Defence Auditor Caught in Rs 10 Lakh Bribery Scandal for Clearing Rs 56 Crore Payment to Drone Firm

New Delhi: A senior auditor from the Principal Controller of Defence Accounts (PCDA), Ministry of Defence, has been caught in a bribery scandal involving a demand of Rs 10 lakh to clear a Rs 55.96 crore payment for a drone manufacturing firm. The Central Bureau of Investigation (CBI) arrested three individuals, including the auditor and the owner of a defence supplier firm, after a sting operation exposed the illicit deal.

The case came to light after Raphe mPhibr, a company that supplied Unmanned Aerial Vehicles (UAVs) to the Indian Army in 2023, reported that payments against their invoices were being deliberately stalled. The company’s senior vice president, Varun Narang, lodged an FIR on February 7, alleging that the auditor had sought a bribe in exchange for releasing the pending payments. Following authorisation from Vikash Mishra, Chairman and Director of the firm, Narang approached the CBI, leading to a covert operation.

Bribery Caught on Tape

CBI officials set up a trap and caught one of the accused red-handed while accepting an Rs 8 lakh installment of the bribe. The accused auditor, Deep Narayan Yadav, and defence supplier Akash Kapoor, the owner of Akash Polytechnic Pvt Ltd, were later arrested.

According to the CBI inquiry report, Narang engaged Yadav in a phone conversation, which was recorded. During the call, Yadav explicitly demanded Rs 10 lakh to process the company’s invoices. He agreed to accept Rs 8 lakh initially and instructed the complainant to arrange the remaining Rs 2 lakh at a later stage. Investigators confirmed that the bribe was not only to clear existing payments but also a precondition for processing future invoices.

Threats and Extortion

In his complaint, Narang revealed that Yadav had threatened to withhold future payments if the bribe was not paid. The pressure tactics prompted the company to escalate the matter to law enforcement. The CBI has now booked the accused under the Prevention of Corruption Act and is investigating whether similar extortion attempts were made with other defence suppliers.

Implications for Defence Procurement

This case raises concerns about corruption within the defence procurement system, where firms supplying critical equipment to the Indian Armed Forces are subjected to bribery demands. The incident has sparked discussions on the integrity of financial audits in defence payments, highlighting the urgent need for stricter oversight and accountability in government financial transactions.

What’s Next?

The accused are expected to be presented in court, where the CBI will push for further investigation into the larger network of corruption in the PCDA office. Defence authorities have assured that stringent action will be taken against those involved in bribery and extortion, ensuring that suppliers working with national security agencies are not subjected to unethical practices.

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