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Embraer deal: CBI analyzing reference from MoD into corruption allegations

The Central Bureau of Investigation has started analyzing the reference received from the Defence Ministry over allegations of corruption in the purchase of three Embraer aircraft for Defence Research and Development Organisation in 2008.

India TV Business Desk, New Delhi [ Updated: September 15, 2016 19:02 IST ]
Embraer deal
Embraer deal

The Central Bureau of Investigation has started analyzing the reference received from the Defence Ministry over allegations of corruption in the purchase of three Embraer aircraft for Defence Research and Development Organisation in 2008.

Agency sources said officials are going through the reference and any decision to start a probe in the matter will be taken soon after analyzing all the documents.

If the agency is satisfied that it has enough prima facie evidence to initiate an FIR, it will start or else, it might register a preliminary enquiry to gather enough material for registering a regular case, they said.

The allegations of corruption in the deal surfaced in a Brazilian paper which alleged that the Embraer had used the services of middlemen to clinch the deal of aircraft supply in Saudi Arabia and India.

According to defence procurement rules of India, middlemen are strictly barred in such deals.

Leading Brazilian news paper 'Folha de Sao Paulo' had reported last week that Embraer allegedly paid commissions to a UK-based defence agent to finalize the USD 208 million deal with India.

DRDO had purchased three aircraft from the company in 2008 and customized them for serving the air-borne radar system known as airborne early-warning and control systems or AWACS for the Indian Air Force.

The newspaper had further claimed that US Justice department was scrutinizing Embraer's deal with India. The company has been under investigation by the US Justice Department since 2010 when a contract with the Dominican Republic raised the Americans' suspicions, it said.

Since then, the investigation has widened to examine business dealings with eight more countries.



Following the allegations, the Defence Ministry referred the matter to CBI asking it to probe the allegations.

Defence minister Manohar Parrikar had sought a report from DRDO following which the matter was referred to CBI.

"If there is a criminal angle, then we can give it (probe) to CBI. The Defence Ministry cannot investigate criminal angle," he had said when asked whether the probe would be handed over to CBI.

DRDO has also sought an explanation from Embraer.

(With inputs from PTI)

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