New Delhi: The Defence Research and Development Organisation (DRDO) will seek an explanation from Brazilian aerospace conglomerate Embraer on alleged kickbacks in a deal for aircraft during the UPA regime, the Defence Ministry said on Saturday.
Embraer in 2008 sold three EMB 145 AEW & C (Airborne Early Warning and Control) aircraft to the Indian government. The deal was worth $208 million.
"The DRDO to seek explanation and details from manufacturers of Embraer aircraft on the media reports on deal for the aircraft signed in 2008," the ministry said in a tweet.
"On receipt of information by DRDO further steps may be initiated," the tweet said.
This comes after a report in Brazilian newspaper "Folha de Sao Paulo", saying investigations have been opened by the US government to establish whether Embraer paid bribes to obtain contracts abroad.
According to the report, the company has been under investigation by the US Justice Department since 2010 when a contract with the Dominican Republic raised the Americans' suspicions.
Since then, the investigation has widened to examine business dealings with eight more countries, including India and Saudi Arabia.