CBI sought nod to prosecute Shashi Kant Sharma after vetting two reports on VVIP helicopter scam

The federal agency, probing alleged irregularities in the 3,600 crore deal, has sought sanction from the government to prosecute the now-retired Sharma, who was also a former Comptroller and Auditor General and defence secretary, ET reported on Saturday.

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Shashi Kant Sharma

New Delhi: The Central Bureau of Investigation sought approval to prosecute former bureaucrat Shashi Kant Sharma in the alleged VVIP helicopter scam after it evaluated two reports he had been involved in — he had approved one and had been part of the committee that prepared the other — among other evidence.

Sharma, then the director general of acquisition in the defence ministry, had approved a technical evaluation report in December 2007 that allowed AgustaWestland to participate in the field evaluation tests under an air force tender, when it was not even “fully compliant” to do so, people in the know said. In 2009, he was part of the contract negotiation committee (CNC) that recommended the purchase of helicopters from the British company to carry VVIP passengers, the people claimed.

The federal agency, probing alleged irregularities in the Rs 3,600 crore deal, has sought sanction from the government to prosecute the now-retired Sharma, who was also a former Comptroller and Auditor General and defence secretary, ET reported on Saturday.

Sharma has denied any wrongdoing. In a text message to ET on Friday, he said: “I had a long unblemished service record for over forty years and nobody can blame me for any mala fide action or decision. I strongly and firmly deny any such frivolous allegation.”

While the British company could not have qualified for the bid after the technical evaluation, the people in the know of the investigation said it had sent two “representative” choppers to participate in the field evaluation tests but not the one it offered to the air force. Instead of AW-101, which India decided to finally buy, it had sent a Merlin Mk3A and a CIV 01, they said.

Then in 2009, the defence ministry sent the recommendations of the contract negotiation committee to the finance ministry, the people said.

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“The finance ministry raised objections with regard to certain deviations, price difference, evaluation trials not conducted in Indian conditions, procedural violations, changes to technical parameters and others,” said a senior government official, speaking on the condition of anonymity. In response, the defence ministry had given point-by-point clarifications, he added.

In August 2009, in a letter to the then defence secretary, Sharma had said the flagged “deviations” had been deliberated upon and cleared at the appropriate level.

Sharma, however, added that it was desirable that the finance ministry was on board when the matter was submitted to the Cabinet Committee on Security for consideration, the people said. Sharma was part of the meetings held with the finance ministry, they added. The objections raised by the finance ministry were also sent to the Cabinet committee.

ET reported on Saturday that Sharma, then a joint secretary at the defence ministry, had also approved the “draft” request for proposal for the purchase in 2006. The CBI that examined the document has found deviations in that approval process as well.

Along with Sharma, the CBI has also sought approval to prosecute Air Vice Marshal Jasbir Singh Panesar, former deputy chief test pilot SA Kunte, Wing Commander Thomas Mathew and Group Captain N Santosh. These retired officials could not be contacted for comment.

The CBI had sent the request to prosecute them in March.

The agreement to buy the helicopters from AgustaWestland was signed during the UPA regime. The government later cancelled it, following allegations that bribes were paid to win the deal.

The agency is set to file a supplementary charge sheet in the case after it gets a response from the Ministry of Defence and the Department of Personnel and Training on the request to prosecute these officials.