Rahul Bedi - IHS Jane's Defence Industry
27 July 2017
The Indian Air Force (IAF) may not procure 38 additional Swiss Pilatus PC-7 Mk II tandem-seat basic trainer aircraft after federal investigations associated with the import of 75 similar platforms in 2012 gathered momentum in recent weeks.
Official sources said India’s Central Bureau of Investigation (CBI) had registered a Preliminary Enquiry (PE) in June into the earlier Swiss BTA, which was valued at USD1 billion. This ‘seriously jeopardises’ the supplementary PC-7 procurement, approved by the Ministry of Defence (MoD) in March 2015, a source told Jane’s .
The PE is believed to have followed inquiries by the federal tax authorities into the affairs of an Indian businessman, whose firm may have been linked to the procurement.