The Jeep scandal of 1948 was the first major corruption case in the

Republic of India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

V.K. Krishna Menon Vengalil Krishnan Krishna Menon (3 May 1896 – 6 October 1974) was an Indian academic, politician, and non-career diplomat. He was described by some as the second most powerful man in India, after the first Prime Minister of India, Jawa ...

, the Indian High Commissioner to the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

, ignored protocols and signed a Rs 80 lakh contract for the purchase of army jeeps with a foreign firm.

Purchase

With the

Indo-Pakistani War of 1947–1948 The Indo-Pakistani War of 1947–1948, or the First Kashmir War, was a war fought between India and Pakistan over the princely state of Jammu and Kashmir from 1947 to 1948. It was the first of four Indo-Pakistani wars that was fought between t ...

ongoing, the

Indian Army The Indian Army is the land-based branch and the largest component of the Indian Armed Forces. The President of India is the Supreme Commander of the Indian Army, and its professional head is the Chief of Army Staff (COAS), who is a four- ...

required more jeeps against the

Pakistani Army The Pakistan Army (, ) is the land service branch of the Pakistan Armed Forces. The roots of its modern existence trace back to the British Indian Army that ceased to exist following the Partition of British India, which occurred as a result ...

V. K. Krishna Menon Vengalil Krishnan Krishna Menon (3 May 1896 – 6 October 1974) was an Indian academic, politician, and non-career diplomat. He was described by some as the second most powerful man in India, after the first Prime Minister of India, Jawa ...

, the Indian High Commissioner to Britain, placed an order for 2,000 refurbished Jeeps for the same price of new Jeeps that could be purchased from the

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. He argued that they would be delivered immediately with spare parts. The company assigned to deliver the Jeeps, the little-known Anti-Mistantes, had a capital of only £605. Krishna Menon agreed to pay $172,000, with 65% of the total payment upfront without any inspection certificate. He also agreed that only 10% of the Jeeps would be inspected. The earlier contract stipulated that 65% of the payment would be made upon inspection, 20% on delivery and the rest a month after delivery. Of the 155 Jeeps that arrived, none could be placed into service. The

Defence Ministry {{unsourced, date=February 2021 A ministry of defence or defense (see American and British English spelling differences#-ce.2C -se, spelling differences), also known as a department of defence or defense, is an often-used name for the part of a g ...

refused to accept them, and Anti-Mistantes suspended delivery of the Jeeps. Menon, unable to contact it, entered an agreement with S.C.K. Agencies for 1,007 jeeps, with 68 being delivered monthly and the Indian government to be compensated for its loss from the older contract. Each jeep cost £458.10 while Anti-Mistantes sold a jeep for £300. Menon agreed to change the contract to stipulate that 12 jeeps would be delivered monthly for six months and then 120 jeeps would be delivered monthly. The company, however, supplied only 49 jeeps in two years and refused to compensate the government. The payment of the jeeps by

Britain Britain most often refers to: * The United Kingdom, a sovereign state in Europe comprising the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands * Great Britain, the largest island in the United King ...

was part of the British war debt to India dating back to the

Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

Corruption allegations

Menon bypassed protocol to sign a deal worth Rs. 80 lakh to the foreign firm for the purchase of the jeeps.

Govind Ballabh Pant Govind Ballabh Pant (10 September 1887 – 7 March 1961) was an Indian freedom fighter and the first chief minister of Uttar Pradesh. Alongside Mahatma Gandhi, Jawaharlal Nehru and Vallabh Bhai Patel, Pant was a key figure in the movement fo ...

, the

Home Minister The Minister of Home Affairs (or simply, the Home Minister, short-form HM) is the head of the Ministry of Home Affairs of the Government of India. One of the senior-most officers in the Union Cabinet, the chief responsibility of the Home Minist ...

and the Indian government announced on 30 September 1955 that the Jeep scandal case had been closed for judicial inquiry and ignored the suggestion by the Inquiry Committee, led by Ananthsayanam Ayyangar. He declared that "as far as Government was concerned it has made up its mind to close the matter. If the opposition was not satisfied they can make it an election issue". Soon afterward, on 3 February 1956, Menon was inducted into the Nehru cabinet as minister without portfolio. Later, Menon became Prime Minister Jawaharlal Nehru's trusted ally as defence minister. However, there was no evidence to doubt Mr Menon's personal integrity.

Mahatma Gandhi Mohandas Karamchand Gandhi (; ; 2 October 1869 – 30 January 1948), popularly known as Mahatma Gandhi, was an Indian lawyer, anti-colonial nationalist Quote: "... marks Gandhi as a hybrid cosmopolitan figure who transformed ... anti- ...

's personal secretary, U V Kalyanam, in a newspaper interview, said, "It is pertinent to mention here that Nehru made corrupt colleagues like Krishna Menon, who was involved in the infamous 'jeep scam' while he was the Defence Minister".

References

{{Corruption in India Corruption in defence procurement in India 1948 in India Political corruption in India Nehru administration