The CBI on Tuesday filed closure report in the Tatra all-terrain vehicle procurement scam allegedly involving Vectra Group chairman Ravinder Rishi and the then chief of public sector undertaking Bharat Earth Movers ltd. (BEMl) VRS Natarajan due to lack of evidence.
In a separate case related to alleged bribery offer to the then Army Chief Gen VK Singh, the agency had recently chargesheeted lt Gen Tejinder Singh (retd). The two cases pertaining to Tatra truck scam and bribery charges were registered after the then Army chief's complaint.Official sources said all the three main allegations against the accused Rishi and Natarajan could not be substantiated during the investigation.
In its FIR, the CBI had alleged that UK-based Tatra Sipox was not an original equipment manufacturer (OEM) and that payments were made by BEMl in Euros to Rishi's company. The agency had also alleged that indigenisation of the specialised trucks was purposefully not done as envisaged in the contract for supply of the vehicles.
CBI sources said the allegation that indigenization was not done deliberately could not be substantiated during the probe. However, the CAG had earlier criticized the PSU for failure in indigenization.
For the allegation that Tatra Sipox was not an OEM and purchase of the vehicles by BEMl through it was in violation of the defence procurement rules, the sources said during the probe and through responses received from different countries through letters Rogatory it emerged that the company was authorized by the Czechoslovakia-based OEM Tatra. The Czech company submitted in writing that Tatra Sipox was authorised distributor of its products.
The responses from the letters Rogatory also suggested that banks in the Czech Republic insisted on payments in Euros. Earlier, the payments were made in US Dolalrs.
CBI sources claimed since evidence collected during the probe did not support all the three major allegations, a closure report was filed in the case.
The original contract for supply of the trucks was signed with Tatra a.S in 1986 and the contract was renewed with Rishi-owned Tatra Sipox in 1997 in violation of the rules. Tatra Sipox had claimed itself to be an OEM and fully-owned subsidiary of the Czech company.