Home FEATURED NEWS CBI Charges Air India ex-CMD, IBM, SAP in Software Purchase Case | India News

CBI Charges Air India ex-CMD, IBM, SAP in Software Purchase Case | India News

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NEW DELHI: The Central Bureau of Investigation has filed a chargesheet in opposition to the then CMD of Air India, Arvind Jadhav, SAP India and IBM India in reference to alleged irregularities in procurement of software program price Rs 225 crore by the nationwide provider in 2011, officers mentioned on Sunday.
CBI had registered the case on the advice of the Central Vigilance Commission (CVC), which had discovered prima facie procedural irregularities within the procurement of the software program, in keeping with sources within the investigation company.
The chargesheet, filed after practically six years of probe, additionally names six others underneath IPC part 120-B (legal conspiracy) and provisions of the Prevention of Corruption Act, they mentioned.
CVC, in its be aware to CBI, had mentioned that an preliminary probe by Air India’s chief vigilance officer confirmed that the nationwide provider had chosen the Enterprise Resource Planning (ERP) software program system from SAP AG with out following correct tendering process. It was additionally alleged that there was no approval from the civil aviation ministry despite the fact that Air India had claimed that it had made a presentation earlier than the Group of Secretaries on July 9, 2009, and earlier than the Group of Ministers in 2010.
The fee mentioned that Air India chosen the software program from the biggest ERP supplier of the world with out justifying the necessity for a similar since an identical system from Oracle was already in operation. It was mentioned that the Oracle system had some issues however no effort was apparently made to both set them proper or improve the present system. Also, the open tender system was not adopted for procurement of the brand new software program, the CVC mentioned. “Instead, the contract was awarded to SAP and IBM on nomination basis.”

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