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PRESENTED BY

SIDDHARTH SAPKALE 57

AMIT SHAH 60

YUVRAJ RANE 55

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The Bofors scandal was a major corruption scandal in India in the 1980s and 1990s

Initiated by Congress politicians and implicating the prime minister Rajiv Gandhi

and several others who were accused of receiving kickbacks from Bofors AB for

winning a bid to supply India's 155 mm field howitzer .

The Swedish company paid 64 crore (US$11.65 million) in kickbacks to top Indian

politicians and key defense officials

The deal was $ 1.4 billion around 1437.72 crore between Indian Govt & Swedish

Arms Company AB Bofors for supply of over 400 155mm howitzers on March 24,

1986

The scale of the corruption was far worse than any that India had seen before.

Introduction

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Then Prime Minister Rajiv Gandhi

Former defence secretary S. K. Bhatnagar.

The alleged middle man. Ottavio Quattrocchi is the lone surviving suspect in themulti-crore Bofors scandal.

Win Chadha: Arms agent. He was accused of receiving a part of the Rs 640 million.

Martin Karl Ardbo: Former Bofors chief.

The Hindujas: Proprietors of the UK-based industrial group.

People Involved in scam..

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March 24, 1986: A $1.4 billion contract between the Indian government andSwedish 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 Lok Sabhathat 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

Important Dates

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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 againstQuattrocchi.

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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.

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Next, on May 21, 1990, $9.2 million moved from Wetelson to account number

123983 of IIDCL, Ansbacher, St Peter Port, Guernsey (Channel Islands)

On July 25, 1988 $7.9 million moved from Colbar to account number 488.320.60Xof Wetelsen Overseas SA, in UBS, Geneva

In April 1987, the Swedish Radio broke the news of bribes in Bofors deal with India. Later, in June 1988, themedia published authoritative documents seized by the Swedish police which established the payoff. By

now, Bofors scam had become a huge national issue.

Two weeks later (on September 16, 1986) AES delivered $7 million into account number254.561.60W in the same bank in the name of Colbar Investments a company controlled by

Q and Maria.

Bofors remitted on September 3, 1986, $7.3 million into AES account number 18051-53 inNordfinanz Bank, Zurich.

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They were frozen on CBIs request. British courts later repeatedly turned down Quattrocchis several

appeals to de-freeze the accounts.

Later, in June 2003, Interpol found that Q and Maria had two accounts, bearing numbers 5A5151516L

and 5A5151516M in the London branch of the Swiss bank BSI AG with Euros three million and $1million.

Within six days of the Swiss government giving these details to India in 1993, Q slipped out of India

Afterwards, on June 12, 1990, $5.3 million was transferred to code-named accounts Arabica,Robusta and Luxor in Austria from Swiss Bank accounts in Geneva.

Later, on June 5, 1990, $2.4 million channelled into code-named account Robusta in Banque KarfincoSA from Swiss Bank Corp, New York.

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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 BrothersGopichand,

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.

Unethical Issues

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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

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 year

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It was a clear case of

abuse of power by those

in the highest

positions. The amazing

turn of events that lead

to Quattricchi'sacquittal, removal of

red corner notice,

defreezing of accounts

came just afterCongress under Sonia

Gandhi returned to

power in 2004

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Agusta