The Defence Ministry on Wednesday asked the Central Bureau of Investigation to start a preliminary enquiry into the allegations of corruption in the Embraer aircraft deal, reported ANI. The $208-million (Rs 1,383 crore approximately) deal was signed during the first term of the United Progressive Alliance rule in 2008, and involved the purchase of three aircraft from the Brazilian company. It was signed between Embraer and the Defence Research and Development Organisation.

Defence Minister Manohar Parrikar had earlier hinted at a CBI investigation, reported the Times of India. "If there is a criminal angle, then we can give it to CBI. The defence ministry cannot investigate criminal angle," Parrikar had said.

According to Brazilian daily Folha De São Paulo, the United States Justice Department had started investigating Embraer deals all over the world in 2010 when a contract with the Dominican Republic raised suspicions.

The DRDO has also sought an explanation from Embraer after reports alleged that the company hired an Indian middleman to get the deal finalised, reported The Hindu. According to Indian military procurement laws, middlemen are banned from handling defence deals.

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Embraer’s defence sales manager Albert Phillip Close told the Folha De São Paulo that a former sales director of the firm told US investigators that the firm had hired a representative from the United Kingdom to get the deal through.

This is the second major defence agreement under the UPA government to come under scrutiny. The AgustaWestland helicopter pact turned into a huge financial and political controversy after allegations arose that executives had paid off UPA government officials to secure the deal for 12 VVIP helicopters.