CBI to conclude probe into $210 million Embraer deal by November 2025

The Central Bureau of Investigation (CBI) will conclude its probe in the $210 million Embraer deal, going on since 2016, by November this year, people familiar with the development said.

The federal agency is waiting for reply of letter rogatories (LRs) or judicial requests from some countries on the matter, after which a supplementary charge sheet on any role of public servants in the defence deal will be detailed.

Defence Research & Development Organisation (DRDO) and Brazilian firm Embraer signed a contract in 2008 for the supply of three EMB-145 aircrafts . The allegation is that Embraer engaged middleman Vipin Khanna (who died in November 2019) and in lieu of facilitating the deal, the firm paid him an amount of $5.76 million through Singapore based firm, Interdev Pte. Ltd., in 2009. It was also alleged that this money was used by Vipin Khanna to influence the officials of the defence ministry.

The federal agency filed its first and main charge sheet in the case on June 1, 2023, naming Arvind Khanna (son of Vipin Khanna), businessman Anoop Kumar Gupta and Delhi-based lawyer Gautam Khaitan.

However, it kept the probe open against “public servants, Embraer and its office bearers and also to ascertain the end use of the commission”.

“We will complete the probe in Embraer deal by November 2025 and file a supplementary charge sheet, if evidence allows us to name anyone including public servants,” said an officer, who asked not to be named.

This person said that CBI got a court to issue six LRs seeking information from the UK, Singapore, Brazil, Switzerland, Austria and United Arab Emirates.

“Some of these countries have replied while Brazil is yet to give complete details,” said a second officer, who also requested anonymity.

According to CBI’s first charge sheet, details of which have been seen by HT, after the attack on Indian parliament in December 2001, India launched Operation Parakram. There was an operational need to urgently acquire an airborne early warning platform (AEWP).

During the year 2002, Indian Air Force (IAF) projected the need for indigenous development of AEW&C systems on an ‘executive jet’ platform for which a meeting between Indian Air Force (IAF) and DRDO was held at Air HQ, Delhi to discuss the modalities for developing an indigenous AEW&C system. Subsequently, a joint IAF-DRDO study team was constituted in May 2002.

According to the CBI, IAF and DRDO were analysing the scope of developing AEW&C system and the aircraft EMB-145 manufactured by Embraer, Brazil was being considered as the preferred choice for the AEW&C platform.

“In the meanwhile, Late Vipin Khanna was corresponding with the representatives of Embraer and was impressing upon the representatives - of M/s Embraer about his proximity to the higher political authorities in India and asked them to expedite for the agency agreement to provide services to Embraer for getting the contract for supply of aircrafts,” according to CBI’s first charge sheet.

In its charge sheet, CBI cited 35 witnesses and 77 documents running into 8,167 pages as evidence.

Embraer did not immediately respond to a query.