NEW DELHI, JAN 7: Justifying the Navy Chief's sacking, Defence Minister George Fernandes dismissed Niloufer Bhagwat's charge that it was a result of a ``nexus'' between arms dealers, politicians and bureaucrats. The Minister said that Admiral Bhagwat had never informed him -- either orally or in writing -- about such a nexus but had only ``confided in his wife.''In fact, records with the The Indian Express show that Naval Headquarters and the Defence Ministry had discussed, at length, the operations of two arms-suppliers, Crown Corporation and Makalu Engineers. (Crown is headed by former Navy chief Admiral S N Nanda. And Makalu was launched in 1992 by one Commodore (retd) Pradeep Sachdeva who died two years ago -- the company is now run by his wife and son.)
Naval Headquarters had conducted a full-fledged inquiry into these companies. And after a report was filed by the Moscow-based Counsellor (Coordination) and approved by the Indian Ambassador, Makalu was blacklisted by the DefenceMinistry.
Representatives of both these companies extended hospitality to Vice Admiral Harinder Singh in Moscow and St. Petersburg during his private visit in May 1997. (It was Vice Admiral Singh's appointment that Admiral Bhagwat refused to implement following which he was sacked.)
Vice Admiral Harinder Singh's stay with representatives of these two companies figured in his Annual Confidential Report (ACR) -- this reference was later expunged. When contacted by The Indian Express today, Harinder Singh said he was unaware that his host in Moscow, retired Commodore V K Chaudhury, worked with Crown. Or that retired Commander D S Dagar, in St Petersburg, had any links with Makalu. ``I have nothing to do with these companies,'' he said. ``And since I am posted here in Port Blair, I have no connection with any procurement or supplies for the Navy.''
Sources say that soon after the BJP Government came to power, Admiral Bhagwat met Fernandes and apprised him of the details on Crown and Makalu. Andduring the meeting, the Defence Minister reportedly sought Bhagwat's advice on how the matter should be handled. Bhagwat is said to have assured him that he would take all possible steps to curb these companies' ``influence.''
Fernandes told The Indian Express that he had no ``recollection of such a meeting.'' As for the Defence Ministry's blacklisting Makalu, he said: ``I have to check the files.''
Among the facts on Makalu that surfaced as a result of the official investigation:
Makalu's proprietor Sachdeva made ``inquiries'' with a Russian company, RUBIN, and its subsidiary, Marine Ship Service Ltd, for undertaking repairs for the 877 EKM submarine for the Navy. Makalu had made a ``similar'' effort to secure an agency arrangement for working on the Navy's Propulsion system. Crown and Makalu were instrumental in supplying gas turbines, valves, compressors, even trucks to the Navy and Army. Two companies, Baltic Machines and Sudmasc, which supplied shafts and generators to theNavy, confirmed that Makalu was their official representative in India.Makalu's interest in the submarine and the propulsion system were mentioned in a confidential note circulated in the Defence Ministry by the Director (Navy). This note, available with The Indian Express, says that because of this, as per Government policy, there should be no dealings with agents or representatives of these companies.
The note reads: ``Officers may also be directed to remain vigilant about the activities of Makalu...Further, Naval Headquarters are also requested to investigate as to how information relating to 877 EKM is reaching M/S Makalu and take action against the officers concerned.''
When contacted by The Indian Express, representatives of both the firms, said they ``hardly'' had any dealings with the Navy. And, therefore, the issue of their representatives hosting Vice Admiral Harinder Singh in Russia was ``frivolous.'' Crown president Admiral Nanda said that it was his son, former acting Lt.Commodore Suresh Nanda, who operated Crown's London office and had ``probably'' employed Harinder Singh's host Commodore V K Chaudhury in Moscow. ``But I have checked from my son and he says that no supplies are now being made by us to the Navy. So what is the controversy about?''
Commodore Chaudhury, according to proprietors of both the companies, worked briefly with Makalu before joining Crown. At a personal level, Vice Admiral Harinder Singh, Commodore Chaudhury, and Makalu's Commodore Sachdeva were Navy friends and batchmates.
The Sachdeva family claims to be unaware of the controversy surrounding the company. According to Sachedva's wife, Ishpinder, while at one point Makalu company was handling ``substantial'' import and export orders (``of nuts, bolts and bearings, not arms'') for the Navy, the business had all but closed down now. Son Gundeep, sitting in Makalu's plush office in Safdarjung Enclave, told The Indian Express: ``After reading the press reports I have spoken to Commander Dagarwho tells me Vice Admiral Harinder Singh had stayed in his house. Commander Dagar used to work full-time with us about a year ago. But now he does very little work for Makalu.''
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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