Tag Archives: BEML

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Gen VK Singh stalled BEML’s 1,000 truck order in 2010

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TNN | Apr 14, 2012, 12.29AM IST

NEW DELHI: Bharat Earth Movers Limited (BEML), which is in the eye of the storm kicked up by the Army chief’s claim about a Rs 14-crore bribe offer, was preparing to supply 1,000 Tatra trucks in 2010 when General V K Singh stalled the entire acquisition.

Sources said BEML, the Bangalore-based defence PSU, had on the assurance of the then Master General of Ordnance (MGO) of the Army in 2010, had taken “advance action” for supply of 1,000 Tatra vehicles. All these vehicles were to of 6×6 and 8×8 variants.

It is not clear if Gen Singh refused clearance after September 22, 2010, the day he was allegedly offered the bribe by Lt Gen Tejinder Singh on behalf of Tatra.

Tatra truck purchases are usually sent by MGO directly to the ministry of defence (MoD), BEML later pointed out to the MoD. But in 2010, the Army chief had asked for the Tatra file and put the acquisition on hold. Instead, the Army moved a proposal to the Defence Acquisition Council, headed by defence minister A K Antony, for a competitive global tender for the purchase of 6×6 and 8×8 trucks.

The last order for Tatra trucks were placed with BEML in March, 2010, a few days before Gen VK Singh took over as the Army chief on March 31. The last order was for 788 vehicles out a total projected requirement of 3,296.

While the last order was placed by MGO Lt Gen Vinay Sharma, his successor told the BEML that there was no requirement for new vehicles to be acquired from revenue budget.

The Army is presently processing the global competitive tender, which could take several months to complete.

The forces’ stand on Tatra acquisition would be a key component of the ongoing CBI probe into Gen Singh’s allegation that he was offered Rs 14 crore bribe for clearing the purchase of Tatra trucks.

While many of the documents related to Tatra deal – from the Army HQ, MoD and BEML – have been handed over to the CBI, indications are that the agency is yet to get any ‘breakthrough’ documents to show corruption trail in the Tatra deal.

CBI officials would be meeting with Gen Singh, who was away in Punjab on Friday, for collecting further clarification to his written complaint about the bribe offer.

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Where is the Tatra scam whistle-blower?

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Reported by Tejas Mehta,   Updated: April 04, 2012 18:40 IST -NDTV

New Delhi:   Has the whistle-blower in the Tatra truck scam gone underground fearing for his life? Since the Army Chief General VK Singh disclosed last week that he was offered 14-crores as a bribe to clear “sub-standard” trucks, a new surge of attention is being paid to the 7000 Tatra trucks that have been bought by the Army since 1986. Tatra is a Czech-manufacturer. It is owned by Vectra, a London-based company, which supplies parts to a defence-run public sector unit, BEML, based in Bangalore. The trucks are assembled at BEML and sold to the Army. Their performance and price have both been questioned by military analysts in the past, but it took General Singh’s statement about the bribe to prompt close scrutiny. A CBI inquiry is looking at how the trucks were sold in violation of rules – all defence equipment has to be bought directly from the manufacturer but Tatra trucks allegedly come to the Army via middleman.

The man who may have some answers to the many questions about Tatra trucks is SN Ashoka, a former Assistant General Manager in the Trucks Division of BEML. “Ashoka is the real whistle-blower in this scam. He worked for BEML and knows A to Z details of the scam. He feared for his life. For the past week we have not been able to get in touch with him,” says Dr Hanumanthappa, the President of the All India Federation SC/ST and Minorities Employees Welfare Association, Karnataka, who submitted a confidential report written by Mr Ashoka to Sonia Gandhi, Defence Minister AK Antony and President Pratibha Patil. In August 2009, Mr Ashoka wrote a memorandum to his boss, the Chairman of BEML VRS Natarajan. Mr Ashoka enumerated various charges of corruption against the Chairman in that note. One of the allegations he raised was that Tatra trucks were being bought with the use of agents or middlemen. Mr Hanumathappa submitted the report to the Prime Minister, Defence Minister and Sonia Gandhi. But he claims that no action was taken.   “We have observed in the last few days suspicious movements around our office and home. There is an international mafia that is connected to this scam and we fear for our lives. We will seek police protection,” says Hanumathappa’s son Ananda Kumar in Bangalore.

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New details emerge on Tatra truck deal

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THE HINDU

NEW DELHI, April 2, 2012

PRAVEEN SWAMI,VINAY KUMAR

CBI questions London millionaire again

Even as Central Bureau of Investigation detectives have begun questioning Ravi Rishi, the London-based millionaire businessman at the heart of the showdown between the Defence Ministry and Chief of the Army Staff V.K. Singh, fresh details have begun to emerge of the truck deal that precipitated the crisis.

Rajan Mukherjee, the general manager of West Bengal-based Ural India, has told The Hindu that General Singh — then General Officer-Commanding of the Eastern Command — had requested the firm to provide trucks for testing in 2008, after Tatra trucks sold by Mr. Rishi’s firm “miserably failed 17 Mountain for performing Quick Reaction Team and reconnaissance duties in [the] super-high altitude areas of northern Sikkim.”

“Defects”

“During the trials,” Mr. Mukherjee said in an e-mail to The Hindu, “the Tatra vehicle developed defects in engine assembly, whereas Ural’s engine performance was satisfactory even after running about 600 km at high altitude.”

Mr. Rishi owns Vectra, a conglomerate which has a controlling stake in Czech and Slovak-based specialist truck firm Tatra, which has supplied the Indian Army since 1986.

Rashi Verma, a Joint Secretary at the Defence Ministry, had said last week that the government had “never received any complaint from the armed forces” — a statement which suggests the Eastern Command either chose not to pass on its problems with the Tatra to the army headquarters in New Delhi, or that its reports were suppressed by higher authorities.

In an exclusive interview to The Hindu published on March 26, General Singh had said he was offered a Rs. 14-crore bribe, which, it emerged, was linked to an officer allegedly representing Tatra to clear a consignment of 600 trucks.

There is no information available so far if Ural India’s trucks were the sole platform tested by the Eastern Command in Northern Sikkim and if so, why. Ural is co-owned by Kolkata-based magnate J.K. Saraf, who knew Gen. Singh during his tenure as Eastern Army Commander. There is no allegation, however, of the relationship having caused improper influence to be exercised.

Mr. Mukherjee’s claims, however, stand in stark contrast to earlier statements by VRS Natarajan, the head of public-sector giant BEML, which co-manufactures Tatra trucks in India. Mr. Natarajan claimed that Ural India’s trucks had been knocked out of competition in the ongoing trials, a claim Mr. Mukherjee has denied in his e-mail to The Hindu, adding that his firm is considering “appropriate action.”

The BEML chief, however, has since been backed by Defence Research and Development Organisation chief V.K. Saraswat, who said Tatra trucks were “outstanding.” Both BEML and Tatra have said they are considering legal action against General Singh, but provided no details of their course of action.

Army sources said the problem encountered in Sikkim could have been related to the Tatra truck’s engine, which is designed for rugged battlefield use, compromising high-altitude performance in return for lower risks of breakdown.

CBI officials refused comment on the issues they had discussed with Mr. Rishi, but the businessman has been barred from leaving India until further notice.

He was earlier questioned by the agency officials last week, soon after the CBI registered an FIR in the case. CBI officials were also poring over and analysing a number of documents seized during raids in Delhi, Noida and Bangalore.

Apart from Mr. Rishi, the FIR refers to unknown officials of BEML, Vectra and the Army. The case was registered under provisions of the Indian Penal Code relating to criminal conspiracy to cheat and under the Prevention of Corruption Act.

The investigators are tasked with looking into all purchases of Tatra trucks made from 1997, when Vectra took control of Tatra. Since 1986, the Army has purchased some 7,000 Tatra trucks to transport troops and artillery.