BOFORS SCAM Presented By :- AmitJha MBA II Year Department Of Management Studies Pondicherry University
Introduction of Bofors scandal The Bofors scandal was a major corruption scandal in India in the 1980s. Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer. It has been speculated that the scale of the scandal was to the tune of Rs. 400 million The scale of the corruption was far worse than any that India had seen before.
Bofors Deal The Government of India and A.B. Bofors in Sweden on March 24, 1986 for the supply of 410 field howitzers ammunition and other accessories as part of the 155 mm gun system at a total cost of Rs.1,437.72 crores
Key players in Boforsscandal Then Prime Minister Rajiv Gandhi Former defence secretary S. K. Bhatnagar. The alleged middle man. OttavioQuattrocchiis the lone surviving suspect in the multi-croreBoforsscandal. Win Chadha: Arms agent. He was accused of receiving a part of the Rs 640 million. Martin Ardbo: Former Boforschief. The Hindujas: Proprietors of the UK-based industrial group.
CONTRADICTIONS The deal was worth 1437.72 crore that time. The kickbacks were sighted to be to the tune of Rs 64 crore, but the probe cost Rs 250 crore, in a time span of 18 years. The HC ruled that the prosecution has failed to prove that the Hinduja Brothers – Gopichand, Prakashchand and Srichand – were linked to the kickbacks in the Boforsdeal.
Important dates March 24, 1986: A $1.4 billion contract between the Indian government and Swedish arms company AB Bofors signed for supply of over 400 155mm howitzers. April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top Indian politicians and key defence officials to secure the deal. April 20, 1987: Then Indian prime minister Rajiv Gandhi assures the LokSabha that neither was any middleman involved in the deal nor were kickbacks paid.. January 22, 1990: Central Bureau of Investigation (CBI) registers complaint in the case. January 26, 1990: Swiss authorities freeze bank accounts of Svenska and AE Services, who allegedly received unauthorised commissions for the deal.
November 7, 1999: Trial court issues arrest warrants against Quattrocchi, while summoning other four accused July 29, 2000: Trial court issues "open non-bailable arrest warrants" against Ardbo. December 20, 2000:Quattrocchi arrested in Malaysia July 28, 2003: Acting on India's request, Britain freezes Quattrocchi's bank accounts February 4, 2004: Delhi High Court clears Rajiv Gandhi of involvement in the Bofors kickbacks scandal. May 31, 2005: Delhi High Court clears Hindujas of involvement in the scandal Feb 24, 2007: Fresh warrant of arrest against Quattrocchi obtained from Delhi court Sep 8, 2009: CBI seeks two weeks time from trial court to explore options against Quattrocchi.
Sep 8, 2009: CBI seeks two weeks time from trial court to explore options against Quattrocchi. Sep 29, 2009: Government tells Supreme Court about decision to withdraw case against Quattrocchi. Dec 14, 2010: A Delhi court reserves order till Jan 4, 2011 on a plea of CBI seeking to drop criminal proceedings against Quattrocchi. 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.
End of case The Bofors saga may at last be over with the Delhi High Court's verdict quashing the charges of criminal conspiracy and cheating against the Hinduja Brothers and the Bofors company
Taking Taking or giving bribe
The Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Bofors AB (BoforsAktiebolaget ) 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 chit.
Covering up incidents No case can Proceeded against the Hinduja or the Bofors Company in the absence of original documents.
Taking Advantage of Official 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 Public Money & 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.