CBI Register Case Against UK-Based Middleman for Embraer Deal
According to defence procurement rules of India, middlemen are strictly barred in such deals.
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The CBI has registered an FIR against a UK-based arms dealer for allegedly taking kickbacks worth over USD 5.70 million from Brazilian company Embraer in the 2008 three-aircraft deal.
CBI sources said a case has been registered against a UK-based NRI whose named had also figured in another defence deal probed by the agency.
They said the kickbacks were allegedly paid in 2009 through subsidiaries of Embraer via a Singapore-based company which is owned by the middleman.
It is alleged that payoffs were routed through Austria and Switzerland.
They said the agency, which had registered a preliminary enquiry in September, has converted it into a regular FIR as enough prima facie material has been found to proceed in the case.
The deal for the three aircraft which were to be used by Defence Research and Development Organisation (DRDO) for air-borne radar systems was inked in 2008 with Embraer. A Brazilian newspaper had alleged that that the company had taken the services of middlemen to clinch deals in Saudi Arabia and India.
According to defence procurement rules of India, middlemen are strictly barred in such deals.
Leading Brazilian newspaper Folha de Sao Paulo had reported that the company allegedly paid commissions to a UK-based defence agent to finalise the deal with India.
DRDO had purchased three aircraft from the company in 2008 and customised them for serving are air-borne radar system known as airborne early-warning and control systems or AWACS for the Indian Air Force.
The company has been under investigation by the US Justice Department since 2010 when a contract with the Dominican Republic raised the Americans' suspicions, the report said.
Since then, the investigation has widened to examine business dealings with eight more countries.