Case Filed In Embraer Aircraft Deal, Defence Agent Vipin Khanna Named Key Accused

New Delhi: Investigating the $208-million aircraft deal signed with Brazilian aircraft maker Embraer during the previous UPA rule, the CBI has filed a case and named NRI defence consultant Vipin Khanna as a key accused.

Mr Khanna, 87, is accused of receiving nearly $6-million from Embraer, the world's third largest aircraft maker, to broker the deal.

Last month, the central government had asked the CBI to investigate reports that Embraer had hired a UK-based Indian middleman to push the deal in 2009. The kickbacks were allegedly routed through Austria and Switzerland.

The deal involved the purchase of three aircraft equipped with indigenous radars for Airborne Early Warning and Control Systems. The first aircraft was delivered in 2011 and the remaining two in 2013.

Sources have told NDTV that the Indian Air Force believes its acquisition of the Embraer aircraft will not be stopped since they meet a key requirement. Any action against Embraer may involve fines or other measures, but not an outright ban, sources believe.

Questions were raised in 2010 after the US Justice Department started investigating Embraer for alleged payment of bribes to secure contracts in various countries. The investigation began when a contract between Embraer and the Dominican Republic raised suspicion. The investigation was later expanded to business dealings with eight other countries.

After the CBI started investigating the deal in September, Embraer issued a statement saying, "Since 2011, Embraer has publicly reported that it has been conducting an extensive internal investigation and cooperating with the authorities."