Embraer To Face Criminal Investigation In India’s AEW Aircraft Deal

The Indian Defense Ministry has asked the Central Bureau of Investigation (CBI) to probe in $208 million Embraer aircraft deal after allegations of payment of kickbacks to secure the airborne early warning and control systems (AEW&C) contract.

Defense Mininster Manohar Parrikar earlier this week had said, “CBI will be asked to probe if there is a criminal angle as the Ministry cannot.”

The government sources said since the allegations were of a serious nature, the CBI has been asked to probe.

"If only procedural issues are involved, then the Defence Ministry can do an internal investigation," he had said.

The deal for purchase of three Embraer aircraft during the UPA regime has kicked up dust with the US authorities going into alleged payment of kickbacks.

The deal has come under the scanner of the US Justice Department, which has been probing Embraer for alleged payment of bribes to secure contracts.

DRDO has already sought a report from the Brazilian firm, which has said it has been looking into graft allegations over the last five years.

The deal was signed in 2008 between Embraer and the DRDO for three aircraft equipped with indigenous radars for AEW&C.