The defence ministry has sought a CBI probe into the allegations of kickbacks in the Embraer aircraft deal.
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The allegations of corruption in the deal surfaced in a Brazilian paper which alleged the Embraer had taken the services of middlemen to clinch the deal of aircraft supply in Saudi Arabia and India.
A Brazilian newspaper had claimed that the US Justice department was scrutinising Embraer’s deal with India.
DRDO has already sought a report from the Brazilian firm, which has said it has been looking into graft allegations over the last five years.
According to Indian defence procurement rules, middlemen are strictly barred in such deals.
During a PE, the agency can not record statements or carry out searches.
Leading Brazilian news paper Folha de Sao Paulo had reported last week that Embraer paid commissions to a UK-based defence agent to finalise the United States dollars 208-million deal with India.
India’s DRDO purchased three EMB-145 aircraft from Embraer in 2008 for $210 million for the homegrown AEW&C program to be used by the Indian Air Force (IAF).
In the letter sent on Saturday, the DRDO has given Embraer a period of 15 days to explain with details the news report, which was based on investigations by the Federal Public Prosecutor’s Office in Brazil.
The Defence Ministry had requested a CBI investigation on Wednesday.
The US has been investigating Embraer since 2010 under Foreign Corrupt Practices Act and recently expanded its investigation into Embraer’s sales in India.
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The scope of investigations has spread to eight countries.
