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The Central Bureau of Investigation (CBI) has arrested three individuals, including Munitions India Ltd (MIL) Executive Director Anil Kumar and SMPP Ltd CEO and Director-Promoter Ashish Kansal, in connection with an alleged bribery case linked to a ₹500 crore ammunition supply contract.

Reports indicate that the investigation centres on allegations of corruption, official favours and the unlawful sharing of sensitive defence-related information.

The CBI has also named private defence manufacturer SMPP Ltd in the case, alleging that illegal payments were made to secure business advantages and gain access to classified information connected with defence production and procurement activities.

According to the agency, the case was registered on 12 October after information was received alleging that Anil Kumar, while serving as Executive Director at MIL in Pune, demanded and accepted illegal gratification from contractors and vendors in exchange for official favours and access to sensitive information.

Investigators have reportedly questioned senior MIL officials and members of SMPP's top management during the course of the probe into alleged irregularities associated with ammunition supplies.

The FIR alleges that Ashish Kansal maintained regular contact with Kumar regarding a one-year ammunition supply contract worth ₹500 crore that had been awarded to SMPP by MIL.

The investigation also names SMPP employee Ravit Kumar Tewatia, who is alleged to have been in contact with Kumar as part of the suspected conspiracy. The agency further alleges that Kumar was expected to receive a substantial bribe from Kansal on 12 October.

According to the FIR, Kumar allegedly instructed his brother, B Harshvardhan, to travel to Pune to collect the purported proceeds of corruption for safekeeping and concealment. Harshvardhan has also been arrested in the case.

The CBI has further alleged that illicit proceeds were routed or parked through Kumar's wife, brother and other relatives in an effort to conceal the funds.

SMPP Ltd has been named through its representative, alongside unidentified public servants and private individuals who are also under scrutiny as part of the wider investigation.

During searches conducted at Kumar's residence in Pune, investigators recovered cash amounting to ₹1.73 crore. Additional searches at locations connected with the accused in Mysuru, Bangalore and Delhi resulted in the recovery of approximately ₹50 lakh in cash along with documents considered relevant to the investigation.

The total cash seized so far stands at around ₹2.23 crore, making it one of the most significant recent anti-corruption actions involving India's defence manufacturing ecosystem.

The CBI has alleged that the unauthorised disclosure of sensitive information relating to defence production and procurement had the potential to compromise strategic interests, undermine the integrity of defence acquisition processes and create wider national security concerns.

The case is particularly significant because MIL is one of the key defence public sector entities created following the restructuring of the former Ordnance Factory Board, while SMPP operates in ammunition manufacturing and defence technologies, including unmanned systems.

With multiple arrests already made and substantial cash recoveries recorded, investigators are expected to examine financial trails, communications records and procurement-related interactions to determine the full extent of the alleged conspiracy.

The probe remains ongoing, with the agency continuing to investigate the role of additional individuals, possible beneficiaries and any further links between public officials and private sector entities involved in defence procurement activities.

Agencies