CBI probe set to begin in HAL-Rolls Royce bribery scam

The agency had received a complaint from the Defence Ministry to look into the supply of aircraft engines to HAL, and is scrutinising the documents, highly placed sources said.

hidden March 09, 2014 11:12:05 IST
CBI probe set to begin in HAL-Rolls Royce bribery scam

The Central Bureau of Investigation (CBI),  in the next couple of days, will register a preliminary enquiry into the alleged bribery in a Rs 10,000 crore deal for supply of aircraft engines to state-owned Hindustan Aeronautics Limited by London-based Rolls Royce.

CBI probe set to begin in HALRolls Royce bribery scam

AK Antony. Reuters

The agency had received a complaint from the Defence Ministry to look into the supply of aircraft engines to HAL, and is scrutinising the documents, highly placed sources said.

Defence Minister A K Antony has ordered a CBI probe into the allegations.

They said a preliminary enquiry may be initiated by Wednesday on the basis of which a decision could be taken to register the FIRs in the cases.

"We will co-operate fully with the regulatory authorities and have repeatedly made clear that we will not tolerate misconduct of any sort," a Rolls-Royce spokesman has said.

Sources said the role of a London-based arms dealer, who had been probed by the agency in different cases, is also under scanner and if evidence of his role emerges, he might be made an accused in the FIRs.

They said the arms dealer who is already in the list of "undesirable contact" issued by the agency to government officials has been probed in the past but since no evidence had emerged the cases were closed.

The scandal relates to deal in the supply of engines for Hawk trainer and Jaguar fighter aircraft between 2007 and 2011 and an internal probe by the vigilance wing of HAL has prima facie established the charges, the sources said.

The allegations surfaced in the form of a letter received by HAL recently claiming that bribes were paid to officials in HAL and other departments concerned to bag contracts.

The investigations by CVO have prima facie found that the company allegedly violated several of the contractual obligations with HAL between the period of 2007-11, when these bribes were allegedly paid.

The company has supplied engines for the aircraft being manufactured by the HAL for the Indian Air Force.

The issue came to light after HAL issued guidelines to its vendors and suppliers to ensure probity in its transactions as part of its integrity pact signed with them.

Rolls Royce, in a letter written to HAL in December last, had said that it had employed a Singapore-based person identified as Ashok Patni and his firm Aashmore Private Limited as "commercial advisor" in India, providing sales and logistical support, local business support and "strategic advice."

The firm also told HAL that it had severed ties with Aashmore and its owner in 2013.

The commissions paid by the firm are in violation of the procurement rules in India which prohibits hiring of middlemen or commission agents while transacting deals with the Defence Ministry.

PTI

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

'Bloodstains on lathis, no CCTV footage': P Jayaraj and Fenix thrashed all night by Sathankulam Police personnel, finds Judicial Magistrate’s report
India

'Bloodstains on lathis, no CCTV footage': P Jayaraj and Fenix thrashed all night by Sathankulam Police personnel, finds Judicial Magistrate’s report

Mentioning Head Constable Revathy's statement in a four-page report to the Madras High Court Madurai Bench, the Judicial Magistrate probing the deaths said she feared to receive threats if she revealed the facts. In her statement, Revathy told the JM that the two persons were 'beaten up the entire night by police personnel there (Sathankulam PS) using lathis.'

Suspended IAS officer BM Vijay Shankar found dead at his home in Bengaluru; case of unnatural death registered, probe underway
India

Suspended IAS officer BM Vijay Shankar found dead at his home in Bengaluru; case of unnatural death registered, probe underway

Vijay Shankar's body has been taken to the Victoria Hospital's morgue, where an autopsy will be performed.

Babri Masjid demolition case: CBI court directs NIC to arrange video conferencing to record statements of LK Advani, eight other accused
India

Babri Masjid demolition case: CBI court directs NIC to arrange video conferencing to record statements of LK Advani, eight other accused

A Special CBI court hearing the Babri mosque demolition case on Saturday directed the National Informatics Centre (NIC) to make arrangements for video conferencing to record statements of nine accused, including former deputy prime minister LK Advani.