CBI arrests lawyer Gautam Khaitan in 2008 Embraer bribery case

New Delhi, September 1

The anti-graft central probe agency CBI has arrested Delhi-based lawyer Gautam Khaitan in connection with its probe into a case relating to alleged commission paid by Brazilian aircraft manufacturer Embraer to a UK-based NRI middleman to swing a three-aircraft deal with the Defence Research Development Organisation (DRDO) worth US$ 210 million in its favour in 2008, officials said on Thursday.

The officials said the agency arrested Khaitan last week, nearly six years after registering an FIR on the basis of a Brazilian newspaper report exposing alleged kickbacks of US$ 5.76 million paid by the company in the deal for fully customised EMB-145 aircraft for the DRDO, which were to be fitted with airborne early warning and control (AEW&C) system.

Khaitan, who has also been named in the chargesheet in the Agusta Westland VVIP Chopper purchase case, was questioned for nearly four days by CBI officials after his arrest on August 25, the officials said, adding that he was later sent to judicial custody.

The CBI suspects that Khaitan was instrumental in moving the alleged bribe money to India through a web of transactions using different companies abroad and in India, the officials said.

The agency had booked UK-based arms dealer Vipin Khanna and two companies — Brazil-based Embraer and Singapore-based Interdev Pte Ltd — in connection with the alleged corruption in the deal that was inked on July 3, 2008.

It is alleged that the kickbacks were allegedly routed from subsidiaries of Embraer to Khanna through Interdev to be used for influencing officials in the Defence Ministry and the DRDO.

According to defence procurement rules of India, middlemen are strictly barred in such deals.

The CBI’s preliminary enquiry had found that due to alleged mediation by Khanna, DRDO officials moved a proposal for the purchase of aircraft from Embraer on a single vendor basis after which the PE was converted into an FIR in October, 2016.