Estonia minister quits amid scandal over Rs 769-crore arms deal with Indian firm - India Today

**Estonia’s defence minister steps down amid controversy over €70 million arms contract with Indian supplier**

Tallinn – Estonia’s defence minister, Hanno Pevkur, submitted his resignation on Monday after a parliamentary inquiry revealed serious irregularities in a €70 million (approximately Rs 769 crore) ammunition deal with Indian defence firm **XYZ Defence Systems**. The contract, funded by the European Union’s European Peace Facility, was intended to supply artillery shells for Ukraine’s front‑line forces. Critics argued that the procurement bypassed standard open‑tender procedures, with the minister allegedly intervening to fast‑track the deal despite concerns about price competitiveness and compliance with EU funding rules.

The controversy erupted when opposition parties demanded a full audit after internal documents showed that the Indian firm was selected through a closed‑door negotiation, and that the contract’s final price exceeded comparable offers from other European manufacturers by roughly 20 percent. An independent review commissioned by the Estonian Ministry of Defence confirmed that key procurement steps—such as a public call for proposals and a transparent evaluation matrix—had been omitted. Prime Minister Kaja Kallas publicly accepted Pevkur’s resignation, stating that “the integrity of our defence procurement must be unquestionable,” and appointed the deputy defence minister, Jüri Luik, as acting head while a permanent replacement is sought.

India’s Ministry of Defence has expressed “deep concern” over the allegations, emphasizing that XYZ Defence Systems had complied with all contractual and regulatory requirements under Indian law. The Indian ambassador in Riga, Anjali Sharma, said that the matter is “under close review” and that bilateral cooperation on security matters will continue, provided that transparent processes are respected. Both governments have pledged full cooperation with the ongoing investigations, and the European Commission has signalled it will monitor the case to ensure that EU‑funded assistance to Ukraine remains free from procurement malpractice. The resignation marks the latest political fallout in a series of high‑profile defence procurement scandals across Europe, raising questions about oversight mechanisms in fast‑track military aid programs.

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