The Bofors scandal involved kickbacks paid by Swedish arms manufacturer Bofors AB to Indian politicians and officials in exchange for winning a bid to supply howitzer guns to India in the 1980s. Prime Minister Rajiv Gandhi and others were accused of receiving kickbacks totaling Rs. 400 million. The scandal highlighted significant corruption in defense deals and involved numerous investigations over 18 years and 250 crore Rs., but ultimately resulted in acquittals and an inability to prosecute key figures due to missing documents. It represented one of the worst corruption scandals in India at the time.
1. BOFORS SCAM Presented By :- AmitJha MBA II Year Department Of Management Studies Pondicherry University
2. Introduction of Bofors scandal The Bofors scandal was a major corruption scandal in India in the 1980s. Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer. It has been speculated that the scale of the scandal was to the tune of Rs. 400 million The scale of the corruption was far worse than any that India had seen before.
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4. Bofors Deal The Government of India and A.B. Bofors in Sweden on March 24, 1986 for the supply of 410 field howitzers ammunition and other accessories as part of the 155 mm gun system at a total cost of Rs.1,437.72 crores
5. Key players in Boforsscandal Then Prime Minister Rajiv Gandhi Former defence secretary S. K. Bhatnagar. The alleged middle man. OttavioQuattrocchiis the lone surviving suspect in the multi-croreBoforsscandal. Win Chadha: Arms agent. He was accused of receiving a part of the Rs 640 million. Martin Ardbo: Former Boforschief. The Hindujas: Proprietors of the UK-based industrial group.
6. CONTRADICTIONS The deal was worth 1437.72 crore that time. The kickbacks were sighted to be to the tune of Rs 64 crore, but the probe cost Rs 250 crore, in a time span of 18 years. The HC ruled that the prosecution has failed to prove that the Hinduja Brothers – Gopichand, Prakashchand and Srichand – were linked to the kickbacks in the Boforsdeal.
7. Important dates March 24, 1986: A $1.4 billion contract between the Indian government and Swedish 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 LokSabha that 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.
8. November 7, 1999: Trial court issues arrest warrants against Quattrocchi, while summoning other four accused 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 against Quattrocchi.
9. Sep 8, 2009: CBI seeks two weeks time from trial court to explore options against Quattrocchi. 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.
10. End of case The Bofors saga may at last be over with the Delhi High Court's verdict quashing the charges of criminal conspiracy and cheating against the Hinduja Brothers and the Bofors company
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Editor's Notes
[1] The case came to light during VishwanathPratap Singh's tenure as defence minister, and was revealed through investigative journalism by ChitraSubramaniam and N. Ram of the newspapers the Indian Express and The Hindu.[2]The scale of the corruption was far worse than any that India had seen before, and directly led to the defeat of Gandhi's ruling Indian National Congress party in the November 1989 general elections
The case relates to the kickbacks in a 1986 arms deal in which the Indian Army procured 155-mm Howitzers from Swedish firm A B Bofors. Three of the accused - former arms dealer Win Chaddha, ex-Defence Secretary S K Bhatnagar and former Bofors honcho Martin Arbdo - died during the course of the probe. For eighteen long years has ended up as a cipher, as the Delhi High Court acquitted three Hinduja Brothers in the sensational Bofors case.