CBI kick-starts probe in Embraer aircraft scam

September 17, 2016 12:52 pm | Updated November 17, 2021 06:26 am IST

Institutes preliminary inquiry against unknown officials.

The DRDO signed a $208-million deal with Embraer for three ERJ-145 aircraft in 2008.

The DRDO signed a $208-million deal with Embraer for three ERJ-145 aircraft in 2008.

The Central Bureau of Investigation (CBI) on Saturday instituted a preliminary inquiry against unknown officials of the Defence Ministry and others, in connection with the allegations of corruption in the purchase of three Embraer aircraft in 2008.

“The Preliminary Enquiry has been registered on a reference from the Defence Ministry. The Embraer contracts include the one with the Defence Research and Development Organisation (DRDO) in 2008,” said a CBI official.

It has been alleged that the Brazilian supplier had taken the services of middlemen, said to be based in the U.K. to strike deals for sale of aircraft in India and Saudi Arabia. A joint committee, set up the Air Force and the DRDO, had short-listed Embraer.

The DRDO had signed a $208-million deal with Embraer for three ERJ-145 aircraft for a project to build indigenous Airborne Early Warning and Control Systems for the Air Force.

A joint committee, set up the Air Force and the DRDO, had short-listed Embraer after evaluating several options. Following the allegations, first reported last week by the Brazilian newspaper, Folha de Sao Paulo, the DRDO has sought an explanation from the Embraer.

The Defence Ministry, which had asked for a probe by the CBI and the Enforcement Directorate (ED), has also written to the Ministry of External Affairs to pursue the matter with the respective countries through Indian missions.

The agency institutes preliminary enquiry to determine whether there are prima facie grounds to register a regular case for further investigation and prosecution of the accused persons. The CBI may collect more documents from the Defence Ministry and summon witnesses and suspects.

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