Case registered against unknown BEML officials

The CBI, which on Friday registered a regular case in the multi-crore Tatra truck deal, alleged that unknown officials of a defence public sector unit (BEML) had entered into criminal conspiracy with one of the owners of a U.K.-based company (Vectra) having a name similar to a Czech company (Tatra) which was a manufacturer of military trucks.

The case was registered under Section120B read with Section 420 of the Indian Penal Code (criminal conspiracy and cheating) and sections 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988.

The agreement signed earlier with a Foreign Trade Corporation of Czechoslovakia for military vehicles was fraudulently assigned to the U.K.-based company by showing it as the original equipment manufacturer/fully owned subsidiary of the Czech company. This was against the provisions of defence procurement procedure for supplying the vehicles to Indian Army on the basis of the orders placed by the Ministry of Defence, the first information report said.

It further alleged that in this manner, vehicles worth thousands of crores of rupees have been supplied to the Indian Army. “In continuation of the aforesaid conspiracy to cause undue benefit to the said U.K.-based company, the unknown officials of the defence PSU allowed change of currency from U.S. dollar to Euro and further by not levying the liquidated damages, thereby causing further loss of approximately Rs. 13.27 crore.”

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