau of Investigation (CBI) has been given the go-ahead by the Defence Ministry to investigate the role of former “top-level officials” of the Ministry, as well as the Defence Research and Development Organisation (DRDO) in the Embraer aircraft deal.
Apparently, the instruction to investigate the former MoD (Ministry of Defence) and DRDO officials was given to the CBI last month, when the case was handed over to the investigating agency.
Incidentally, it was the government that had brought the role of “top-level officials” in the deal to the CBI’s attention, sources told BusinessLine on condition of anonymity.
When the deal was signed in 2008, the Chief of the Indian Air Force (IAF) was SP Tyagi, whose role in the AgustaWestland VVIP chopper scam is also under investigation by the CBI. Sources said that soon the names of several other “key officials” are likely to come under the CBI’s lens.
Spokespersons of both the MoD and CBI refused to comment on this.
$5.76-million commissionMeanwhile, the CBI registered a case on Thursday against UK-based middleman Vipin Khanna, who allegedly facilitated the deal, officials said.
It found that Khanna received $5.76 million from Embraer as commission so that the agreement could be signed to purchase the three EMB-145 aircraft from the São Paulo-based firm.
The $210-million deal was signed in July 2008, while the decision was taken in 2006.
Khanna, who was paid through a Singapore-based company, allegedly used the money to “influence” the MoD and DRDO officials. The CBI has also written to the Bureau of Immigration for a Lookout Circular against Khanna.
Following the signing of the purchase agreement, the aircraft’s radar was customised for the airborne early-warning and control system project under the leadership of DRDO Director-General S Christopher.
Officials added that an initial probe by the CBI revealed that following Khanna’s “mediation”, the proposal for purchase of the aircraft on a single-vendor basis was moved.
It is also learnt that a Singapore-based firm had secured the contract to supply the planes. This firm was also allegedly instrumental in siphoning off funds to other countries.
On Thursday, the investigating agency had conducted raids on Khanna’s residence and farmhouses in Delhi.
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