What is Tatra Truck Scam in Defense Sector of India?


Tatra Truck Scam, an International Fraud in Defense Sector shames a habitually Corrupt Nation India

It was revealed by Army chief, General VK Singh, that there was a bribe offered of INR 14 crores. The idea was put forth by a lobbyist for a truck supplier who had provided the Indian Army with overpriced vehicles that were approximately 7,000 in number. In fact, what’s worse is that these vehicles performed poorly when they were put to use. Even though this news came to light, what shocked everyone was the fact that this supplier, Tatra, a Czech manufacturer, was not blacklisted. The trucks were provided through a Defence Public Sector Undertaking Bharat Earth Movers Ltd.
Defense Scam Truck Display
The middleman in this entire fuss met General VK Singh and demanded for a clearance of another fleet of 1600 vehicles in the year 2010. This was in the month of September. This was the reason as to why the lobbyist made an offer of 14 crores. However, this rule was change in 2014 when it was declared by the Indian government that a number of manufacturers could pitch in their numbers for the contract through an open and public bidding. Now, it is obvious that this did not go down well with Tatra. After all, it had been able to maintain its monopoly for nearly 25 years. that is definitely not s short period of time. Later, it became one amongst the contenders. But as fate would have it, the contract has not been given to any supplier since then.

Corruption by Overpricing in Indian Defense Scam

For those who do not know it yet, the all-weather all-terrain trucks of Tatra are put to use when there is a need to transport missiles, artillery and troops. The manufacturing process of these bulky vehicles takes place in the Czech Republic. Please note that the expenditure was huge. This means that a truck which would cost nothing more than 40 or 50 lakhs in Europe was sold to the Indian subcontinent at an escalated price which would be double than the actual amount. If you look for similar tucks and modes of transport in the Indian context, then even a common man can easily say that Ashok Leyland and Tata Motors supply it for 16-18 lakhs. The same goes for parts of the trucks.

Message of Whistleblower

Now, even if the masses could adjust to their taxes being spent like this, it was actually all futile because the performance of these vehicles was nothing like they were supposed to be. They under performed terribly. There was a whistle blower, Anil Bakshi, who later let the cat out of the bag ad literally spilled the beans. He said that the army was not at all happy with the performance of the trucks. In fact, in 2009, 45 Tatra trucks were brought which were later found to be faulty, have damaged tyres and old batteries. That is when he had to put his foot down and said a clear no when he was approached for clearance. They just could not be put to use.

Involvement of Middlemen in Scam

TatraSipox is the middleman that is used by India in order to buy the trucks. TatraSipox is a London-based trading company. However, this is breach of the law. This means that the government rules are such that it Is necessary and mandatory that all defense equipment should be purchased directly from the manufacturer. This is where the Indian side has gone wrong. Being in the army, it is important be able to set an example for the nation and other citizens. In fact, the rules have been in written since time immemorial, but no strict action has been taken against offenders. 


 Tags:  Scam Alert, Scam, Fraud, Truck Scam, Truck gate, International Scam, Defense Scam

See also:

Ponzi Scam

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