The Enforcement Directorate (ED) on Friday conducted searches at multiple locations in various cities in connection with a money laundering case relating to alleged corruption in the purchase of 75 Pilatus basic trainer aircraft for the Indian Air Force (IAF) in 2009.
The searches were conducted at 14 premises including a dozen in the national capital and one each in Gurgaon and Surat, officials said.
The ED had initiated a money laundering case to probe the deal and is carrying out the search operation to gather evidence under the Prevention of Money Laundering Act (PMLA), they said.
The case involves absconding arms deal broker and alleged middleman Sanjay Bhandari, who is already facing separate ED and CBI probes for corruption and alleged possession of undeclared assets in the country and abroad.
Bhandari is suspected to be staying in the UK at present and the ED is in the process of initiating extradition proceedings against him.
The CBI had filed a criminal case in the Rs 2,895 crore Pilatus deal in June last year.
The PMLA case was lodged by the ED after taking cognisance of the CBI FIR to probe the money laundering angle in the case and alleged creation and generation of illegal assets by the accused.
The CBI had named Bhandari as an accused in the case along with unidentified officials of the Indian Air Force, the Defence Ministry and Switzerland-based Pilatus Aircraft Limited in the case. The Swiss company was one of the bidders for the contract floated in 2009.
The CBI has alleged that Pilatus had entered into a criminal conspiracy with Bhandari and Bimal Sareen, both directors of Offset India Solutions Pvt Ltd, and dishonestly and fraudulently signed a Service Provider Agreement with Bhandari in June 2010 in violation of the Defence Procurement Procedure, 2008.
The deal was allegedly done to get the contract for supply of 75 basic Trainer Aircraft to the IAF.
The agency had alleged that the company made a payment of CHF 1,000,000 in the account of Offset India Solution Private Limited with the Standard Chartered Bank, New Delhi in two tranches in August and October, 2010.