Embraer deal: CBI books MoD officials, NRI, 2 firms

Syed Ali Ahmed

Tribune News Service

New Delhi, October 21

The CBI today registered a case against unknown officials of the DRDO, Ministry of Defence, a United Kingdom-based NRI, Vipin Khanna, two foreign-based firms. Besides, searches were conducted at four places in the Capital to investigate the involvement of a middleman to procure three modified EMB-145 aircraft of Embraer.

The CBI has also written a letter to Bureau of Immigration for detention of Khanna, who allegedly played the role of middleman to get signed the agreement for allotting the contract to Embraer, a Brazilian aircraft manufacturing company, to supply the aircraft to DRDO and allegedly received $5.7 million approximately to influence the DRDO and defence officials, sources said.

The CBI also booked two foreign-based firms – Embraer in Brazil and Singapore-based Interdev Pet owned by Khanna —for cheating and under the Prevention of Corruption Act as in India employing a middleman was not allowed, CBI spokesperson Devpreet Singh said.

The CBI had registered a preliminary investigation on September 16 after the Defence Research and Development Organisation (DRDO) and Ministry of Defence asked it to enquire into the allegations regarding employment of an agent for facilitating the contract for procurement of three EMB-145 aircraft.

It was further alleged that as a result of mediation by the middleman, the officials of DRDO/Ministry of Defence, moved a proposal for purchase of three EMB-145 aircraft on a single vendor basis and the firm secured the contract for supplying the aircraft.

A purchase agreement was allegedly signed between Embraer and DRDO on July 3, 2008 for supply of the aircrafts for a consideration of $210 million approximately.