India suspends BEML head in graft investigation

Scandal involves allegations of former army chief to India he was offered $ 2.8 million bribes to buy a defective batch of Tatra trucks for the army.
The ministry of defense said V.R.S. Natarajan, chairman of BEML, an engineering and defense company, was asked to leave his post for the duration of the inquiry by the Central Bureau of Investigation (CBI).
"Government is put to MD of BEML VRS Natarajan under suspension following a recommendation by the CBI that he should stay away from the post to ensure a fair investigation," a government statement said.
On Saturday, an Indian businessman and his wife were charged after the CBI investigated allegations that government officials were bribed to stop a Swiss subsidiary Rheinmetall AG of Germany from that blacklisted.
The CBI is investigating after former Army chief BEML General Vijay Kumar Singh said in March he was offered a $ 2.8 million bribes to buy defective Tatra trucks for the army. Allegations that are seen as an attack on the defense ministry for not taking action on corruption in arms procurement.
Assembles BEML Tatra trucks for the army. Tatra is a Czech company, but some companies are now involved in the its subsidaries, including British-based Vectra.
India's defense ministry has put in place strict guidelines for arms deals with cracking in bribery and corruption at a time when the third-largest economy in Asia is on an arms-buying spree to modernize the military.
India is the world's largest arms importer.
In other investigations, Italian magistrates are looking into allegations that payments are made to assure a 560 million-euro deal with Air Force helicopter of India won by Finmeccanica.

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