This Article is From May 13, 2016

Now, Allegations Of An Agusta Scam In Chhattisgarh; Incorrect, Says BJP

Prashant Bhushan and Yogendra Yadav alleged that the son of Raman Singh, the Chief Minister of Chhattisgarh, received kickbacks from Agusta in exchange for the state government buying one of its helicopters in 2007.

Highlights

  • Chhattisgarh bought Agusta helicopter in 2007
  • Prashant Bhushan and Yogendra Yadav say deal was corrupt
  • They claim Panama Papers suggest bribes paid to Chief Minister's son
New Delhi: The Agusta helicopter scam has been clawing at the Congress after an Italian court concluded that the Anglo-Italian firm's executives are guilty of paying bribes in India to be selected as the supplier of a dozen helicopters.

But on Thursday, former Aam Aadmi Party members Prashant Bhushan and Yogendra Yadav accused one the most senior leaders of the BJP of illicit links to Agusta. Based on a disclosure from the Panama Papers, which leak information on offshore companies in tax havens, the pair alleged that the son of Raman Singh, the Chief Minister of Chhattisgarh, received kickbacks from Agusta in exchange for the state government buying one of its helicopters in 2007.

Speaking to NDTV, the Chief Minister denied any wrongdoing by his son, describing the allegations as political vendetta.

Chhattisgarh paid 6.1 million dollars for the Agusta helicopter- according to Mr Bhushan and Mr Yadav, that included a commission of about 1.5  million dollars for quick delivery paid to a Hong Kong subsidiary of Agusta.

Mr Yadav and Mr Bhushan alleged that the commission was routed to the British Virgin Islands for firm whose listed directors include  an Abhishak Singh. The Chief Minister's son is named Abhishek -spelled differently from the name on the documents, but the address listed for the British Virgins Island account is allegedly that of the Chief Minister in his home town. "His name is registered as 'Abhishak' Singh. That is probably a clerical mistake. But we have verified the address," Mr Bhushan told reporters at a press conference today.

However, he admitted that there is no evidence of "a money trail' and that is what an inquiry should try to establish.

In 2011, a report by the state auditor or Comptroller and Auditor General or CAG said that the government had erred by failing to sign the Agusta contract within an agreed-upon deadline, which meant Chhattisgarh paid an extra 65 lakhs for then shortlisted helicopter.

The BJP says the CAG report highlights procedural lapses, but in no way suggests the Agusta deal for Chhattisgarh was marked by corruption.
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