Harinder8217;s hosts in Russia worked for firm on MoD blacklist

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 Singh8217;s appointment that Admiral Bhagwat refused to implement following which he was sacked.

Vice Admiral Harinder Singh8217;s stay with representatives of these two companies figured in his Annual Confidential Report ACR 8212; 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. 8220;I have nothing to do with these companies,8221; he said. 8220;And since I am posted here in Port Blair, I have no connection with any procurement or supplies for the Navy.8221;

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 Bhagwat8217;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 companies8217; 8220;influence.8221;

Fernandes told The Indian Express that he had no 8220;recollection of such a meeting.8221; As for the Defence Ministry8217;s blacklisting Makalu, he said: 8220;I have to check the files.8221;

Among the facts on Makalu that surfaced as a result of the official investigation:

Makalu8217;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: 8220;Officers may also be directed to remain vigilant about the activities of Makalu8230;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.8221;

When contacted by The Indian Express, representatives of both the firms, said they 8220;hardly8221; had any dealings with the Navy. And, therefore, the issue of their representatives hosting Vice Admiral Harinder Singh in Russia was 8220;frivolous.8221; Crown president Admiral Nanda said that it was his son, former acting Lt.Commodore Suresh Nanda, who operated Crown8217;s London office and had 8220;probably8221; employed Harinder Singh8217;s host Commodore V K Chaudhury in Moscow. 8220;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?8221;

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 Makalu8217;s Commodore Sachdeva were Navy friends and batchmates.

The Sachdeva family claims to be unaware of the controversy surrounding the company. According to Sachedva8217;s wife, Ishpinder, while at one point Makalu company was handling 8220;substantial8221; import and export orders 8220;of nuts, bolts and bearings, not arms8221; for the Navy, the business had all but closed down now. Son Gundeep, sitting in Makalu8217;s plush office in Safdarjung Enclave, told The Indian Express: 8220;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.8221;