The Central Bureau of Investigation is examining the reference from the Defence Ministry seeking an inquiry into allegations of corruption in the purchase of three Embraer aircraft for the Defence Research and Development Organisation (DRDO) in 2008.
“Documents shared by the Defence Ministry are being analysed to determine whether there are any prima facie grounds to initiate formal investigations,” said a CBI official.
It has been alleged that the Brazilian supplier had taken the services of middlemen to strike deals for the sale of aircraft in India and Saudi Arabia. Defence procurements through middlemen are banned in India.
$208-million dealThe DRDO had signed a $208-million deal with Embraer in 2008 for three ERJ-145 aircraft to build indigenous Airborne Early Warning and Control Systems for the Air Force. A joint committee set up by the Indian Air Force and the DRDO had shortlisted Embraer for procurements after evaluating several options.
According to Brazilian newspaper Folha de Sao Paulo , Embraer had also come under the scanner of the United States Justice Department since 2010 “when a contract with the Dominican Republic raised the Americans’ suspicions.”
DRDO seeks explanationFollowing the allegations, the DRDO sought an explanation from Embraer within 15 days on the issue. The Defence Ministry, which asked for a probe by the CBI and the Enforcement Directorate, has also written to the Ministry of External Affairs to pursue the matter with the respective countries through Indian missions.
