Defence Ministry seeks CBI probe into $208-mn Embraer deal

September 14, 2016 11:15 am | Updated November 17, 2021 06:26 am IST - New Delhi

Last week, Manohar Parrikar indicated that he might seek the agency's help if deal was of "criminal nature"

India signed a $208-million deal in 2008 for procuring three aircrafts.

India signed a $208-million deal in 2008 for procuring three aircrafts.

The Defence Ministry has asked the Central Bureau of Investigation to probe allegations of corruption in the purchase of three aircraft from Embraer following reports of investigations in Brazil and the U.S.

In 2008, the Defence Research and Development Organisation (DRDO) signed a $208-million deal with Embraer for three ERJ-145 aircraft to build indigenous Airborne Early Warning and Control Systems (AEW&C) for the Indian Air Force (IAF).

The DRDO has already sought explanation from Embraer within 15 days on the issue.

Defence officials said while that would go on separately, the Defence Ministry has decided to refer the case to the CBI. “Information will also be sought through diplomatic channels from Brazil and the U.S.,” an official said on Wednesday.

Letter to MEA

The Defence Ministry has written to the Ministry of External Affairs to pursue the matter through Indian missions in the respective countries.

Last week, media reports in Brazil revealed that the aircraft maker was under investigation by the authorities in Brazil and the U.S. for alleged payment of bribes to secure contracts in several countries.

Explaining the process of shortlisting of the Embraer for the AEW&C project, officials said it was done by a joint committee after evaluating several options. “A committee was set up by IAF-DRDO to identify suitable aircraft which shortlisted Embraer,” the official added.

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