The Central Bureau of Investigation on Saturday registered a preliminary enquiry, to investigate claims that a "middleman" helped Brazilian company Embraer secure a $208-million (Rs 1,395 crore approximately) contract with the Defence Research and Development Organisation (DRDO), PTI reported. Investigators said the probe was against certain defence officials, however their identities have yet to be known. India's defence procurement procedure prohibits the payment of commission or involvement of a middleman. Meanwhile, the DRDO has sought an explanation from the company.

The Defence Ministry had requested a CBI investigation on Wednesday. The investigating agency registers an enquiry of this nature when there is not enough evidence to prove the allegations. The agency then collects data to verify the claims, reported PTI. The preliminary enquiry does not, however, empower the CBI to record statements or conduct searches.

The allegations against Embraer surfaced in a Brazilian daily, Folha de Sao Paolo, which reported that the company had paid commissions to secure aircraft deals with Saudi Arabia and India. The deal was signed during the first term of the United Progressive Alliance rule in 2008, and involved the purchase of three aircraft. The DRDO had modified the aircraft to be used as air-borne radar system for the Indian Air Force.

According to the Brazilian newspaper, the United States Justice Department was looking into the contract the company inked with India, besides other Embraer deals. The daily said Embraer has agreed to cooperate with the US probe and was likely to reach an agreement with the American officials.

This is the second major defence agreement under the UPA government to come under scrutiny. The AgustaWestland helicopter pact turned into a huge financial and political controversy after allegations arose that executives had paid off Congress government officials to secure the deal for 12 VVIP helicopters.