The CBI has arrested three persons including two former directors of Society for Applied Microwave Electronics Engineering and Research, a central government undertaking, in connection with alleged "criminal irregularities" in supply of modem to Akash missile project.
Cases were filed on Friday under different sections against former directors of SAMEER, S Karunakaran and KR Kini, after the Anti-Corruption Bureau (ACB) had filed cases under different sections of IPC and Prevention of Corruption Act (PCA), CBI said in a statement on Sunday.
It added that P Rathinavel, Director, Sam Shin Precision Pvt Ltd, Chennai and Bangalore-based Wave Tech Electronics Pvt Ltd, has also been arrested.
SAMEER is an autonomous institution for Research and Development under the Ministry of Communication and Information Technology, Government of India, fully funded by the Ministry and deals with sensitive defence related and other projects, the release said.
"During the period from 2005 to 2009, Karunakaran abused his official position and showed undue favour to Sam Shin Precision Pvt Ltd, and awarded the contract of mass production of Integrated Radio Line Modems (IRLMs) to be used in Akash Missile Programme by Ministry of Defence, eliminating the other eligible government and reputed private companies," the release said.
Rathinavel was a classmate of Karunakaran and the latter had allegedly vested interest in the companies floated by him in different names, "to which he was awarding various contracts at SAMEER, Chennai from 2000 onwards and monitoring their day to day affairs," it said.
"When SAMEER short listed Sam Shin Precision as the company to be awarded the work, it was not even formed and registered. During investigation, the role of Kini, predecessor to Karunakaran, came to light with regard to causing huge loss to the tune of several lakhs to the exchequer of Government of India and hindrance to the progress to the 'Akash Missile' Project," it said.
They were produced before a court on Friday which remanded them to custody till April 1.