CBI closes Barak missile systems purchase case, says no evidence against accused

NEW DELHI: Seven years after it claimed a grand conspiracy involving huge amounts of bribe in the Navy’s purchase of Barak missile systems from Israel, CBI has closed the case admitting that it had no evidence against the accused, including former defence minister George Fernandes, ex-president of Samata Party Jaya Jaitly, former navy chief Admiral Sushil Kumar, businessman Suresh Nanda and others.

The Barak scandal came to light in 2001 when Tehelka released tapes showing several important people like R K Jain, treasurer of Samata Party and close aide of Fernandes, discussing bribes paid for swinging defence deals, including for the purchase of Barak missiles. Jain claimed that Rs 1 crore was paid by Nanda to Jain for ensuring that Fernandes clear the deal worth Rs 1,150 crore to procure Barak antimissile systems and missiles meant for ships. Initial CBI investigations had suggested that bribes worth Rs 174 crore had been paid.

In its closure report filed in a Delhi court two days ago, CBI claimed it did not find any substantial evidence to prove that bribes were paid. Sources said, "The alleged abnormality in giving the contract to Israel Aerospace Industries could not be substantiated."

Over the past six years, CBI questioned all the accused, including several navy officers, and conducted investigations in Israel apart from taking opinion from the law ministry. However, CBI brass recently concluded that the case should be closed. Sources said the contract and absence of evidence was discussed with the defence ministry several times in the past few years.

The deal was considered one of the biggest scams during NDA’s regime. The contract was signed on October 23, 2000, in which a $200 million order was placed with IAI for seven missile systems, along with armament from Rafael Armament Development Authority to be installed on Indian naval ships.