CBI files closure report in gun purchase case

CBI files closure report in gun purchase case

The CBI on Monday filed a closure report in the investigations into the "irregularities" in the purchase of anti-materiel rifles from South African firm Denel as corruption allegations could not be substantiated. The report was filed in special CBI court in Patiala House.

The closure report was filed after the agency went through the responses to the judicial requests from South Africa, the UK, Isle of Man and Switzerland. None of the responses from these countries showed any evidence to substantiate the allegations of corruption.
The CBI in its FIR filed in 2005 had alleged that South African government-owned Denel had paid kickbacks to Varas Associates for clinching the deal during the NDA government.

CBI claimed that alleged pay-off to Varas was made under the heads of technical assistance and consultancy.

However, South Africa in its response said that payments were made to Varas Associates but they were not for the deal of anti-materiel rifles, which are used by the army for bursting bunkers.

Denel was alleged to have paid 12.75 per cent commission to Varas for helping it secure the contract.

The CBI has booked unknown employees of the Defence Ministry, Denel Limited, Varas Associates, a company based in the tax haven of Isle of Man, and others.

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