It’s widely believed to be SK Sharma, the current CAG, who was director general acquisition in 2010.
Agusta deal middleman Christian Michel’s handnotes, that are part of the 225-page Milan Court of Appeals order over corruption in the Rs3,600 crore VVIP chopper deal, lists out the beneficiaries of bribe in India.
Michel’s note mentions the beneficiaries with the initials of their names and includes ‘DG Acq’ purportedly for DG Acquisition in the ministry of defence (MoD) along with others like ‘Dch’ that is being read as Deputy Chief, “DG Maintt”, arguably understood as DG Maintenance, ‘Bur’ for bureaucrats, ‘Pol’ for politicians, ‘AP’ which has been interpreted as Ahmed Patel, the political secretary to Sonia Gandhi.
At the time of inking of the Agusta deal in January 2010, the post of Director General (DG), Acquisition in the ministry was held by the current Comptroller and Auditor General (CAG) SK Sharma. Even as he stayed on the position from April 2007 to September 2010, and later became defence secretary, in May 2013, when he was appointed CAG, questions were raised by then AAP member and senior supreme court lawyer Prashant Bhushan on his neutrality as an auditor since he had himself cleared defence projects as DG.
DG, acquisition handles technical and compliance requirements of tender. During his term as DG acquisition, besides Agusta, $1.1 bn dollar deal for six C-130J Super Hercules transport aircraft and a $2.2 billion dollar deal for eight P8i aircraft for the Navy were also signed. Michel’s note alleges that the 30 million euros, which formed the part of the kickback money, were divided between political leaders who were paid 15-16 million euros, air force officials, who got six million euros and the bureaucrats in the defence ministry who were given 8.4 million euros.
Sharma had a close to 10 year stint in MoD in varying capacities starting from joint secretary Ex-Servicemen Welfare (ESW) in December 2003.
Interestingly, three months after Sharma took over as the head of the auditing body, a CAG report tabled in Parliament in August, 2013 said that the MoD bent rules for the purchase of VVIP helicopters from the Italian firm.
It also questioned the air headquarters for failing to prepare a proper estimates of the requirement. Pointing to procedural lapses, CAG questioned why the MoD deviated from the Defence Procurement Procedure and from the provisions of the deal tender issued in September 2006. It also pointed that it found no justification for increase in the original requirement of helicopters from 8 to 12.
The CBI and the Enforcement Directorate are probing the case in India in which former air force chief SP Tyagi and his relatives along with four other European nationals and firms have been booked for taking kickbacks worth Rs423 crore to award the deal.
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