Vectra speaks out: Defends legality of Tatra deal

Vectra Ltd, the company headed by London based businessman Ravi Rishi, has refuted allegations that Tatra Sipox (UK), a company in which Vectra Ltd has a 100 per cent stake, is not the original manufacturer of Tatra trucks, and was merely a ’trading company’. It also defended the legality of the Tatra - BEML deal, and added the high price of the truck was justified by its exceptional performance. [caption id=“attachment_275008” align=“alignleft” width=“380” caption=“Vectra has defended the Tatra deal: Reuters”]  [/caption] Ravi Rishi is at the heart of the Tatra truck controversy and has been questioned by the CBI six times already. The allegation is that the rules of procurement were violated as BEML placed the order of Tatra trucks with Tatra Sipox (UK) which is not the original manufacturing company. Army chief General VK Singh also filed a written complaint with the CBI on Wednesday in which he said that in September 2010, Ravi Rishi had offered him Rs 14 core bribe through former lieutenant general Tejinder Singh to clear the order of sub- standard Tatra trucks. Citing the fact that Tatra Sipox (UK) provided a transfer of technology to Bharat Earth Movers Limites (BEML) a defence public sector unit (PSU), Vectra said that it was clearly more than a ‘trading company’. Vectra said that Tatra trucks are manufactured in two plants- Tatra a.s. which is the Czech Republic based company that makes cabins and engines, and Tatra sipox a.s., the Slovakia company that makes its axles and chassis. The London based Tatra Sipox (UK) procures the parts of the truck from both plants and then supplies them to BEML. Vectra also said that because Tatra Sipox (UK) sold the Tatra truck to BEML and not directly to the ministry of defence, there was also no violation of any law. The company also refuted charges that Tatra trucks were sold at three times its original price of Rs 40 lakhs, which led to an estimated loss of Rs 750 crore to the exchequer, saying that they were dealing with BEML and the price agreed to between BEML and the MOD was not controlled by Tatra. “Additionally at no time were full trucks sold to BEML. The parts and components sold to BEML were as per normal company prices,” said Vectra Ltd. The company added that Tatra was never known to be a cheap truck and its high price was justified by its performance.