After ordering a CBI probe into allegations of kickbacks and unauthorised use of an outside “commercial adviser” by Rolls-Royce in contracts with Hindustan Aeronautics Ltd. (HAL), the Defence Ministry on Monday put on hold all deals with the British engine manufacturer till the completion of the investigation.
Rolls-Royce contracts, worth nearly Rs. 10,000 crore for the supply of aircraft engines to HAL for its trainer aircraft during 2007-2011, are under a cloud.
The controversy evoked sharp reaction from political parties with CPI(M) general secretary Prakash Karat tweeting that as in the Agusta VVIP chopper scam, the UPA government was forced to order a CBI probe only after foreign governments acted against arm dealers.
“The probe progresses only if it is monitored by the courts. The Congress government always hides the scams,” spokesperson Prakash Javadekar said.
Rolls-Royce said it would cooperate with the authorities and had repeatedly made clear that “we will not tolerate misconduct of any sort.”
