CBI arrests Munitions India executive, SMPP CEO in ₹500 crore ammunition contract probe

New Delhi: The Central Bureau of Investigation (CBI) has arrested a senior executive of state-owned Munitions India Limited (MIL), the chief executive of private defence manufacturer SMPP Limited and a third person in a bribery investigation linked to a ₹500 crore ammunition supply contract. The agency is also investigating allegations that sensitive information about defence production and procurement was disclosed in exchange for payments.

Those arrested are MIL’s executive director, Anil Kumar; SMPP’s chief executive and director-promoter, Ashish Kansal; and Kumar’s brother, B Harshavardhan. According to the CBI statement cited by the Indian Express, the arrests took place on Tuesday, a day after the agency registered the case.

Searches at Kumar’s premises in Pune yielded ₹1.73 crore in cash, the agency said. Further searches at premises linked to the accused in Mysuru, Bengaluru and Delhi produced another ₹50 lakh and documents described by investigators as incriminating, bringing the total cash recovery to ₹2.23 crore.

The investigation centres on allegations that Kumar used his position at the Pune-headquartered defence public sector undertaking to provide preferential treatment to private contractors and vendors. The first information report (FIR) alleges that the arrangement involved both the acceptance of bribes and unauthorized disclosure of information concerning MIL’s strategically important activities.

According to the FIR details, Kansal maintained regular contact with Kumar over a contract awarded to SMPP to supply ammunition to MIL over one year. The ₹500 crore figure refers to the value of that supply contract; the reporting does not identify it as the amount allegedly paid in bribes.

The FIR also names an SMPP employee, Ravit Kumar Tewatia, as having been in contact with Kumar as part of the alleged conspiracy. Investigators further allege that Kumar channelled substantial portions of the suspected proceeds through his wife, brother and other relatives to conceal the money.

The agency’s information indicated that Kumar was expected to receive a substantial payment from Kansal on October 12, 2026, according to the same report. Kumar allegedly instructed his brother to travel to Pune the following morning to collect and conceal the proceeds.

The alleged disclosure of defence-related information gives the investigation a security dimension alongside the corruption allegations. In its FIR, the CBI warned that unauthorized access to such material could damage strategic interests and compromise the integrity of defence procurement, although the cited reports do not specify precisely what information was allegedly passed on.

MIL occupies an important position in India’s ammunition supply network, manufacturing products for the Indian Army, Indian Navy, Indian Air Force and other security forces. Its official vendor portal lists 12 manufacturing units and a product range covering small-, medium- and high-calibre ammunition, mortars, rockets and hand grenades, supported by in-house production of propellants and high explosives.

The company emerged from the restructuring of the Ordnance Factory Board into seven defence public sector undertakings, with responsibility for ammunition and explosives. The defence ministry said the reorganization was intended to improve functional autonomy and efficiency and encourage growth and innovation across the former ordnance factories.

The allegations remain under investigation and have not been established in court. PTI reported that no immediate response was available from SMPP, while the CBI said its investigation was continuing.