The CBI registered the case after a preliminary enquiry, launched in 2016, found that Choudhrie and others had entered into a criminal conspiracy with public servants who allegedly abused their official positions to increase the number of Hawk aircraft to be procured from British Aerospace Systems and get the manufacturer licence fee raised from 4 million pounds to 7.5 million pounds by paying huge kickbacks to intermediaries between 2008 and 2010.
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Dhruva Command successfully carries out maiden airdrops of warfighting loads by IAF’s AN 32 aircraft
The FIR also claimed 100 million pounds were paid by Russian arms companies into a Swiss bank account (No. 120467) in the name of Portsmouth, a firm associated with Choudhrie for defence deals with Russia for purchase of MIG fighter aircraft.
The CBI registered the case on the basis of the findings following a preliminary enquiry launched in 2016.
‘Graft could’ve come to light between 2006-2007 but accused got files destroyed’
The preliminary enquiry found that Choudhrie and others had entered into a criminal conspiracy with public servants who allegedly abused their official positions to increase the number of Hawk aircraft to be procured from British Aerospace Systems and get the manufacturer licence fee raised from 4 million pounds to 7.5 million pounds by paying huge kickbacks to intermediaries. This, the CBI said, happened despite the fact that the agreement included an integrity pact which prohibited payments to intermediaries and middlemen.
The FIR also levelled the sensational charge that corruption in procurement of aircraft would have come to light in 2006-2007 when the income tax department chanced upon crucial documents pointing to fraud in the deal during a survey on Rolls Royce India Pvt Ltd but the accused managed to get the documents destroyed.
The CBI’s preliminary enquiry found that in a meeting on September 3, 2003, the Cabinet Committee on Security had approved procurement of 66 Hawk-115 aircraft and signing of an inter-government agreement between the governments of India and the UK for long-term product support.
An MoU was signed between the Indian and UK governments on March 19, 2004, for long-term product support.
“Shortly thereafter, two related contracts, both dated 26.03.2004, for supply of 24 Hawk aircraft by way of direct supply and materials and transfer of technology for 42 aircraft to be licence manufactured by HAL were signed between the ministry of defence and BAE Systems/Rolls Royce,” the FIR said.
In 2008-10, when the UPA was in office, the accused persons also secured approval for licence manufacturing of 57 additional Hawk aircraft by HAL for Rs 9,502.7 crore under a separate agreement with BAE Systems Ltd. The 57 additional Hawk aircraft were manufactured by HAL under the licence manufacturing route and delivered to the IAF between March 2013 and July 2016.
Allegations of scam during the UPA tenure of 2004-2014 significantly contributed to Congress’s defeat and continue to provide fodder to BJP’s effective campaign. The CBI FIR will give the ruling party more ammunition against the largest opposition party.
The preliminary enquiry quoted a Statement of Fact (SoF) prepared by Rolls Royce, wherein it disclosed its corrupt payments in connection with transactions with countries like Indonesia, Thailand, China, Malaysia and India.
A Crown Court judgment of 2017 revealed concealment of involvement of intermediaries in the defence business in India between 2005 and 2009 by Rolls Royce despite restrictions imposed by the Indian government for payment of commissions/fees to intermediaries.
It mentioned payment of 1 million pounds by Rolls Royce to an intermediary for increase of licence fee of Rolls Royce from 4 million pounds to 7.5 million pounds. The SoF also disclosed corrupt payments to public servants in India between 2006 and 2007. It was mentioned that a list of intermediaries was impounded by the I-T department in India in 2006.