Eight years after a case was registered against South African Defence Major Denel for alleged involvement of middlemen in securing contracts in India for supply of anti-material rifles, the CBI on Monday filed a closure report in city court here.
The agency filed its closure report before the special CBI court in Patiala House saying the allegations could not be substantiated during investigation.
The CBI sources said the agency has received responses of letters Rogatory (judicial requests) from South Africa, UK, Isle of Man and Switzerland, which did not show any evidence to substantiate the allegations of corruption.
According to the sources, South Africa sent a detailed response to the agency which said that while some payments were made by Denel to Varas Associates, the alleged intermediary, but they were not for the deal of anti-material rifles which are used by the Army for bursting bunkers.
In its FIR filed in 2005, the agency had alleged that Denel, owned by South African Government, had paid kickbacks to Varas Associates for clinching the deal during the NDA Government. Denel was blacklisted in 2005 after registration of the case.
The CBI had claimed that payoffs to Varas were allegedly made under the heads of technical assistance and consultancy for securing contracts here.
last year, a team of CBI officers led by its then chief AP Singh and DIG Praveer Ranjan had visited South Africa and met the officials there who had assured full cooperation to the agency.
The CBI has booked unknown employees of the Defence Ministry, Denel limited, Varas Associates, a company based in the tax haven Isle of Man, and others.
The CBI had alleged that Denel paid 12.7 per cent commission to Varas Associates for helping in securing contracts for the supply of anti-material rifles during NDA regime.
According to the Indian Defence procurement rules, original equipment manufacturer (OEM) should not involve any middlemen or intermediary for getting defence contract.
The agency had registered the case under Sections related to criminal conspiracy and cheating of the IPC besides provisions under the Prevention of Corruption Act.