NEW DELHI: The Central Bureau of Investigation has filed a chargesheet against the then CMD of Air India, Arvind Jadhav, SAP India and IBM India in connection with alleged irregularities in procurement of software worth Rs 225 crore by the national carrier in 2011, officials said on Sunday.
CBI had registered the case on the recommendation of the Central Vigilance Commission (CVC), which had found prima facie procedural irregularities in the procurement of the software, according to sources in the investigation agency.
The chargesheet, filed after nearly six years of probe, also names six others under IPC section 120-B (criminal conspiracy) and provisions of the Prevention of Corruption Act, they said.
CVC, in its note to CBI, had said that an initial probe by Air India’s chief vigilance officer showed that the national carrier had selected the Enterprise Resource Planning (ERP) software system from SAP AG without following proper tendering procedure. It was also alleged that there was no approval from the civil aviation ministry even though Air India had claimed that it had made a presentation before the Group of Secretaries on July 9, 2009, and before the Group of Ministers in 2010.
The commission said that Air India selected the software from the largest ERP provider of the world without justifying the need for the same since a similar system from Oracle was already in operation. It was said that the Oracle system had some problems but no effort was apparently made to either set them right or upgrade the existing system. Also, the open tender system was not adopted for procurement of the new software, the CVC said. “Instead, the contract was awarded to SAP and IBM on nomination basis.”
CBI had registered the case on the recommendation of the Central Vigilance Commission (CVC), which had found prima facie procedural irregularities in the procurement of the software, according to sources in the investigation agency.
The chargesheet, filed after nearly six years of probe, also names six others under IPC section 120-B (criminal conspiracy) and provisions of the Prevention of Corruption Act, they said.
CVC, in its note to CBI, had said that an initial probe by Air India’s chief vigilance officer showed that the national carrier had selected the Enterprise Resource Planning (ERP) software system from SAP AG without following proper tendering procedure. It was also alleged that there was no approval from the civil aviation ministry even though Air India had claimed that it had made a presentation before the Group of Secretaries on July 9, 2009, and before the Group of Ministers in 2010.
The commission said that Air India selected the software from the largest ERP provider of the world without justifying the need for the same since a similar system from Oracle was already in operation. It was said that the Oracle system had some problems but no effort was apparently made to either set them right or upgrade the existing system. Also, the open tender system was not adopted for procurement of the new software, the CVC said. “Instead, the contract was awarded to SAP and IBM on nomination basis.”
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
