NEW DELHI: The CBI has registered a case against unknown officials of Air India, German firm SAP AG and American computer major IBM for criminal conspiracy, cheating corruption in connection with alleged irregularities in procurement of software worth Rs 225 crore by the national carrier in 2011.
“The Central Bureau of Investigation has registered a case against unknown officials of Air India, German Software company & another company of USA and other unknown persons U/s 120B r/w 420 of IPC & Sec. 13(2) r/w 13(1)(d) of PC Act 1988 on a reference from Central Vigilance Commission. The allegations are regarding improper procurement of software for Rs.225 Crores (approx.) by Air India in 2011,” the CBI said in a statement.
This matter had earlier been enquired into by CVO, Air India who in his report to CVC had found a number of irregularities in this procurement, the CBI added.
The CBI has registered the case on the recommendation of the Central Vigilance Commission which found prima facie procedural irregularities in the procurement of the software from the accused firms, agency sources said.
After considering the reports of Chief Vigilance Officer of Air India, the Commission in a communication to CBI said it was of the view that there were "serious procedural and other irregularities" in the procurement as well as the amount of money paid and the extent of services rendered to Air India.
The CVC had requested the CBI to probe the "irregularities in the tendering process, award of contract and undue benefit caused to the German firm SAP and American giant IBM.
The CVC had also sought probe against those who had dealt with the tendering process and investigate irregularities relating to the registration by the Directorate General of Supplies and Disposal.
In its communication to the CBI, the CVC had highlighted that the probe by the CVO pointed out that the Air India had selected the Enterprise Resource Planning (ERP) software system from SAP AG without following proper tendering procedure, justification or talking due approval from the Ministry of Civil Aviation.
The CVO had found that the ERP system of Oracle was already in existence and no effort was made to upgrade the existing system.
The German firm had suggested to the national carrier the name of IBM for supplying the hardware to Air India.