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CBI questions 2 top BEML executives in Tatra truck case

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CBI on Tuesday questioned two former Chairmen-cum-Managing Directors of Public Sector Undertaking BEML in connection with alleged irregularities in procurement and supply of Tatra all-terrain vehicles to the Army.

CBI called former CMDs T V S Shastry and V R S Natrajan and questioned them over the deal besides summoning four Directors who were on the board when this deal was struck, agency sources said.

CBI had registered a case against Vectra Chief Ravi Rishi and unnamed officials of the Defence Ministry, Army and BEML on March 30 for alleged criminal conspiracy, cheating and also under relevant sections of the Prevention of Corruption Act.

Rishi and his company Vectra have denied any wrong doing in the case. CBI is probing alleged irregularities in assigning of supply from Czechoslovakia-based Tatra, with which the agreement was signed in 1986, to the Tatra-Sipox UK owned by Rishi in 1997 showing it as an original equipment manufacturer and the fully-owned subsidiary of Czech company, which was against the provisions of Defence Procurement Procedure.

Vectra, which has controlling stake in Tatra Sipox UK, came under the CBI scanner over alleged irregularities in the supply of all-terrain vehicle components to the public sector BEML which assembles and supplies these vehicles to the Army.

"In continuation of the conspiracy to cause undue benefit to the UK-based company, the unknown officials of the Defence PSU allowed change of currency from US Dollar to Euro and further by not levying the Liquidated damages, thereby causing a further loss of Rs 13.27 crores," the CBI spokesperon had said.

At that time, Rishi had termed the allegations against him as unfortunate, saying the trucks were sold through public sector undertaking BEML.

He also said the charges levelled with regard to Tatra trucks by fomer Army Chief Gen V K Singh that they were "sub-standard" and that he was offered a bribe of Rs 14 crore to clear the deal of 600 such trucks were baseless.

Natarajan has also refuted the alleged involvement of agents and lobbyists in placement of orders for the Tatra all-terrain trucks.

"In the last 26 years, from 1986, onwards BEML assembled manufactured, supplied 7,000 Tatra trucks. All of them have been done on single nomination basis, single inquiry basis".
"This type of equipment no body in the world makes because of its superior technological features. When I am the single vendor and there is no competition, there is no influence required," he had said. 

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