CBI Charges US-Based Company, Ex-Indian Scientist In Alleged Defence Scam

A US-based company has been charged by the Central Bureau of Investigation (CBI) for alleged irregularities in the purchase of 35 radio frequency generators for the Defence Research and Development Organisation (DRDO) in 2007.

Akon Inc and Priya Suresh, then a scientist in Defence Avionics Research Establishment (DARE) of DRDO, have been charged for the alleged fraud. The generators were purchased at a cost of $10,80,450.

35 units of generators had been shipped in three consignments to the DRDO in February 2009. The company, Akon, had received 90 per cent of the payment.

23 units, that had been sent to the DRDO, were shipped back to the US in the name of repair and upgrade within weeks of delivery and till now the company has not provided complete functional units.

Ms Suresh had recommended the units be sent back but there is no record of it. Subsequently, Ms Suresh cleared the remaining payment to the US company (10 per cent) despite the units being incomplete and sent back.

Out of the 35 units ordered, only 12 units, which are also non-functional, are with the DRDO presently.

After a preliminary enquiry, the CBI says they have found that Priya Suresh and the US-based company were involved in the alleged fraud. The company and Ms Suresh have been charged with cheating, criminal conspiracy and corruption charges.