Vectra Group chairman Rishi under probe in Czech Republic too in Tatra matter

A day after the CBI registered a case in connection with alleged irregularities in the supply of all-terrain Tatra freight vehicles through the state-owned BEML to the Indian Army, it has emerged that Vectra Group chairman Ravinder Rishi – a majority stakeholder in Tatra – is under probe in the Czech Republic too in the Tatra matter.

The CBI had yesterday questioned Rishi – a British national of Indian origin – after booking him and unnamed officials of Defence Ministry, BEML and Army for alleged criminal conspiracy, cheating and relevant sections of Prevention of Corruption Act.

Rishi has so far refuted allegations of irregularities in the Tatra truks deal. But documents in possession of DNA newspaper show that a criminal complaint was filed against Rishi in the Czech Republic last year in the Tatra matter.

As per the complaint, Rishi misused his position in the board of Tatra Czech [the original equipment manufacturer (OEM) of Tatra trucks] to enable Tatra Sipox (UK) Ltd, a company Rishi’s Vectra Group incorporated in 1994 and now owns, to buy knock down trucks from Tatra Czech at below production cost. Tatra Sipox then sold the trucks to India’s BEML at a profit, causing huge losses to Tatra Czech since profits from the sale were being made by Rishi’s company, the newspaper reports citing the complaint.

“I hold for important the fact that TATRA Czech was selling Tatra truck to the British company [Tatra Sipox] margin-free, even at prices below the production costs. The entire margin, or all the profit from the transaction, has been earned by Vectra Limited in the UK,” states the complaint.

The complaint against Rishi was filed by Vaclav Laska, ex-chief at corruption watchdog Transparency International, following disclosures by a top Tatra Czech official. The investigations into the matter are being carried out by the Czech Republic’s Department for Detection of Corruption and Financial Offences.

The recent revelations hold significance in the wake of claims by Army Chief General VK Singh that he was offered a Rs14 crore bribe to clear a tranche of 600 sub-standard Tatra trucks.

Tatra trucks deal: CBI raids are still on

The CBI on Friday began searches at four places in Delhi and Bangalore in connection with the alleged irregularities in Tatra trucks deal. Reports said the raids are still on.

The development came hours after the agency registered a case in connection with the alleged irregularities and also called for questioning Vectra Group chairman Ravi Rishi, who is a majority stakeholder in Tatra.

British national Rishi, who is in the national capital for the Defence Expo, was last reported to be at the CBI headquarters for questioning in the case.

Rishi had earlier agreed to cooperate with the Central probe agency, which is probing the Army Chief’s claims that he was offered Rs 14 crore bribe to clear the purchase of 600 Tatra trucks.

According to reports, the FIR has been registered against the Vectra Group, which has a majority stake in the firm Tatra-Vectra and manufactures and supplies trucks to the Indian Army, and BEML - a defence PSU.

The FIR mentions several charges, including cheating and criminal conspiracy.

CBI Director AP Singh had examined a report forwarded by one of the joint directors of the agency who had opined that a case could be made out and a thorough investigation was required, the sources said.

The Defence Ministry has sent a reference to the CBI seeking a probe in the allegations. However, the agency is waiting for a complaint from Gen Singh before initiating a probe into his allegations.

The sources said based on the reference, two separate cases could be registered by the agency -- one related to the deal and another to the alleged bribery offer.

Rishi had earlier criticised the Army Chief for delaying the deal for trucks over alleged procurement related doubts.

Speaking to reporters, Rishi had maintained that there was nothing improper or illegal about previous Tatra truck-related procurements.

The businessman also went a step ahead to suggest that General Singh was more inclined towards giving the truck deal to another competitor called Ural.

The Tatra trucks have been used as missile carriers in the Indian Army for years.

Terming charges against the Vectra Group as baseless and unfounded, Rishi stated that large orders from the Indian Army come only after one year or one and a half years.

He had opined that the Army Chief may have blocked the Tatra deal for his own personal interests.

General Singh has questioned the procurement process and maintenance facilities related to Tatra trucks.

Reacting to alleged involvement of agents and lobbyists in placement of orders for the Tatra trucks, state-owned BEML chief V R S Natarajan has said, "In last 26 years, from 1986 onwards, BEML assembled manufactured, supplied 7,000 Tatra trucks. All of them have been done on single nomination basis, single inquiry basis.

"This type of equipment nobody in world makes, because of its superior technological features. When I am the single vendor and there is no competition, there is no influence required," he said.

The name of Tatra and Bharat Earth Movers Limited was taken by the Army in a press release issued by it on March 5, alleging that retired Lt Gen Tejinder Singh had offered a bribe on behalf of Tatra and Vectra Limited.