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Several key questions before investigators

Copter scam: Benchmark cost worked out at Rs 4,877.5 cr
Last Updated 30 April 2016, 19:57 IST

Agencies quizzing former IAF officials in the VVIP chopper scam are seeking answers for several key questions, which will help them to crack the case.

Some of the important questions before the investigators are why the benchmark price was kept so high; why 4 additional Agusta choppers were purchased and why the Defence Ministry violated the procurement norms 8 times by using an emergency clause of the Defence Procurement Procedure (DPP), 2006.

The benchmarked cost was worked out by the contract negotiation committee at Rs 4,877.5 crore (Euro 727 million) as against the total project cost of Rs 793 crore, as approved by the government in January 2006. The benchmark is required to negotiate the purchase price.

The deal was finally stuck at Rs 3,727 crore (Euro 592 million)— almost 4.7 times higher than the price suggested by the Air headquarters, when it submitted the project for approval at the Acceptance of Necessity (AON) stage.

Such wide price difference raised eyebrows at the Finance Ministry, which in July 2009, pointed out that the difference between the final negotiated price and the estimated cost at the time of AON appeared to be “abnormally high.”

The Central Bureau of Investigation on Saturday questioned Air Marshal J S Gujral, former deputy chief of the IAF incharge of procurement. Former IAF chief Air Chief Marshal S P Tyagi, whose name figured prominently in the choppergate scam is likely to be questioned on Monday.

The CBI so far, has investigated more than 100 witnesses.

A subsequent audit by the Comptroller and Auditor General observed the Defence Ministry did not follow DPP-2006 to seek all cost-related information from the vendor before formulating the commercial offer. No such request was made.

“This assumes greater significance in view of the fact that the contract negotiation committee has no clear reference base to arrive at a realistic cost,” the CAG said.

Another question before the probing officials is why the number of helicopters went up to 12 though the Indian Air Force initially proposed to purchase only 8 choppers—5 in VIP configuration and 3 in non-VIP configuration.

The requirement was increased at the insistence of the Special Protection Group (SPG), responsible for VIP security.

Past records of 11 years showing low utilisation (29%) of the VIP chopper fleet was ignored, resulting in an additional cost of Rs 1,240 crore for those four helicopters.

The SPG was also behind the change in the specification related to the height of the aircraft that ultimately favoured Agusta.

An emergency clause (Paragraph-75) of the DPP-2006 was used 8 times to deviate from the procurement norms, benefitting the company.  ‘BJP getting trapped in its own deceit’

The BJP is getting trapped in its own game of deceit, the Congress claimed on Friday after the Centre issued another clarification in connection with the AgustaWestland controversy, reports DHNS from New Delhi.

Seeking to turn the tables on the BJP, Congress seized upon BJP president Amit Shah’s reported remarks terming Finmeccanica, the parent company of AgustaWestland, a “bogus company” and the delay in investigating the scam.

“Will Amit Shah ask the Modi government why it has been protecting the same bogus company for the last two years as the CBI/Enforcement Directorate investigation has reached no conclusion,” Randeep Singh Surjewala, incharge of AICC Communication Department, told reporters here.
 

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(Published 30 April 2016, 19:57 IST)

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