CBI arrests Munitions India Limited official, SMPP CEO in defence leaks-for-money case

New Delhi: The CBI has arrested the executive director of state-run Munitions India Limited (MIL) and the CEO of SMPP, an ammunition manufacturing firm, over alleged exchange of bribes for favours and "sensitive defence information" related to a Rs 500 crore supply contract, officials said on Wednesday.

In its FIR, the agency alleged that MIL executive director Anil Kumar, in connivance with certain private contractors and vendors, accepted illegal gratification in exchange for extending official favours and disclosing "sensitive information concerning defence production, procurement, and other strategically important activities" of the state entity.

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The CBI alleged that unauthorised disclosure had the potential to compromise the nation's strategic and security interests, and "undermine the integrity of defence-related processes, and pose serious risks to national security and public safety."

No immediate reaction was available from SMPP on the developments.

"The CBI registered the instant case on Monday against the said accused public servant on allegations that while posted at Munitions India Limited (MIL), Pune, as Executive Director, the accused, in connivance with certain private contractors/vendors, indulged in demand and acceptance of illegal gratification in exchange for extending official favours," a CBI spokesperson said in a statement.

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Besides Kumar, the CBI has also arrested his brother B Harshavardhan, and SMPP CEO Ashish Kansal in connection with the case.

"During searches conducted at the premises of the accused public servant in Pune Rs 1.73 Crore in cash was recovered. Further, searches at the premises of the accused at Mysuru, Bengaluru and Delhi were conducted and approx Rs 50 Lakh in cash and incriminating documents were recovered," the spokesperson said.

The agency alleged that Kansal, the CEO and promoter-director of SMPP Limited, a company engaged in drone technology and manufacturing of ammunition, maintained regular contact with Kumar regarding an official contract of Rs 500 crore, awarded to SMPP for the supply of ammunition to MIL, over a period of one year.

In pursuance of the conspiracy, Ravit Kumar Tewatia, an employee of SMPP, was also in contact with Kumar, the CBI alleged.

The FIR said Kumar had been routing and parking much of the illicit proceeds through his wife and brother.

Both are now accused of abetting the offence by helping hide and retain the money, and have been named in the FIR, the CBI added.