Tatra-army deal: CBI to quiz BEML boss Natrajan on Tuesday

Just a day after the Enforcement Directorate booked Vectra boss Ravi Rishi for money laundering, the  Central Bureau Of Investigation on Saturday asked BEML (Bharat Earth Movers Limited )  chief VRS Natarajan to appear before the agency on Tuesday in connection with alleged irregularities in Tatra-BEML deal.

The investigation agency wants  Natarajan to clarify his stand on certain decisions that were taken by the BEML while signing memorandum of understanding  with Czech manufacturer Tatra.

The agency had filed an FIR against BEML and Vectra Group chief Ravi Rishi in connection with the deal. Rishi was quizzed earlier in connection with BEML’s Rs 5,000 crore deal with Czech truckmaker Tatra, the company in which Vectra has a major stake. Moreover, the The ED is investigating if Tatra sold its trucks to the army at exorbitant rates. The army has bought 7,000 Tatra trucks since 1986.

Natarajan had earlier denied that he received complaints about either the acquisition or the performance of Tatra trucks. He said he could not understand why the Army Chief might think of them as “sub-standard”.

The central probe agency is likely to ask him the reasons for allegedly renewing the supply contract with Tatra Sipox UK in 2003 much before it was required in 2006.

Natarajan may also be asked details of payments made to Tatra Sipox UK and procurement process of equipment used in assembling these trucks.

In 1997, Tatra Sipox UK had signed the truck supply deal with BEML which was in alleged violation of defence procurement rules stating that procurement should be done directly from original equipment manufacturer only, the sources said. The CBI has alleged that since Tatra Sipox UK was not the original manufacturer of these all-terrain trucks, the rule that defence procurements should be made from original manufacturer was violated.