The Defence Ministry has sought for a CBI investigation in the deal for Embraer aircraft after reports of alleged kickbacks having been paid.
In 2008, Embraer sold three EMB 145 AEW&C aircraft to the Indian government. The deal was worth $208 million.
Last Sunday, Defence Minister Manohar Parrikar pointed out that pact maybe handed over to CBI for investigation.
"I am not going to give a knee-jerk reaction and just make a statement based on rumours. I have asked for a report, which will be submitted on Monday, and if the issues are of a criminal nature, then we can forward this case to the CBI for a criminal investigation. If there are just procedural issues, then we can do an internal investigation," Parrikar had said.
Earlier, DRDO wanted an explanation from Brazilian aerospace conglomerate Embraer over alleged kickback payment in a deal for aircrafts entered into during the UPA government, Defence Ministry said.
The issue came to light after a report in a newspaper in Brazil said that investigations have been opened by the government of the US to establish whether Embraer paid bribes in order to obtain contracts overseas.