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This Article is From Mar 30, 2012

Tatra trucks for Army: Defence Minister was alerted to violation of rules, claims report

Tatra trucks for Army: Defence Minister was alerted to violation of rules, claims report
New Delhi: The CBI has begun investigating the purchase of 7000 trucks by the Indian Army in alleged violation of basic rules. Today, a newspaper reported that Defence Minister AK Antony was alerted to these problems in 2009.

Between 1986 and 2010, the Army was sold Czech-manufactured Tatra trucks to transport troops and artillery. Their price and performance has often been debated. But the new scrutiny comes after the Army Chief's startling disclosure that he was offered 14 crores by a lobbyist who wanted him to clear "sub-standard" trucks.

General VK Singh did not name the lobbyist who offered him the kickback, or the company that he represented. But a few weeks ago, an Army press release accused a retired officer, Lt General  Tejinder Singh, of offering bribes on behalf of Tatra and Vectra.

Tatra is the Czech manufacturer of the trucks. Vetra is a London-based company that is the largest share-holder in Tatra; it supplied parts to a defence public sector unit BEML in Bangalore. Here, the trucks were assembled and then delivered to the Army. But Tatra allegedly uses a spin-off company named Tatra Spinox to route its parts to India. This is a  violation of defense guidelines, which state that all equipment have to be bought directly from the original manufacturer and middlemen cannot be involved.

A report today in a Mumbai newspaper, DNA, says that in 2009, Defence Minister AK Antony was alerted to the fact that BEML was using a middleman in its Tatra truck procurement. The paper says that in October 2009, senior Congress leader Ghulam Nabi Azad, who was then Health Minister wrote to Mr Antony on behalf of their party president Sonia Gandhi and asked him to investigate the allegations.

Mrs Gandhi had received a complaint from a Karnataka union that said BEML, which is based in Bangalore, was using a UK agent. The defence ministry responded to say it would look into the matter. Since then, the ministry has not offered any explanation.

The controversy surrounding Tatra trucks is not entirely new. Military experts have complained repeatedly that the all-weather all-terrain trucks, used to transport troops and artillery, are tough to service. Some allegedly arrived with defective tyres in the army. Spare parts are tough to find. A Right to Information appeal accessed by NDTV shows that the trucks were sold to the army at 80 lakhs each, nearly twice their price in Europe, and three times what other manufacturers like Ashok Leland and Tata have offered for similar vehicles. In 2010, the defence ministry said that it was introducing an open bidding system for the supply of trucks. Tatra's lengthy monopoly ended. Four manufacturers including Tata, Ashok Leland and Tatra are now competing for the contract.

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