Karnataka High Court Reserves Verdict on Dismissal of CBI Case Against Indian-American CEO

The Karnataka High Court has reserved its judgment regarding the petition of Surya Sareen, CEO of Akon Inc, an Indian-origin American businessman, who is seeking to dismiss a CBI case alleging irregularities in defense supplies to India’s DRDO in 2009. Sareen, who is currently facing extradition efforts and a Red Corner Notice, has been accused of delivering faulty radio frequency (RF) generators through his company, which secured a contract exceeding one million USD to supply these components to the Defence Avionics Research Establishment (DARE), a unit of DRDO.

The controversy dates back over a decade, when Akon Inc was tasked with providing 35 voltage-controlled oscillator-based RF generators crucial for advanced radar systems. Faults in these supplies reportedly resulted in significant delays in the deployment of radar systems along India’s borders, prompting a CBI investigation that culminated in a chargesheet filed in 2023.

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During the court proceedings, Sareen’s defense emphasized his advanced age of 79 and existing health concerns, arguing that the case should be seen as a commercial dispute rather than a criminal matter. They also highlighted the considerable delay in the investigation, with the CBI only registering an FIR in 2020 following preliminary inquiries that began much earlier.

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The CBI, on the other hand, defended the investigation’s timeline by asserting the necessity for a meticulous examination of the allegations, which included involvement by senior DRDO officials in procuring subpar equipment. The case also involves accusations against two former DARE officials, ex-director U.K. Revankar and senior scientist Priya Suresh, alongside Sareen and his company.

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