RNEL seeks CBI, CVC probe into complaint against L&T Defence on warship project
New Delhi, June 15: Reliance Naval & Engineering Ltd. (RNEL) has sought a probe by the CBI and the CVC into a complaint it has lodged with the Defence Ministry alleging that a senior Indian Navy officer is favouring its business rival, Larsen & Toubro, in big-ticket defence deals.
Sources told that, in its complaint, RNEL has alleged that the naval officer, whose son is employed with the L&T Defence at its Pune unit, passed on sensitive information to L&T pertaining to the prestigious Rs 20,000 crore (almost $3 billion) project to construct four warships for the Indian Navy.
While the Defence Ministry has reportedly initiated an internal inquiry on the complaint, RNEL has now sought a probe by the Central Bureau of Investigation and the Central Vigilance Commission into the matter, the sources said.
RNEL's complaint reportedly mentions Vice Admiral D. Deshpande who, it has alleged, is acting virtually as "an agent" of L&T and is passing on vital information pertaining to the sensitive defence projects to the company.
The complaint also alleged that the Vice Admiral's son was going to pursue an MBA degree that would be paid for and "sponsored by L&T".
According to a media report, Deshpande has clarified his position in the matter to the Defence Ministry top brass, details of which are not available.
In Mumbai, L&T's Whole Time Director J.D. Patil rejected the contentions made in the RNEL complaint and said that it was for the Defence Ministry to respond to such allegations.
On the employment of Vice Admiral Deshpande's son in L&T Defence, he said around 80 percent staff comprise retired defence personnel for the technical expertise they possess.
"Our recruitment processes are very stringent and based purely on merits, not any other consideration, and our organisational ethos don't permit such things," Patil told here.
While the matter is under a probe, the warships project is in a limbo since 2017 when RNEL and L&T Defence were shortlisted by the Defence Ministry for award of the contract.
To be awarded under the "Make In India" initiative of Prime Minister Narendra Modi, it would be the biggest warship project incorporating Landing Platform Docks for transporting troops, equipments, tanks and fighter choppers across the seas.
While the RNEL has joined hands with the France's Naval Group, L&T Defence has roped in Spain's Navantia Group for the mega-project, with the foreign partners contributing by way of design and technology for the ships to be constructed in an Indian shipbuilding yard.
Incidentally, RNEL has contended that there is a move to split the project into two by awarding a couple of ships to L&T Defence, which it contends would be "detrimental to the interest of the country" and Indian Navy.
Until clarity emerges on the charges by RNEL against L&T Defence, the next crucial step in the procurement process -- opening the commercial bids to determine the final winner from among the two contenders -- will hang fire indefinitely, and entail further delays to the time-bound project, the sources said.
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Hormuz Strait disruptions have caused huge economic impact, energy instability in region: Navy chief
Mumbai (PTI): The Strait of Hormuz disruptions have caused severe economic impact and energy instability in the region, Indian Navy chief Admiral D K Tripathi said on Thursday amid the war in West Asia.
Speaking at an event where INS Sunayna, an offshore patrol vessel, set sail from Mumbai as Indian Ocean Ship (IOS) Sagar, the admiral said competition at sea has no longer remained confined to oil and energy.
It is now expanding towards resources that will shape future growth - such as rare earth elements, critical minerals, new fishing grounds and even data, he said.
The West Asia crisis began on February 28 after a joint attack by the US and Israel on Iran.
Iran's strikes on its neighbours along with its chokehold on the Strait of Hormuz have disrupted the world's energy supplies with effects far beyond West Asia.
"With the conflict in West Asia well into its fifth week, the disruptions in the Strait of Hormuz have caused severe economic impact and energy instability in the region," Tripathi said.
There is significant increase in the marine survey, deep-sea research activity, and Illegal Unreported and Unregulated Fishing (IUU), often encroaching upon the sovereign rights of littoral nations and exploiting gaps in monitoring and enforcement, he said.
Alongside these, threats such as piracy, armed robbery and narco-trafficking backed by unimpeded access of advanced technology to non-state actors, have also become more complex and challenging to counter, the Navy chief pointed out.
Last year alone, the Indian Ocean Region witnessed a staggering 3,700 maritime incidents of varying nature, the admiral said.
Additionally, narcotics seizures in the region exceeded USD 1 billion USD in 2025, highlighting the persistence and spread of such challenges in the region, he said.
