First casualty in Tatra scam: BEML Chief suspended

In a first casualty in the Tatra scam, that was exposed by the former Indian Army Chief General VK Singh, the Defence Ministry has suspended BEML Chief VRS Natarajan.

MoD's statement

"The Government has put the CMD of BEML Shri VRS Natarajan under suspension following a recommendation by the CBI that he should be kept away from the post to ensure fair investigation.    The charge of CMD has been given to P Dwarkanath, the senior most functional Director in BEML.  The CBI is currently investigating into various charges against Natarajan."

(Update at 7.32 pm

The Tatra Scam has claimed its first scalp as Defence Ministry on Monday suspended the defence major Bharat Earth Movers Limited (BEML) Chief VRS Natarajan following CBI recommendations to ensure “fair” probe into the matter.

Natarajan, head of the ‘Navratna’ Public Sector Undertaking (PSU) BEML for 12 years, has been in the eye of storm since former Indian Army Chief General VK Singh blew off the lid from the irregularities in supply of the trucks from the Czech firm. The former Chief had levied charges that the trucks in service with the Indian Army for the last 25 years were “over-priced” and “sub-standard”.

In a brief statement Defence Ministry’s spokesperson Sitanshu Kar said: “The Government has put the Chief Managing Director of BEML VRS Natarajan under suspension following a recommendation by the CBI that he should be kept away from the post to ensure fair investigation.” Following Natarajan’s suspension BEML’s senior most functional director P Dwarkanath will officiate as the Public Sector Undertaking’s Chief.

However, the suspended BEML Chairman insisted that he would come out clean. “I respect the decision of the government. I will come out clean in the case,” Natarajan told reporters in Bangalore.

Earlier on June 6, the Defence Ministry had sought an explanation from Natarajan for going to the media threatening General VK Singh to either apologize or else he will be slapped with a defamation suit. The Ministry said that no permission was given to the BEML Chairman in this regard.

General VK Singh had kicked up a furore after he claimed that a bribe offer of Rs. 14 crore was made to him on behalf of Tatra trucks to clear more acquisition of these sub-standard trucks. The first of Tatra trucks were inducted into the Indian Army in 1986 and presently there are 7,000 of these trucks with the force. The Tatra trucks are the backbone of the Indian Army as its whole missile systems and Cold Start or “Pre-emptive” Strategy to mobilize troops swiftly is based on these trucks, with flexible axle – “the only of its kind in the world for on road and off road application”.

BEML used to manufacture the trucks in India under license from Vectra. By now BEML was envisaged to indigenize the trucks completely, but, only 60 percent of the heavy duty vehicles’ components are manufactured in India.

The Defence Ministry had ordered the CBI to probe Natrajan’s role in the dubious deal. Defence Ministry AK Antony had sanctioned the probe in February after a two-and-half-year-long inquiry by Ministry and BEML’s officials beginning 2009 confirmed the foul play.

BEML had come under scanner, after Antony’s Cabinet colleague Ghulam Nabi Azad wrote written a letter to Congress President Sonia Gandhi alleging irregularities on the part of Navratna Company in the Tatra truck deals. The letter was then forwarded to the Defence Ministry for investigation. Azad had got the complaints from a DRDO official Dr. D Hanumanthappa

 

Following this the Defence Ministry claims that the vigilance wings of the Defence Ministry and BEML have been examining the matter and there have been communication between the CBI and the Chief Vigilance Officer of BEML on these allegations. It was after this inquiry that Antony sanctioned a CBI probe into the matter on February 21 this year.