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The chief of state-owned defence company Bharat Earth Movers Limited (BEML), V.R.S. Natarajan, on Friday trashed allegations that the public sector unit (PSU) was involved in any wrongdoing in its dealings with the government.
Already pinned down by an investigation into an alleged Tatra truck scam, the BEML chairman responded to fresh allegations pertaining to another flagship company product, WZT-3 armoured recovery vehicle (ARV).
Responding to fresh charges on the alleged ARV scam where BEML is alleged to have made a killing, Natarajan threatened to sue former Army chief General (retired) V.K. Singh for defamation.
"We deny all the charges made by V.K. Singh. The charges made are false, motivated. Not a single letter was received by BEML or ministry that the vehicles were substandard, overpriced," Natarajan claimed addressing media in Bangalore.
In his parting shot, Gen (retired) V.K. Singh embarrassed the ministry of defence yet again on the day of his retirement as he talked about the ARV supply scam on Thursday.
BEML involved in other cases too?
In the ARV case, Bumar -- a Polish company which has been supplying WZT-3 ARV since 1999 -- has been under a cloud. Like Tatra, in this case too BEML played the middleman, allegedly making huge profits.
In fact, recently Bumar bagged a $275 million contract to supply 204 more ARVs. Bumar supplies to army ARVs in collaboration with BEML with the same indigenisation stipulations. However, the charge is that like Tatra it has not done so.
Significantly, the allegations are not new. The ministry of defence (MoD) was alerted about a potential scam more than a year ago.
Replying to a letter written by BJD MP Pinaki Misra to Defence Minister A.K. Antony in August 2011, the latter had accepted his charge.
"In the last contract of 2004, BEML attained an indigenisation content of 26 per cent despite the fact that conditions of the contract stipulate that there should be a 30 per cent indigenisation," Antony had replied.
Bumal tied up with an Indian player -- Chemon group of companies -- in order to indigenise. But that did not happen.
It was also alleged that Bumal sold spare parts at exorbitantly high rates. Also, there was allegedly no transparency in procurement.
When questioned, company managing director Chetan Seth replied that even he was surprised that BEML was making nearly 400 per cent profit on ARV sales to the army.
MP wrote to MoD on ARV scam
Talking to Headlines Today from Bhubaneswar over phone, BJD MP Pinaki Misra, who has written several letters to the MoD on alleged bungling in the purchase of ARVs, said, "I have written two detailed letters, one in January 2011 and the other in July 2011 as a reminder to the January letter detailing what is wrong with the deal."
"Basically, the BEML is acting like a defence dealer or a defence agent and is being done in a circuitous kind of way by which there are no tenders involved, repeat orders are being placed. In 1998 the first batch of ARV was bought from Kollam. Repeat order was placed in 2002, 2004 and again in 2012. No indigenisation taking place by buying these second hand ARVs, substandard engines at vastly inflated prices... exactly like the Tatra deal. It is happening right under the nose of the defence ministry," Misra said.
"The facts speak for itself. I sent a detailed letter about inferior technology, inferior engines, inflated prices... no tests, no trials, no tenders. Shouldn't there be a global tender instead of placing repeat orders," the MP asked.
Under scanner over fresh 'scam', BEML chief threatens to sue former Army chief : North, News - India Today
Already pinned down by an investigation into an alleged Tatra truck scam, the BEML chairman responded to fresh allegations pertaining to another flagship company product, WZT-3 armoured recovery vehicle (ARV).
Responding to fresh charges on the alleged ARV scam where BEML is alleged to have made a killing, Natarajan threatened to sue former Army chief General (retired) V.K. Singh for defamation.
"We deny all the charges made by V.K. Singh. The charges made are false, motivated. Not a single letter was received by BEML or ministry that the vehicles were substandard, overpriced," Natarajan claimed addressing media in Bangalore.
In his parting shot, Gen (retired) V.K. Singh embarrassed the ministry of defence yet again on the day of his retirement as he talked about the ARV supply scam on Thursday.
BEML involved in other cases too?
In the ARV case, Bumar -- a Polish company which has been supplying WZT-3 ARV since 1999 -- has been under a cloud. Like Tatra, in this case too BEML played the middleman, allegedly making huge profits.
In fact, recently Bumar bagged a $275 million contract to supply 204 more ARVs. Bumar supplies to army ARVs in collaboration with BEML with the same indigenisation stipulations. However, the charge is that like Tatra it has not done so.
Significantly, the allegations are not new. The ministry of defence (MoD) was alerted about a potential scam more than a year ago.
Replying to a letter written by BJD MP Pinaki Misra to Defence Minister A.K. Antony in August 2011, the latter had accepted his charge.
"In the last contract of 2004, BEML attained an indigenisation content of 26 per cent despite the fact that conditions of the contract stipulate that there should be a 30 per cent indigenisation," Antony had replied.
Bumal tied up with an Indian player -- Chemon group of companies -- in order to indigenise. But that did not happen.
It was also alleged that Bumal sold spare parts at exorbitantly high rates. Also, there was allegedly no transparency in procurement.
When questioned, company managing director Chetan Seth replied that even he was surprised that BEML was making nearly 400 per cent profit on ARV sales to the army.
MP wrote to MoD on ARV scam
Talking to Headlines Today from Bhubaneswar over phone, BJD MP Pinaki Misra, who has written several letters to the MoD on alleged bungling in the purchase of ARVs, said, "I have written two detailed letters, one in January 2011 and the other in July 2011 as a reminder to the January letter detailing what is wrong with the deal."
"Basically, the BEML is acting like a defence dealer or a defence agent and is being done in a circuitous kind of way by which there are no tenders involved, repeat orders are being placed. In 1998 the first batch of ARV was bought from Kollam. Repeat order was placed in 2002, 2004 and again in 2012. No indigenisation taking place by buying these second hand ARVs, substandard engines at vastly inflated prices... exactly like the Tatra deal. It is happening right under the nose of the defence ministry," Misra said.
"The facts speak for itself. I sent a detailed letter about inferior technology, inferior engines, inflated prices... no tests, no trials, no tenders. Shouldn't there be a global tender instead of placing repeat orders," the MP asked.
Under scanner over fresh 'scam', BEML chief threatens to sue former Army chief : North, News - India Today
