- The CBI has filed a corruption case against British aerospace and defence company Rolls Royce.
- The CBI has booked the top executive for alleged “kickbacks” in the procurement of Hawk 115 Advanced Jet Trainer aircraft for the Indian Air Force and Navy.
- It is alleged that during 2003-12, these accused entered into a conspiracy with unidentified public servants who “abused their official positions” in lieu of “huge bribes, commissions, and kickbacks” paid by Rolls Royce to approve the aircraft purchase.
- In 2012, media reports alleging corruption in the Rolls Royce operations surfaced, resulting in an investigation by the Serious Fraud Office, London.
- It said Sudhir Choudhrie and Bhanu Choudhrie, allegedly unregistered Indian agents and middlemen who worked for Rolls Royce and BAES in securing the award of contract for the supply of Hawk aircraft in question.
The CBI has filed a corruption case against British aerospace and defence company Rolls Royce. It Has booked the top executives of its Indian unit and arms dealers for alleged “kickbacks” in the procurement of Hawk 115 Advanced Jet Trainer aircraft for the Indian Air Force and Navy, officials said. The CBI has registered a case against Tim Jones, Director Rolls Royce India, alleged arms dealers Sudhir Choudhrie and his son Bhanu Choudhrie, Rolls Royce Plc, and British Aerospace after completing a six-year-old preliminary inquiry registered in December 2016.
It is alleged that during 2003-12, these accused entered into a conspiracy with unidentified public servants who “abused their official positions” in lieu of “huge bribes, commissions, and kickbacks” paid by Rolls Royce to approve the aircraft purchase. The company paid intermediaries, even though the agreements, integrity pacts, and associated documents of the deal “prohibited such payments”, the CBI FIR has alleged.
The Cabinet Committee on Security (CCS) had approved the procurement of 66 Hawk 115 AJTs on September 3, 2003, under which 24 BAE Hawk 115Y AJTs in flyaway condition with all the accouterment along with material for 42 aircraft to be manufactured by HAL were cleared for GBP 734.21 million, equivalent to Rs 5653.44 crore (calculated at Rs 77 per GBP), was sanctioned. Procurement of 42 aircraft, to be licensed manufactured by HAL at an additional cost of GBP 308.247 million, equivalent to Rs 1944 crore, and a payment of GBP 7.5 million to Rolls Royce as a Manufacturer’s license fee was also cleared. Subsequent contracts signed with Rolls Royce/BAE had an integrity clause that barred the engagement of any middlemen or payment of a commission. In case of violation, the company could have been debarred for any Government of India work for the next five years besides penalty.
HAL delivered 42 aircraft to the Indian Air Force between August 2008 and May 2012. In January 2008, HAL requested the Defence Ministry approval for the licensed manufacturing of 57 additional Hawk Aircraft, of which 40 were for the Air Force and 17 for the Navy, for Rs 9502 crore.
In 2012, media reports alleging corruption in the Rolls Royce operations surfaced, resulting in an investigation by the Serious Fraud Office, London. The company prepared a Statement of Fact that disclosed its corrupt payments concerning transactions with countries like Indonesia, Malaysia, and India. A deferred prosecution agreement was reached between the company and SFO.
It is alleged that Rolls Royce Plc was involved in bribing tax officials and other officials to prevent an investigation by Indian authorities into its tax affairs and use of intermediaries in the deal, the FIR alleged. The Crown Court Judgment specifically mentions payment of GBP one million by Rolls Royce to an intermediary for increasing the license fee from GBP 4 million to 7.5 million, it alleged.
The CBI also alleged that GBP 100 million were paid by Russian Arms companies into a Swiss account in the name of Portsmouth, a company associated with Sudhir Choudhrie for defense deals with Russia for the purchase of MIG aircraft.
It said Sudhir Choudhrie and Bhanu Choudhrie, allegedly unregistered Indian agents and middlemen who worked for Rolls Royce and BAES in securing the award of contract for the supply of Hawk aircraft in question, used “undue influence on Indian public servants to induce the Government of India to approve the deal,” it alleged.
(With inputs from agencies)
