The Central Bureau of Investigation (CBI) has taken a significant step in the alleged irregularities surrounding the procurement of software worth ₹225 crore by Air India in 2011. A charge sheet has been filed against the then CMD of Air India, Arvind Jadhav, as well as technology giants SAP India and IBM, along with six others. The case, registered on the recommendation of the Central Vigilance Commission (CVC), highlights procedural irregularities in the software procurement process.
After nearly six years of investigation, the CBI charged Arvind Jadhav, IBM India Private Limited, SAP India Private Limited, and six others under IPC section 120-B (criminal conspiracy) and provisions of the Prevention of Corruption Act.
The CVC, in its note to the CBI, revealed that the initial probe by Air India’s chief vigilance officer indicated that the national carrier had chosen the Enterprise Resource Planning (ERP) software system from SAP AG without following proper tendering procedures. Allegations were raised about the lack of approval from the civil aviation ministry, despite Air India claiming presentations before the Group of Secretaries in 2009 and the Group of Ministers in 2010.
The commission contended that Air India selected software from the world’s largest ERP provider, SAP AG, without justifying the necessity, as a similar system from Oracle was already in operation. While the Oracle system faced issues, no efforts were reportedly made to rectify them or upgrade the existing system. Moreover, the CVC noted that the open tender system was not adopted for the procurement of the new ERP software, and the contract was awarded to SAP and IBM on a nomination basis.
The charge sheet by the CBI marks a significant development in the case, shedding light on alleged irregularities and procedural lapses in the software procurement process by Air India. The involvement of key players, including the former CMD and major technology firms, adds complexity to the situation, warranting close scrutiny as the legal proceedings unfold.
Also read: https://newseense.com/india-uae-bilateral-investment-treaty-to-strengthen-economic-ties/
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