Saturday 29 October 2011

Barak Missile Purchase Scam Defense

The Barak missile system was jointly developed by Israel Aircraft Industries (IAI) and RAFAEL Armament Development Authority of Israel.


On 23 October 2000, contracts had been signed by the Indian government to procure seven Barak systems at a total cost $199.50 million and 200 missiles at a cost of $69.13 million. This was done despite objections raised by several groups, including members of the team that had originally visited Israel to observe the missile performance, and APJ Abdul Kalam, then heading the Defence Research Development Organization. Though some of the objections were of a procedural nature, the Navy Chief of Staff Sushil Kumar is currently under investigation as to why these objections were not considered.

In 2001 a sting operation conducted by Tehelka alleged that 15 defence deals made by the government had involved some sort of kickback and the Barak missile deal was one of them. Transcripts of conversations between the undercover Tehelka operative and R. K. Jain indicate that Jain accepted bribes from Suresh Nanda in the amount of one crore.

The NDA government set up a commission to investigate the matter. The UPA government, rejected the partial report by the commission and the Central Bureau of Investigation (CBI) began investigating the case.



The Central Bureau of Investigation lodged an First Information Report (FIR) on 9 October 2006 and claimed that George Fernandes the Indian defense minister at that time, and the Former Chief of the Indian Navy, Admiral Sushil Kumar were involved. The FIR notes that the Indian Defence Research & Development Organization had sought to block the import of the Barak system right until the end. The FIR restates R.K. Jain's admission to Tehelka that 3 per cent of this cost went to Fernandes and Jaya Jaitley as commission, while he himself was given 0.5 per cent. These commissions were paid to them by Suresh Nanda, the middleman in the deal, according to the Tehelka tapes.

Suresh Nanda, his son Sanjeev Nanda, and two others were arrested on the 9 March 2008 under section 120-B (criminal conspiracy) and section 201 (committing offense to cause disappearing of evidence) related to the scandal.

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