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Bofors case: Twists and turns

A Delhi court has allowed the Central Bureau of Investigation (CBI) to close its criminal case against Italian businessman Ottavio Quattrochi who was believed to be one of the major players in the Bofors scam.

  • A Delhi court has allowed the Central Bureau of Investigation (CBI) to close its criminal case against Italian businessman Ottavio Quattrocchi who was believed to be one of the major players in the Bofors scam.

    The CBI said that after 25 years and 250 crores, it had not been able to get Mr Quattrocchi extradited to India.

    Following is the chronology of events in the Bofors Howitzer pay-off scandal:
  • On March 24, 1986, a $15 billion contract between the Indian government and Swedish arms company AB Bofors was signed for supply of over four hundred 155 mm Howitzer field guns. More than a year later, Swedish Radio claimed Bofors paid kickbacks to top Indian politicians and key defence officials thereby kicking a political storm in India.
  • In a bid to calm tempers, then Prime Minister Rajiv Gandhi assured the Lok Sabha that no middleman was involved and no kickbacks were paid. However, in August 1987, a Joint Parliamentary Committee (JPC) was set up under B Shankaranand to probe allegations of kickbacks.
  • The JPC submitted its report to Parliament in July, 1989. The scandal became an unprecedented case of corruption and contributed to the defeat of Rajiv Gandhi's Congress party in the general elections in November, 1989.
  • In January, 1990, the Central Bureau of Investigation (CBI) registered a complaint in the case. The Swiss authorities froze bank accounts of Svenska and AE Services, which allegedly received unauthorised commissions for the deal.
  • Quattrocchi, who represented Italian fertiliser firm Snam Progetti for years, left India on July 29, 1993 apparently to avoid any arrest.
  • CBI set up a special investigation team for the case on January 30, 1997, and questioned former Army chief General Krishnaswamy Sundarji 10 days later.
  • CBI filed the first chargesheet on October 22, 1999, naming Win Chadha, Quattrocchi, former defence secretary S K Bhatnagar, former Bofors chief Martin Ardbo and the Bofors company. Rajiv Gandhi's name figured as "an accused not sent for trial" - as he was assassinated in 1991. (Inset: Win Chadha)
  • Quattrocchi was arrested in Malaysia on December 20, 2000, and got bail but was asked to stay in the country. A Malaysian court denied India's request for Quattrocchi's extradition on December 2, 2002.
  • Quattrocchi was detained in Argentina on February 6, 2007, on an Interpol lookout notice. A week later, CBI wrote to Ministry of External Affairs and told Interpol that documentation is being done for the extradition proceedings in Argentina. Hearing of extradition plea began in Argentina on March 23 and on June 8, a court in El Dorado rejected extradition request.
  • A Red Corner notice against Quattrocchi was withdrawn on November 25, 2008. CBI sought two weeks' time from trial court on September 8, 2009, to explore options against the Italian. On September 29, government told the Supreme Court about decision to withdraw case against Quattrocchi.
  • A Delhi court on December 14, 2010, reserved order till January 4, 2011, on a plea of CBI seeking to drop criminal proceedings against Quattrocchi.
  • On January 3, 2011, an Income Tax tribunal ruled that commission in violation of Indian laws was indeed paid to Quattrocchi and Chadha in the gun deal that cost the national exchequer Rs 412.4 million some 23 years ago.
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