Agency has registered the case on the recommendation of the Central Vigilance Commission
The Central Bureau of investigation (CBI) registered an first information report (FIR) against officials of Air India, German multinational software corporation, SAP SE, AG and American Technology giant IBM in connection with alleged irregularities in procurement of software by the national carrier in 2011.
According to officials privy to the investigation, the amount of the alleged irregularities are estimated at Rs 225 crores and was highlighted first by Central Vigilance Commission (CVC) which has examined reports made by the Chief Vigilance Officer of Air India with regards to the alleged irregularities.
Senior officials of the CBI on Friday said the agency is in the process of identifying the officials of Air India and the other private firms, following which, further action will be taken.
"The CBI has registered the FIR in connection with alleged irregularities in the procurement of software purchase from a German software company,"said CBI spokesperson RK Gaur. The case has been registered under IPC sections related to criminal conspiracy and cheating and some sections of the Prevention of Corruption Act.
According to CBI, back in 2011, Air India had selected the Enterprise Resource Planning (ERP) software system from SAP AG without following proper tendering procedure and without justifying the need for the same since already a similar system of Oracle was in operation.
The matter was taken up by CVC which has said it found prima facie procedural irregularities in the procurement of software. The CVC had asked the probe agency to investigate the "irregularities in the tendering process and award of contract and undue benefit caused to the SAP/IBM"
In a communication to CBI, CVC has said it was of the view that there were "serious procedural and other irregularities" in the procurement as well as amount paid and extent of services rendered. CVC has also alleged that there was no approval from the Ministry of Civil Aviation even though Air India had claimed that it had made a presentation before the Group of Secretaries on July 9, 2009, and before the Group of Ministers in 2010.
According to CBI an open tender system was not adopted for procurement of new ERP software and instead the contract was awarded to SAP and IBM on nomination basis.
CVC in its findings suggested that Oracle system was facing some problems but no efforts were made to upgrade the existing system or to correct the technological glitches.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Air India")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}