In fact, the funding and functioning of C-1 India is the subject of the CBI probe in the Barak case and the Income Tax inquiry against him. During arguments in the Suresh Nanda passport case, the CBI alleged he had received “suspected huge foreign remittances” into the accounts of his companies C-1 India, Crown Corporation and Dynatron Services. The large volume of funds being routed to C-1 India and other bank accounts of Suresh Nanda also figure in the 597-page Income Tax appraisal report of the arms dealer. It was to “manipulate” this report that Nanda allegedly bribed Deputy Director Ashutosh Verma, the CBI said.

At present, all 41 OFB factories, including its ammunition, high explosive, field gun and small arms factories are on the C-1 India e-procurement list and its website displays 49 tenders for which vendors can currently bid.

OFC chairman Sudipta Ghosh, when contacted, told The Sunday Express that OFC’s contract with C-1 India began in September 2007 and came through the Directorate General of Supplies and Disposals. “We did not deal with C-1 India directly but were told by the DGS&D to work with them and around 200 tenders have been completed on the basis of this e-procurement via C-1 India. I am not aware of the ownership of the company or its links with Suresh Nanda,” the Chairman said.

In fact, OFC isn’t the only one doing business with C-1 India. Several Central and State Government departments are using C-1 India’s e-tendering net. These include Indian Railways, National Informatics Corporation, state government departments in Andhra Pradesh, Gujarat, Madhya Pradesh and Delhi as well as PSUs like BHEL, GAIL, ONGC and SAIL.

... contd.