New Delhi: The CBI has arrested the executive director of state-run Munitions India Limited (MIL) and the CEO of ammunition manufacturer SMPP Limited in a case involving alleged bribes for official favours and the disclosure of sensitive defence information linked to a Rs 500-crore ammunition supply contract, officials said on Wednesday.

The agency alleged that MIL executive director Anil Kumar accepted illegal gratification from private contractors and vendors in exchange for extending official favours and sharing sensitive information related to defence production, procurement and other strategically important activities of the state-owned company.

According to the CBI, the alleged disclosure of such information could compromise India's strategic and security interests and undermine the integrity of defence procurement processes.

SMPP CEO and promoter-director Ashish Kansal was allegedly in regular contact with Kumar over a one-year period in connection with a Rs 500-crore contract awarded to SMPP for supplying ammunition to MIL, the agency said.

The CBI alleged that Kumar and certain private contractors and vendors were involved in a conspiracy to exchange bribes for official favours. Ravit Kumar Tewatia, an SMPP employee, was also allegedly in contact with Kumar in connection with the arrangement.

Kumar's brother, B Harshavardhan, has also been arrested in the case. The agency alleged that Kumar routed and concealed a substantial portion of the alleged illicit proceeds through his wife and brother. Both were named in the FIR for allegedly helping conceal and retain the money.

The CBI registered the case on Monday. During searches at Kumar's premises in Pune, the agency recovered Rs 1.73 crore in cash. Searches at premises in Mysuru, Bengaluru and Delhi led to the recovery of around Rs 50 lakh in cash and documents allegedly linked to the case, the CBI spokesperson said.

The agency is investigating the alleged exchange of illegal gratification, the disclosure of sensitive defence-related information and the suspected concealment of proceeds through family members.

No immediate reaction was available from SMPP on the developments.

PTI