In relation to anomalies in software acquisition, the CBI files charges against IBM, SAP, and the previous CMD of Air India

In relation to anomalies in software acquisition, the CBI files charges against IBM, SAP, and the previous CMD of Air India

According to the panel, Air India chose software from the biggest ERP vendor in the world without providing evidence of its need since Oracle already had a system that was comparable in use.

It was mentioned that the Oracle system had certain issues, but neither their fixes nor an upgrade was attempted.

In relation to suspected irregularities in the national carrier's 2011 software acquisition of Rs 225 crore, the CBI reportedly filed a charge sheet against the then-CMDs of Air India, SAP India, and IBM, according to authorities on Sunday.

People inside the investigative agency who are aware of the issue say that the Central Vigilance Commission (CVC), which first discovered procedural flaws in the software procurement process, recommended that the CBI initiate the case. Following almost six years of inquiry, the CBI has charged former Air India CMD Arvind Jadhav, IBM India Pvt Ltd, SAP India Pvt Ltd, and six more under the IPC's sections 120-B (criminal conspiracy) and provisions of prevention of a complaint under the Corruption Act, he said.

In a memo to the CBI, the CVC said that early findings from Air India's Chief Vigilance Officer showed that the national carrier had chosen SAP AG's Enterprise Resource Planning (ERP) software system without adhering to the correct tender procedure. Air India said that it had presented before the Group of Secretaries on July 9, 2009, and the Group of Ministers in 2010. It was also stated that no approval was obtained from the Ministry of Civil Aviation.

According to the panel, Air India chose software from the biggest ERP vendor in the world without providing evidence of its need since Oracle already had a system that was comparable in use. It was mentioned that the Oracle system had certain issues, but neither their fixes nor an upgrade was attempted. Additionally, the CVC said in the letter that the open tender mechanism was not used to acquire new ERP software. Rather, SAP and IBM were given the contract based on nominations.