The CBI on Tuesday questioned two former Chairmen-cum-Managing Directors (CMDs) of Public Sector Undertaking Bharat Earth Movers limited (BEMl) in connection with alleged irregularities in procurement and supply of Tatra all-terrain vehicles to the Army.
The agency had summoned former CMDs TVS Shastry and VRS Natrajan and four other Directors of BBMl of that period and questioned them in Bangalore over the deal, agency sources said.
The sources said the agency has also collected relevant records pertaining to Tatra deal and is expected to wrap up investigations within the next three weeks. The records are being scrutinised and evidence evaluated before a chargesheet is filed in the case.
The defence PSU allegedly favoured a UK-based firm Tatra Sipox by changing the payment currency from US Dollar to Euro and did not levy liquidated damages, causing a loss of Rs 13.27 crore to the exchequer.
The two former CMDs are suspected to have been instrumental in favouring the UK-based firm. Natarajan is also alleged to have been involved with agents and lobbyists for placement of orders for the Tatra trucks.
CBI had registered a case against Vectra Chief Ravi Rishi and unnamed officials of the Defence Ministry, Army and BEMl on March 30, 2012 for alleged criminal conspiracy, cheating and also under relevant sections of the Prevention of Corruption Act.
CBI is probing alleged irregularities in assigning of supply from Czechoslovakia-based Tatra, with which the agreement was signed in 1986, to the Tatra-Sipox UK owned by Rishi in 1997 showing it as an original equipment manufacturer and the fully-owned subsidiary of Czech company, which was against the provisions of Defence Procurement Procedure.
Vectra, which has controlling stake in Tatra Sipox UK, came under the CBI scanner over alleged irregularities in the supply of all-terrain vehicle components to the public sector BEMl which assembles and supplies these vehicles to the Army.