Bofors scandal-f

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Bofors scandalBofors scandal

y Introduction of Bofors scandal

The Bofors scandal was a major corruption scandal in India in the 1980s;

The Prime Minister Rajiv Gandhi and several others were accused of receivingkickbacks from Bofors AB (Bofors Aktiebolaget )

for winning a bid to

supply India's 155 mm field howitzer.

The scale of the corruption was far worse than

any that India had seen before.

The case came to light during Vishwanath PratapSingh's tenure as defence minister, and was revealed

through investigative journalism by Chitra Subramaniam

and N. Ram of the newspapers the Indian Express and

The Hindu


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y This is a corruption based scandal amounting to Rs. 640 million

y

The name of the middleman associated with the scandal was OttavioQuattrocchi,

y An Italian businessman who represented the petrochemicals

firm Snamprogetti.

Quattrocchi was close to the family of

Prime Minister Rajiv Gandhi and emergedas a powerful broker in the '80s between

big business and the Indian government.


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Key players in Bofors ScandalKey players in Bofors Scandaly Mr. Rajiv Gandhi: the then Prime Minister of India, he was accused of receiving

kickbacks from bofors AB. He was Posthumously cleared from this allegation in 2004.

y Mr. S. K. bhatnagar: Former defense Secretary he accused of abusing his official

authority.

y Mr. Qttavio Quattraocchi: the alleged middel man, Quattrocchi is the long surviving

suspect in the muli-crore bofors scandal.

y Mr. Win Chadha: Arms agent. He was accused of receiving a part of the 640 millions

kickback in march 1986 by the Rajiv Gandhi Government.

y Mr.Martin Ardbo: former Bofors Chief , Ardbo was chargesheeted, ae was the

company.

y The Hinduja: Proprietor of the UK-based industrial group, the Hinduja brothers were

also investigated for their role in the Bofors Scandal.


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chronologyofevents in thechronologyofevents in theBoforsBofors howitzer payoffhowitzer payoff

scandal:scandal:y March 24, 1986: A $15 billion contract between the Indian government and

Swedish arms company AB Bofors is signed for supply of over 400 155mmHowitzer field guns.

y April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top Indianpoliticians and key defence officials to secure the deal.

y April 20, 1987: Then prime minister Rajiv Gandhi assures the Lok Sabha that nomiddleman was involved and no kickbacks were paid.

y November 1989: Congress defeated in Lok Sabha election.

yJan 22, 1990: Central Bureau of Investigation (CBI) registers complaint in the case.

y Jan 26, 1990: Swiss authorities freeze bank accounts of Svenska and AE Services,which allegedly received unauthorised commissions for the deal.

y July 12, 1993: Swiss federal court rules that India was entitled to Swiss bank

documents pertaining to kickbacks.


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y July 29/30, 1993: Italian businessman Ottavio Quattrocchi, who represented Italianfertiliser firm Snam Progetti for years, leaves India to avoid arrest.

yJan 30, 1997: CBI sets up special investigation team for the case.

y Oct 22, 1999: CBI files first chargesheet naming Win Chadha, Quattrocchi, formerIndian defence secretary S.K. Bhatnagar, former Bofors chief Martin Ardbo andBofors company. Rajiv Gandhi's name figures as "an accused not sent for trial" -- ashe was assassinated in 1991.

y Early 2000: Quattrocchi approaches Supreme Court to quash arrest warrant againsthim. The court asks him to appear before the CBI for interrogation while protectinghim from being arrested. Quattrocchi refuses to accept the order.

y Dec 2, 2002: Malaysian court denies India's request for Quattrocchi's extradition.

y July 28, 2003: Britain freezes Quattrocchi's bank accounts.

y Feb 4, 2004: Delhi High Court clears Rajiv Gandhi of involvement in scandal.

y May 31, 2005:Delhi High Court clears Hindujas of involvement.


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y Feb 13, 2007: CBI writes to ministry of external affairs for Argentinean Extradition

Act and tells Interpol that documentation are being prepared for extradition

proceedings.

y Feb 24, 2007: Fresh arrest warrant against Quattrocchi obtained from Delhi court.

y Feb 26, 2007: Quattrochhi released on bail with condition that he does not leave

Argentina.

y March 1, 2007: Argentinean judge examines CBI application seeking Quattrocchi's

extradition.

y October 2008: Attorney General Milon Banerjee opines that CBI can withdraw Red

Corner Notice against Quattrocchi.

y Sep 8, 2009: CBI seeks two weeks time from trial court to explore options against

Quattrocchi.

y

Sep 29, 2009: Government tells Supreme Court about decision to withdraw caseagainst Quattrocchi.


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y Dec 14, 2010: ADelhi court reserves order till Jan 4, 2011 on a plea of

CBI seeking to drop criminal proceedings against Quattrocchi.

y Jan 3, 2011: An Income Tax tribunal rules that commission in violation

of Indian laws was indeed paid to Quattrochi and Chadha in the gun

deal that cost the national exchequer Rs.412.4 million some 23 years

ago.


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Unethical issuesUnethical issues

Taking Taking or giving bribe

The Prime Minister Rajiv Gandhi and several others were accused of receiving

kickbacks from Bofors

AB (Bofors Aktiebolaget ) for winning a bid to supply India's 155 mm field howitzer.

Using political Power:

The HC Ruled that the prosecution has failed to prove that the hinduja Brothers

Gopichand, Prakashchandan & Srichand were linked to the Kickbacks in the Bofors Deal,

which led to the ouster of late Indian Prime Minister Rajiv Gandhi from Power.The court

Later gave Rajiv Gandhi a clean cit.


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y Covering up incidents

No case can Proceeded against the Hinduja or the Bofors Company in the absence of original

documents.

Taking Advantage ofOfficial Position

Former defense Secretary he has taking advantage of his position. He was accused of abusing

his official authority as the then Defence Secretary to tilt the scales in favour of the Swedish

firm for the Rs. 1437-crore contract to supply 155 mm howitzer guns to the Indian Army.

Wasting PublicMoney & time

1 june 2005: A Protracted legal wrangle that went on and on for eighteen long years has

ended up as a cipher, as the delhi high court acquitted three hinduja Brothers in the

sensational Bofore Case. The case related to the alleged kickbacks in a 1986 arms deal. The

deal was worth 1437.72 crore that time.the kickbacks were sighted to be the turn of Rs. 64

crore, but the probe cost Rs. 250 Crore. In a time of 18 years.

Bofors scandal-f

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