VOI World/ Astha Pandey
India’s defence procurement deals, unlike its nature have now become the epicentre for the growing scrutiny. The Central Bureau of Investigation (CBI) has recently sought the extradition of US citizen Surya Sareen, CEO of AKON Inc, from the United States to India.
The move follows allegations that Sareen’s firm failed to deliver functional defence equipment under a contract with the Defence Avionics Research Establishment (DARE), a laboratory under India’s Defence Research and Development Organisation (DRDO).
The details around this dispute actually dates back to a contract involving the supply of 35 voltage-controlled oscillator-based RF generators, critical components for avionics testing. According to the CBI, AKON Inc. supplied equipment that was either defective or non-functional, with several units allegedly never delivered. The estimated value of the project was around ₹1.6 crore, and investigators say the irregularities point to deliberate cheating and breach of trust.
However, earlier this year, the Karnataka High Court had dismissed Sareen’s plea to quash the case, observing that prima facie offences under IPC Sections 420 (cheating) and 120B (criminal conspiracy) were made out. The court also noted that the evidence indicated a pattern of misrepresentation and non-performance under a government defence contract, a serious issue given India’s strategic sensitivities.
The extradition request marks a significant step, as India seeks Sareen’s return under its bilateral extradition treaty with the US. Legal experts note that such cases often hinge on whether the alleged actions meet the dual-criminality threshold meaning the offence must be considered criminal in both countries.
If successful, the extradition could set an important precedent for accountability among foreign defence contractors engaged in Indian government projects, especially with the important procurement deals.
It also sends a wider message that even cross-border entities dealing with India’s defence ecosystem will face legal consequences if found violating any contractual integrity or not in alignment with the national interest.
