First Major Scam

In my blog today, I am writing about India’s first major scam which rattled the political scene of the country and  the PM at the time of scam, Rajiv Gandhi and his party lost the next general elections.Although the value of the scam was about Rs 64 Cr, which as compared to later scams can be considered as peanuts, but during those days it was considered to be a big figure.

Bofors Scam

This was was first major political scandal that happened between India & Sweeden, and implicated the PM Rajiv Gandhi and several members of Indian and Sweedish Govts, who were accused  of receiving kickbacks from Bofors AB for winning the contract for supply of 155mm Field Howitzer Guns. The value of the contract was US$1.4 Billions and total kickback amount was Rs 64 Crore, which was supposed to be paid to Indian officials , Key Defence Personnel and middle men.

This scandal broke out in 1987, when VP Singh was Defence Minister. The scandal came into open when news agency Reuters reveal this on Swiss Radio. This lead was followed by N Ram of the Indian Newspaper The Hindu, whose overseas journalist Chitra Subramaniam secured more than 350 documents that detailed payoffs, which appeared in The Hindu. Later the articles were published in The Indian Express and The Statesman, when The news paper Hindu stopped publishing stories about the Bofors scandal under immense government pressure and Chitra Subramaniam moved to the two newspapers.

After the scandal came out in open, implicating politicians from both the countries. As a result of the revelations, the Indian Govt blacklisted Bofors in 1987, preventing the company from doing the business with India.

The middleman associated with the scandal was Ottavio Quattrocchi an Italian Businessman, who represented petrochem firm Snamprogetti. Being an Italian, he was reportedly very close to family of Sonia & Rajiv Gandhi,  and he was very powerful broker in 80s between overseas businessmen & Indian Govt.The Indian middle man was Win Chadha.

Inquiry of this scandal was later transferred to CBI.

Again from 1991, it was Congress govt at centre and they did not show any interest in perusing the case.

In between Swiss Govt in 1997, released some 500 documents after years of legal battle.

In Oct 1999, NDA Govt. led by Atal Bihari Vajpayee, it was first time the CBI filed first charge sheet against  Quattrochhi, Win Chadda, Rajiv Gandhi, Defence Secretary SK Bhatnagar and nos. of others.

Delhi High Court in June 2002 quashed all proceedings in the case so far. However this was reversed by Supreme Court in July 2003.

In 2004, Congress again came back to power. Delhi High court quashed the charges of bribery against Rajiv Gandhi, and dismissed the charges against Hinduja Brorthers, but charges against others remained. Govt requested British Govt to un freeze the personal bank accounts of Quottrachi, which had a deposits of almost 4 million Euros.

In Jan 2006, CBI claimed in affidavit that they want to peruse extradition of Quattrochoi, that time he was in Argentina. As there was no extradition treaty between India and Argentina, the case was presented in the Supreme Court of Argentina. The government of India lost the extradition case as   India did not provide a key court order which was the basis of Quattrocchi’s arrest.

Despite the controversy, the Bofors gun was used extensively as the primary field artillery during the Kargil War with Pakistan and gave India an edge against Pakistan according to battlefield commanders.

It was very evident that Congress in league with CBI tried their level best to save Quattorochi.

Over the years,the main Allegations against CBI were

Delay in lodging FIR

Not appealing against the judgement of the Delhi High Court.

De freezing of Quattrochhi’s bank accounts in London by saying to British Prosecutor that there is no pending case against him.

Presenting a very weak case for Quattrochhi’s extradition from Argentina, and subsequently no appeal against lower case verdict.

The withdrawl of the Interpol Red Corner notice.

Finally withdrawing the case against Quattrochhi.

 

On 12 July 2013, Quattrochi died of a heart attack in Milan. In the mean time the Indian middle man Win Chadha had also expired.

It was Independent India’s first biggest scam,  where ruling party used CBI to scuttle the enquiry for their self interest.

This scandal presented true picture of Indian Political system. Bofors was the first of such scandal, and in the coming years these type of scandals grew and politicians made huge amount of money.

It’s been a story of massive cover-up and deception.

When during the campaign for effective Lokpal Bill, it was mocked considering how CBI has been used by Congress in past, as paving the way for a supercop agency. But such an agency may have offered the best chance of exposing the scandal.

The cynic in us may say that such an agency will never come up for precisely that reason; yet, we have to hope that it will. We may be able to do nothing about our monumentally corrupt past, even when it led right up to the Prime Minister’s Office, but we ought to shape our destiny going forward at least. And in that endeavour, the Bofors case, with all its failings, can be the catalyst that should guide us towards establishing institutions that genuinely combat corruption.

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