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Thursday, Apr 14, 2005

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More defence deals under CBI scanner

J. Venkatesan

Action against Fernandes, if found guilty: affidavit

NEW DELHI: The Central Government filed on Wednesday an additional affidavit in the Supreme Court stating that it had decided to refer 23 more cases, including the Kargil coffin purchase deal, to the Central Bureau of Investigation for a fresh inquiry.

Two cases mentioned in the Tehelka tapes had already been referred to the CBI for probe.

The Comptroller and Auditor-General, while scrutinising the 123 defence purchase deals, had found irregularities in 35 cases. While the CBI is already conducting a probe in respect of three cases on the recommendations of the Central Vigilance Commission, 25 more cases are now to be probed.

The Court had issued notice to the Centre on a public interest petition filed by Dhananjay Chauhan alleging that the irregularities in the Kargil scam caused a loss of Rs. 2,175 crores to the exchequer.

It was alleged that the Government during the Kargil war had relaxed the norms for the purchase of equipment, arms and ammunition but did not revert to the old procedure even after the cessation of the armed operations.

Denying this allegation, the Centre in its earlier affidavit filed last week, had said that defence procurements were being made under the Defence Procurement Procedure, 1992.

It said the simplified procedure "in no way violated any of the financial rules of the government or the Defence Procurement Procedure, 1992."

Strict action

The new affidavit made it clear that "the Government is committed to taking strict action against officials/authorities, including the former Defence Minister, [George Fernandes] if it is found that the excuse of Kargil war was taken to make the purchases with a motive of personal benefit in violation of rules and regulations."

It said:

"The CAG report has brought out that modified procurement procedure was used to push through deals in the name of Kargil long after the hostilities had ceased and if the deals were to be scrutinised in normal circumstances, these would not have been entered into, thereby, suggesting serious misconduct on the part of officials/authorities in the government, including the then Defence Minister.

"The Government is now exploring whether the facts reveal a prima facie case of commission of criminal offences under law as heavy financial losses in excess of Rs. 2,000 crores [as per the CAG Report] were caused, in addition to the fact that the equipment did not materialise in the time of its need."

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