CBI names George Fernandes in arms scandal

In a significant development in the Tehelka expose on defence scams, the Central Bureau of Investigation has registered a first information report against former defence minister George Fernandes, his associate Jaya Jaitley, accused of receiving a bribe of Rs 2 crore, and former navy chief Admiral Sushil Kumar for alleged irregularities in purchasing the Barak missile system from Israel in 2000.

The FIR filed in a designated court on Monday alleged that a sum of Rs 2 crore was paid to Jaitley, who acted as an 'agent' to clinch the Rs 1,150-crore deal to buy seven Barak anti-missile defence systems from state-run Israel Aircraft Industries.

Jaitley was then president of Fernandes' Samata Party.

R K Jain, who was then treasurer of the Samata Party and was also named in the FIR, received a bribe of several lakhs, the CBI alleged.

The CBI alleged former naval chief Kumar 'colluded with other accused to put up a note' to Fernandes to import the Barak systems, despite objections from the Defence Research and Development Organisation.

Fernandes 'not only approved the proposal but tried to get it approved by the CCS', the agency alleged.

The deal for acquiring the Barak systems and 200 missiles for fitting on naval warships was signed on October 23, 2000.

In 2001, a sting operation by the Tehelka website had exposed alleged irregularities in several weapons deals, including the one to purchase the Barak systems.

Fernandes quit as defence minister after the scandal broke but returned to the post after the 9/11 terror strikes in the US.

Jaitley too resigned her post in the Samata Party.

The CBI disclosed the registration of the FIR at a crowded press conference on a day when its officials conducted searches at premises of several arms dealers in five cities.