Bribery allegations against Embraer
India bought three special aircraft from Embraer. In Picture: An Embraer R-99 aircraft fitted with Airborne Early Warning and Control (AEW&C) System developed by India at the Defence Research and Development Organization (DRDO) flies during the Bahrain International Air Show at Sakir airbase, south of Manama, January 2014.Reuters

Brazilian aerospace conglomerate Embraer paid $5.76 million in commission to an entity recognised as Agent D, the US Department of Justice said in a court filing on Monday.

"On or about July 3, 2008, Embraer executed a contract to provide three highly specialised military aircraft to the Indian Air Force for approximately $208 million," the filing said.

"In connection with the deal, Embraer retained the services of Agent D pursuant to 2005 agency agreement. It later paid $5.76 million to Agent D pursuant to a false agency agreement signed in or around 2008," it added.

Central Bureau of Investigation (CBI) is investigating the deal that Defence Research and Development Organisation (DRDO) signed with Embraer for three special aircraft.

According to the Hindustan Times, the US may have shared the details with the CBI. The report noted that Embraer had entered into an agreement with "Shell Company" that was based in UK and was affiliated with Agent D. The agreement terms were that the company had to pay commission of nine percent of the value of the Indian contract.

Embraer's deal came under scanner for bribery allegation following investigations that revealed that the company might have hired middlemen or agents in the UK to swing the deal in its favour in India and Saudi Arabia.

India's defence policy does not allow hiring of middlemen. The US document noted that Embraer was aware of Indian rules on paying commissions.

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