This Article is From Apr 29, 2016

Agusta Middlemen Found Air Force Played Ball Easily: Indian Inquiry

Agusta Middlemen Found Air Force Played Ball Easily: Indian Inquiry

Three middlemen, including Christian Michel James, 'made inroads in the Air Force', the Enforcement Directorate had said in March 2015.

Highlights

  • Agusta paid bribes for 3,600-crore helicopter deal
  • 3 middlemen "made inroads" with Air Force, says investigators
  • Then Air Force Chief SP Tyagi denies wrongdoing, collusion with Agusta
New Delhi: The Indian Air Force, under chief SP Tyagi, virtually rolled over to allow middlemen to call the shots in the controversial AgustaWestland helicopter deal, the Enforcement Directorate has found, according to documents accessed exclusively by NDTV.  

Earlier this month, an Italian court said bribes worth 30,000 euros were paid by middlemen and top bosses of Agusta, an Anglo-Italian firm.

It was after Italy began investigating the deal that India launched its own inquiry late in 2013 and cancelled the 3,600-crore for a dozen helicopters for use by top politicians. The CBI has been asked to uncover who accepted the bribes - it alleges former Air Force Chief SP Tyagi is guilty. The Enforcement Directorate, which looks at financial crimes, is studying the money-laundering of the kickbacks.

Three middlemen, including Christian Michel James, "made inroads in the Air Force", the Enforcement Directorate said in March 2015, stating that the trio colluded to " influence and subvert the consistent stand of the Air Force." In particular, the agency says, the Air Force bent its stand on the ceiling of helicopters, allowing Agusta to compete for - and eventually win - the contract in 2010.

The Air Force had originally said that the helicopters should be able to fly at a height of nearly 19,000 feet. Agusta's helicopters could fly only up to 15,000 feet. The altitude requirement was reduced in 2006, benefitting Agusta.  

Former Air Chief Tyagi has said the decision to opt for the Agusta choppers was not his, and that he had retired by the time the contract was signed in 2010. It was cancelled in 2014.

Mr Michel has repeatedly denied any role in arranging or paying the kickbacks in India. He has also said that he did not write the letters quoted in the Italian verdict which are attributed to him and speak of Congress chief Sonia Gandhi as "the driving force" for the government's decision to buy new helicopters.  Mentions of Mrs Gandhi and other top leaders from her party in letters and notes reviewed by the Italian court prove the Congress' top rung was instrumental to the scandal, the ruling BJP has alleged.
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