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In March 2006, Indian newspapers carried reports that a French defence firm, Aramis, had allegedly paid bribes using agents to win a contract to sell six Scorpene submarines to the Indian Government.

The anti-corruption watchdog, the Centre for Public Interest Litigation (CPIL), alleged that the 2.4 billion-euro Scorpene submarine contract involved payments to agents. Since the Bofors scandal, the use of agents is banned in defence contracts in India.

In April 2006, the Delhi High Court Chief Judge, Vijender Jain, gave the Central Bureau of Investigations (CBI) three weeks to answer the charges.

Earlier, in March 2006, India's defence minister month had denied bribery allegations in response to allegations made by the right-wing opposition party.

The French company Aramis is 50% owned by the French state shipbuilder, Direction des Constructions Navales (DCN), and defence and engineering giant Thales.

In September 2005, a former Thales executive accused the firm of organising a centralised slush fund to bribe and corrupt officials to win contracts. Thales denied the story stressing the executive had been sacked for his involvement in 'irregularities'.

In 2005, India cancelled all its contracts with the South African defence company, Denel, following allegations that it used agents to secure a defence contract in violation of the ban.