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NEW DELHI: Seven years after it claimed a grand conspiracy including staggering amounts of bribe in Indian Navy's purchase of Barak missile systems from Israel, the Central Bureau of Investigation (CBI) has closed the case admitting that it had no evidence against the accused, including former defence minister George Fernandes, ex-president of Samata PartyJaya Jaitly, former Navy chief Admiral Sushil Kumar, businessman Suresh Nanda and others.
The Barak scandal came to light in 2001, whenTehelka released Operation West End tapes showing several important people like R K Jain, treasurer of Samata Party and close aide of Fernandes, discussing bribes paid for swinging defence deals, including for Barak missile purchase. Jain claimed that Rs 1 crore was paid by Nanda to Jain for ensuring that Fernandes clear the deal worth Rs 1,150 crore to procure Barak anti-missile systems and missiles meant for ships. Initial investigations of the agency had suggested that bribes of Rs 174 crore in total had been paid at various levels for securing the contract.
In its closure report filed in a Delhi court two days ago, CBI has claimed that they did not find any substantial evidence to prove that bribes were paid in lieu of the contract. Agency sources said, "The alleged abnormality in giving contract to Israel Aerospace Industries (IAI) could not be substantiated."
Over the past six years, CBI questioned all those named as accused, including several Navy officers, and conducted investigations in Israel apart from taking opinion from the law ministry. However, agency's top brass recently concluded that the case should be closed.
CBI sources say that the contract and absence of evidence has been discussed with the ministry of defence (MoD) several times in the past few years.
It was considered one of the biggest scams during NDA's regime.
The contract was signed on October 23, 2000, in which a $200 million order was placed with Israel Aircraft Industries (IAI) for seven Barak missile systems, along with armament from Rafael Armament Development Authority to be installed on Indian naval ships. Suresh Nanda's Crown Corporation acted on behalf of IAI and allegedly paid bribe to get the order passed, the CBI had claimed.
CBI had stated in its FIR, on October 9, 2006, that large payments were remitted from the firm MTU Aero Engines, a supplier to IAI, into the bank accounts of Dynatron Services, a company managed by Suresh Nanda and his family members. CBI had even arrested several persons in the case.
Agency had named Fernandes, Jaitly, Jain, Admiral Sushil Kumar and Nanda among others in the FIR.
The CBI had alleged that Nanda paid Rs 2 crore to Jaitly at Fernandes's house to get his signature on the contract for seven Barak Anti-Missile (AMD) Systems and 200 missiles from IAI. The deal was done in haste and despite the DRDO's objection, the agency had claimed.
CBI FIR had stated that then DRDO chief, A P J Abdul Kalam, had recommended the indigenous Trishul for the Navy but was overruled. However, this claim of the CBI was later exposed as hollow by Admiral Kumar, who used RTI applications to show that Trishul was nowhere near completion, had overshot its deadline several times, and resultantly Indian naval ships were sitting ducks in the open seas to enemy attacks.
The agency accused Fernandes of overruling DRDO's opinion at the behest of middlemen. It had also accused then Navy Chief Admiral Kumar of conniving with middlemen and other accused and directly putting up the proposal to Fernandes for procurement of seven Barak AMD systems.
The CBI's move is consistent with its track record of failing to expose corruption in a defence deal, in which kickbacks are paid around the world, mostly through secretive tax havens and other shadowy ways.
CBI closes Barak scandal case for lack of evidence - The Times of India
The Barak scandal came to light in 2001, whenTehelka released Operation West End tapes showing several important people like R K Jain, treasurer of Samata Party and close aide of Fernandes, discussing bribes paid for swinging defence deals, including for Barak missile purchase. Jain claimed that Rs 1 crore was paid by Nanda to Jain for ensuring that Fernandes clear the deal worth Rs 1,150 crore to procure Barak anti-missile systems and missiles meant for ships. Initial investigations of the agency had suggested that bribes of Rs 174 crore in total had been paid at various levels for securing the contract.
In its closure report filed in a Delhi court two days ago, CBI has claimed that they did not find any substantial evidence to prove that bribes were paid in lieu of the contract. Agency sources said, "The alleged abnormality in giving contract to Israel Aerospace Industries (IAI) could not be substantiated."
Over the past six years, CBI questioned all those named as accused, including several Navy officers, and conducted investigations in Israel apart from taking opinion from the law ministry. However, agency's top brass recently concluded that the case should be closed.
CBI sources say that the contract and absence of evidence has been discussed with the ministry of defence (MoD) several times in the past few years.
It was considered one of the biggest scams during NDA's regime.
The contract was signed on October 23, 2000, in which a $200 million order was placed with Israel Aircraft Industries (IAI) for seven Barak missile systems, along with armament from Rafael Armament Development Authority to be installed on Indian naval ships. Suresh Nanda's Crown Corporation acted on behalf of IAI and allegedly paid bribe to get the order passed, the CBI had claimed.
CBI had stated in its FIR, on October 9, 2006, that large payments were remitted from the firm MTU Aero Engines, a supplier to IAI, into the bank accounts of Dynatron Services, a company managed by Suresh Nanda and his family members. CBI had even arrested several persons in the case.
Agency had named Fernandes, Jaitly, Jain, Admiral Sushil Kumar and Nanda among others in the FIR.
The CBI had alleged that Nanda paid Rs 2 crore to Jaitly at Fernandes's house to get his signature on the contract for seven Barak Anti-Missile (AMD) Systems and 200 missiles from IAI. The deal was done in haste and despite the DRDO's objection, the agency had claimed.
CBI FIR had stated that then DRDO chief, A P J Abdul Kalam, had recommended the indigenous Trishul for the Navy but was overruled. However, this claim of the CBI was later exposed as hollow by Admiral Kumar, who used RTI applications to show that Trishul was nowhere near completion, had overshot its deadline several times, and resultantly Indian naval ships were sitting ducks in the open seas to enemy attacks.
The agency accused Fernandes of overruling DRDO's opinion at the behest of middlemen. It had also accused then Navy Chief Admiral Kumar of conniving with middlemen and other accused and directly putting up the proposal to Fernandes for procurement of seven Barak AMD systems.
The CBI's move is consistent with its track record of failing to expose corruption in a defence deal, in which kickbacks are paid around the world, mostly through secretive tax havens and other shadowy ways.
CBI closes Barak scandal case for lack of evidence - The Times of India