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CBI managed only one conviction in defence related probes

CBI sources said influential connections of middlemen in the countries of their operation and layered international transactions are making it difficult for the agency to get information from abroad.

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Press Trust of India New Delhi
Last Updated : Feb 23 2013 | 1:10 AM IST
CBI has managed to get only one conviction in 22 defence deal related cases registered by it since 2004 as it struggles to get information about routing of money and activities of middlemen from foreign countries.

CBI sources said influential connections of middlemen in the countries of their operation and layered international transactions are making it difficult for the agency to get information from abroad which is adversely affecting its probes.

The sources said the agency has registered 22 cases related to defence matters since 2004 in which nine are related to Tehlka expose, 11 related to defence related purchases and two pertain to secret documents held by private people.

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They said CBI could achieve conviction in only one case related to bribe received by the then BJP President Bangaru Laxman which was exposed by a sting operation carried out by Tehelka magazine.

In 14 cases, CBI has filed charge sheet while in six investigations are on.

The agency has closed two cases related to alleged irregularities in up-gunning of 130 mm field guns to 155 mm calibre by an Israeli firm Soltam and purchase of Terminally Guided Munition from a Russian firm Krasnapol, they said.

Both the cases were exposed through Tehelka sting operation and pertain to tenure of former Defence Minister George Fernandes.

The sources said country's international relations and trade ties are one of the reasons for poor execution of Letters Rogatory-- judicial request through which information is sought from a foreign country--and subsequent delay in probe here.

Another major problem CBI faces is sophisticated and layered financial transactions through number of countries which makes it difficult to piece together clear money trail of the bribe and illegal gratification, they said.

If we fail to establish even one piece of trail, we cannot establish the entire chain which makes cases very weak, an official said.

CBI sources said the illegal gratification earned through defence deals are routed through tax haven countries which makes it difficult to obtain any evidence because of the liberal laws practiced there.

"Email tracking and identification of suspect, beneficiary, middle man, etc. Becomes difficult, as all the servers are located overseas. The countries concerned refuse to share evidence as well e-mails," an official said.

Despite these hurdles, he said, agency's investigation have been completed in 14 cases and charge sheet have been filed by it.

CBI is probing many high profile defence cases which include coffin scam, Ordnance factory board scam, Tatra-BEML deal, VK Singh bribery allegations among others.

The sources said most of the middlemen are based abroad or are non-resident Indians having businesses abroad which makes it difficult to separate amount earned through legal sources from the illegal commission earned by them from defence deals.

There is no Mutual Legal Assistance Treaty with many countries as a result LRs are not executed even after government issues Assurance of Reciprocity, they said.

The sources said strong connections of middlemen in the countries of their operation and influence exerted by them results in poor rate of execution of Letters Rogatory.

"Emergent situation and urgent requirement by defence also provide conducive situation for such nefarious activities and pose a hurdle to establish criminality," the official said.

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First Published: Feb 22 2013 | 7:04 PM IST

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