The CBI has registered a regular case naming an NRI defence consultant as an alleged recepient of $5.76 million from Brazilian firm Embraer as commission to bag the deal for sale of three aircraft to the Defence Research and Development Organisation (DRDO) in 2008.
Following a reference from the Ministry of Defence, the CBI, in September, initiated a preliminary enquiry (PE) into the bribery allegations.
The CBI has named defence consultant Vipin Khanna, whose name also figured in the food-for-oil scam, as accused in the case. The Commission was allegedly paid to him in 2009. A Singapore-based company has also been named.
The CBI suspects that the money was transferred through the Singapore company and diverted via various countries, including Switzerland and Austria.
PTI adds
The deal for three aircraft, which were to be used by the DRDO for air-borne radar systems, was inked in 2008 with Embraer.
A Brazilian newspaper had alleged that that the company took the services of middlemen to clinch deals in Saudi Arabia and India.
According to the defence procurement rules of India, middlemen are strictly barred in such deals.
Leading Brazilian newspaper Folha de Sao Paulo had reported that the company allegedly paid commissions to a UK—based defence agent to finalise the deal with India.
The DRDO purchased the three aircraft in 2008 and customized them for hosting airborne early-warning and control systems or AWACS for the Indian Air Force.
The company has been under investigation by the US Justice Department since 2010 when a contract with the Dominican Republic raised the Americans’ suspicions, the report said.
Since then, the investigation has widened to examine business dealings with eight more countries.
After the PE was registered, Embraer issued a statement, saying: “Since 2011, Embraer has publicly reported that it has been conducting an extensive internal investigation and cooperating with the authorities on investigations regarding alleged violations of the FCPA.
“The company voluntarily expanded the scope of the investigation, systematically reporting the progress of the case to the market. ”
“The company is not party of the legal proceedings in Brazil. Therefore, it does not have access to the information contained therein,” it had said.
