CBI formally begins probe into Embraer aircraft deal

NEW DELHI: The CBI on Saturday formally began a probe into the allegations of kickbacks in the purchase of three Embraer aircraft in 2008, following a reference

Published on: Sep 18, 2016, 06:29:45 IST

By HT Correspondent

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NEW DELHI: The CBI on Saturday formally began a probe into the allegations of kickbacks in the purchase of three Embraer aircraft in 2008, following a reference from the defence ministry.

The allegations of payment of commission to middlemen to swing the deal were first reported by the Brazilian press. News reports claimed that Embraer paid commission to London-based middlemen to bag the contract worth $208 million with Indian Defence Research and Development Organisation (DRDO).

According to defence procurement rules of India, middlemen are strictly barred in such deals. The DRDO had customised the aircraft for serving as air-borne radar system known as airborne early-warning and control systems or AEWCS for the Indian Air Force.

It was also reported that the US justice department was scrutinising Embraer’s deal with India as part of its wider probe into a contract of the Brazilian with the Dominican Republic.

Following the news reports, the defence ministry sent all documents pertaining to the Embraer deal to the CBI to check veracity of allegations appearing in the press.

The CBI sources said at the moment, the preliminary enquiry is against unknown public servants and private persons.

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