The Central Bureau of Investigation, which filed a case against former defence minister George Fernandes in connection with the defence deal cases, conducted raids at 35 places in Delhi, Gurgaon, Mumbai, Bangalore and Chandigarh on Tuesday in connection with four different cases.
The former defence minister has been named as accused in one of the first information reports relating to the Barak missiles deal with an Israeli firm along with Admiral Sushil Kumar, the then chief of Naval staff, and Jaya Jaitley.
Incriminating documents were recovered during searches.
The Central government had referred 48 cases to the Central Bureau of Investigations and out of which 10 were related to illegal gratification. The expose was done by Tehelka.com in a secret operation recorded on hidden video camera.
'There were 14 defence deals, which had been talked about in the Tehelka tapes. There were 25 matters relating to 'Operation Vijay,' (Kargil War) which had also figured adversely in a special C&AG audit, two of which had also figured in the aforesaid 14 defence deals relating to Tehelka,' a press released issued by the investigating agency said.
'Another defence deal referred by MOD related to supply of Anti Material Rifles by Denel Ltd of South Africa,' the release added.
'In the Barak Missiles Case, in which preliminary enquiry has been converted into a regular case now, contract for seven Barak Anti Missile Systems and 200 missiles was signed on October 23, 2000, with M/s Israel Aircraft Industries Ltd. Israel despite objections by the Defence Research & Development Organisation in view of the availability/feasibility of the indigenous System (Trishul) for adaptation to Navy,' the statement said.
'Rs 2 crore was allegedly paid to the then president of a political party (who functioned from the residence of the then defence minister) by the middleman/agent while the then national treasurer of the said party was given separate gratifications to the tune of several lakh of rupees,' it added.
'The opinion of the Defence Research and Development Organisation was over-ruled by the then defence minister at the behest of the middleman/agent. The then Chief of the Naval Staff colluded with other accused persons and put up a note directly to the defence minister to import six Barak AMD Systems, misrepresenting facts and citing a DRDO concurrence given three years earlier when the indigenous Trishul System was in its initial stages of development and when in fact, the CNS had discussed this matter that very day with the then DRDO chief, who had opposed the proposal,' the CBI said.
'The then defence minister not only approved the proposal for import of Barak AMD Systems but tried to get the proposal approved by the Cabinet Committee on Security of the then caretaker government despite objection by the then defence secretary,' it noted.
'The proposal had also been processed as a single tender basis. The negotiated note of $268.63 million (Rs 1125 crore) was also in excess of the earlier quoted rate by $17 million (about Rs 71 crore), for which, there is no proper justification. Prima facie evidence has also come forth indicating receipts of remittances from abroad from the aforesaid firm or other firms connected with it into the accounts of the aforesaid middleman and two other middlemen,' the agency revealed.
