Def Min puts on hold deals with Rolls Royce

India seeks CBI probe into the controversial deal

The defence ministry has put on hold all existing and future deals with Rolls Royce pending a Central Bureau of Investigation probe ordered into allegations of bribery and engaging middlemen in contracts worth Rs 10,000 crore for the supply of aircraft engines to state-owned Hindustan Aeronautics.

 

"There are unconfirmed reports that something is wrong in the contract. So the CBI has been asked to look into it," official sources of the Indian side said here.

 

"Once they do it, they will let us know. Then we will take it forward. We are trying to establish the facts," they said.

 

"It was only natural for the defence minister to ask the CBI to look into it," the sources said.

 

The comments came as Prime Minister Manmohan Singh landed in Myanmar today to attend the two-day BIMSTEC Summit.

 

The deal relates to supply of engines by London-based Rolls Royce company for Hawk trainer and Jaguar fighter aircraft between 2007 and 2011 and an internal probe by the vigilance wing of HAL has prima facie established the charges.

 

The allegations surfaced in the form of a letter received by HAL recently claiming that bribes were paid to officials in HAL and other departments concerned to bag contracts.

 

HAL immediately initiated an inquiry into the charges through its Chief Vigilance Officer (CVO).

 

The investigations by CVO have prima facie found that the company allegedly violated several of the contractual obligations with HAL between the period of 2007-11, when these bribes were allegedly paid, they said.

 

Defence Minister A K Antony ordered the CBI probe after the case along with the findings and recommendations of the CVO of HAL was brought to his notice.