[24] Mukherjee said Gandhi explained his position in a meeting on 19 June 1989, during a meeting between the two at the Prime Minister's residence. He was, however, guilty of knowing about the kickbacks and not taking action on them. On January 22, 1990, the Central Bureau of Investigation (CBI) lodged an FIR against the then president of Bofors Martin Ardbo, the alleged middleman Win Chadda and the Hinduja brothers for criminal conspiracy, cheating and forgery. The other accused persons who died were Bhatnagar, Chadda and Ardbo. On 12 July 2013, Quattrochi died of a heart attack in Milan. [3], On 16 April 1987, a Swedish radio station broke out a story based on a whistleblower in the Swedish police, alleging that the reputed Swedish artillery manufacturer Bofors had paid kickbacks to people in several countries, including Sweden and India, to secure a ₹15 billion (equivalent to ₹160 billion or US$2.3 billion in 2019) contract. October 24, 2001 • Bofors case accused Win Chadha dead • Win Chadha's death won't affect Bofors case: CBI September 19, 2001 • Win Chadha continues to be in serious condition September 3, 2001 • GP and SP Hinduja allowed to travel abroad September 1, 2001 60 crores to top Indian politicians, members of the Congress party and key defence officials to seal the deal. However, the first serious attempt to investigate the Bofors Scandal had been effectively derailed. Page 1 of 50 - About 500 essays. SC agrees to hear appeal filed by BJP leader in October. For most of us, Bofors is a reminder of corruption in defence deals. Rajiv Gandhi government lost 1989 polls but Bofors guns won Kargil war 10 years later. [17] In December 2005, Mr B. Daat, the Additional Solicitor General of India, acting on behalf of the Indian Government and the CBI, requested the British Government that two British bank accounts of Quattrocchi be unfrozen on the grounds of insufficient evidence to link these accounts to the Bofors payoff. 1,500 crore. [2] While the case was being investigated, Rajiv Gandhi was assassinated for unrelated reasons by the LTTE. Pranab Mukherjee defends Bofors scam, says it was just a media trial. For all the latest India News, download Indian Express App. Quattrocchi, who had fled from here on July 29-30, 1993, never appeared before any court in India to face prosecution. A supplementary charge sheet was filed against the Hinduja brothers on October 9, 2000. [19], As there was no extradition treaty between India and Argentina, the case was presented in the Argentine Supreme Court. [2] The scandal relates to illegal kickbacks paid in a US$1.4-billion deal between the Swedish arms manufacturer Bofors with the government of India for the sale of 410 field howitzer guns, and a supply contract almost twice that amount. Before getting know about what the scandal is exactly about, let me tell you something about Bofors. [29] Some of these were paid as personal bribes while others were paid as contributions to political parties. But he was taken off the case on October 22, 1991. President Pranab Mukherjee has said that it has not been proven in any Indian court that the Bofors case was indeed a scandal. According to him, the Bofors 'scandal' was just a media trial. In January 2006 it was discovered that the CBI had quietly unfrozen bank accounts belonging to Italian businessman Ottavio Quattrocchi, one of those accused in the 1986 Bofors scandal which tainted the government of Rajiv Gandhi. However, this was reversed by Supreme Court of India on 7 July 2003. Explore more on Bofors Scandal. In the aftermath, the government did not appeal this decision because of delays in securing an official English translation of the court's decision.[20]. [33] The then defence minister Manohar Parrikar announced that in such cases, middlemen would be paid by the government for fixing arms deals under the name of "legal fees".[34]. … Bofors scandal. [27], The Bofors scandal was a major issue that was highlighted in subsequent elections, which led to the Congress losing power. Later the articles were published in The Indian Express and The Statesman when The Hindu stopped publishing stories about the Bofors scandal under immense government pressure and Chitra Subramaniam moved to the two newspapers. Bhatnagar in October, 1999. May 11, 2012: 25 yrs after Bofors, army buys howitzers for 3000 cr In first after Bofors, army buys howitzers for 3000 cr On 16 January, the Indian Supreme Court directed the Indian government to ensure that Ottavio Quattrocchi did not withdraw money from the two bank accounts in London. The middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. Ranganathan Madhavan (born 1 June 1970) is an Indian actor, writer and film producer who predominantly appears in Tamil and Hindi language films. Justice R S Sodhi (since retired) of the Delhi High Court on May 31, 2005, had quashed the CBI case in the Bofors pay-off scam. The filing of the appeal assumes significance as Attorney General K K Venugopal had recently advised the agency against moving a petition against the high court verdict after a delay of 12 years. It was Madhavan who investigated some of the sensational cases in the country such as the Bofors scandal and Bhopal Gas tragedy. 05", "CBI seeks time to mull on Quattrocchi's case", "Bofors case: 'Petitioner interested in cheap publicity, "Bofors scam: Italian businessman Ottavio Quattrocchi dies", "Bofors gun helped India win against Pak", "Rajiv Gandhi told me to use arms deal payoffs for party funds: Ex-CBI chief", "Rajiv Gandhi wanted Bofors money to run Congress: Ex-CBI chief", "The bofors story : 25 years after - an interview with Sten Lindstrom", "Walk the talk - an interview with V.P.Singh", "Arms and the Middlemen - 7 September 2016", "India Puts New Arms Deals With Finmeccanica On Hold", "Modi govt to legalise middlemen in arms deals? The two accounts, containing €3 million and $1 million, had been frozen. Bofors Scandal The Bofors scandal was a major corruption scandal in India in the 1980s; the then 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. On 5 February 2004 even before Indian National Congress came to power in India, the Delhi High Court quashed the charges of bribery against Rajiv Gandhi and others,[16] On 31 May 2005, the Delhi High Court dismissed the allegations against the British business brothers, Srichand, Gopichand and Prakash Hinduja, but charges against others remain. [26], Michael Hershman of the Fairfax Group, who made one of the earliest discoveries about the Bofors Scam, in an interview with a News Channel in October 2017, spoke about the arms deal and related irregularities. This practice was made illegal by Rajiv Gandhi in 1985 as it led to large kickbacks being paid in defence deals, especially those related to aircraft and ships. The Bofors scandal is supposed to be stamping on the Indian Political corruption. THE SCANDAL Aiming to replace the old field guns and artillery in the hands of the Army, the Indian government in the mid-1980s decided to go ahead with the purchase of bigger caliber 155 mm howitzers. [25] However, as per Sten Lindstrom, the former head of Swedish police, who led the investigations, they did not find anything to suggest that payments had been received by Rajiv Gandhi. The CBI filed a chargesheet against Quattrocchi, Win Chadha who was an agent of the Swedish arms manufacturer Bofors AB, Defence Secretary S.K. The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments who were accused of receiving kickbacks from Bofors AB, a bank principally financed by the Wallenberg family's Skandinaviska Enskilda Banken,[1] for winning a bid to supply to India their 155 mm field howitzer. [31][32], In 2015, the Government of India under the Narendra Modi government made the use of middlemen in arms deals legal, if they called themselves "company representatives". In May 1987, a broadcast by a Swedish radio station revealed that bribes of ₹600 million (equivalent to ₹6.6 billion or US$92 million in 2019) had been paid by Bofors to Indian politicians, members of the Congress party and bureaucrats. The scandal contributed to the defeat of Rajiv Gandhi governmentin the elections three years later. The scale of the corruption was far worse than any that Sweden and India had seen before and directly led to the defeat of Gandhi's ruling Indian National Congress party in the November 1989 general elections. Finally, withdrawal of its case against Quattrocchi. The broadcast claimed that Bofors had bribed several Indian politicians to get 155mm howitzers deal. He passed away on July 13, 2013. The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress (Congress party) politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments who were accused of receiving kickbacks from Bofors AB, a bank … In 1987, Swedish Radio alleged that Bofors paid illegal commissions of Rs. [9][11] As a result of the revelations, the Indian government blacklisted Bofors in 1987, preventing the company from doing business in India.[12]. not afford to spend hard-earned money on his extradition which had already cost Rs 250 crore. CBI has been criticised by experts, social workers, political parties and people at large for the manner in which it has handled this case. On January 22, 1990, the Central Bureau of Investigation (CBI) lodged an FIR against the then president of Bofors Martin Ardbo, the alleged middleman Win Chadda and the Hinduja brothers for … Quattrocchi was released by Argentinian police. In 1999, the ban on Bofors Ab was lifted, a development that came at a time when the Kargil war was underway. The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments who were accused of receiving kickbacks from Bofors AB, a bank principally financed by the Wallenberg family's Skandinaviska Enskilda Banken, for winning a bid to supply to India their 155 mm field howitzer. Just 4 days after the resignation of V P Singh, the news broadcasted on Swedish radio relating to Bofors. [2] Quattrocchi was reportedly close to the family of Rajiv Gandhi and emerged as a powerful broker in the 1980s between big businesses and the Indian government. [7] The journalist who secured the over 350 documents that detailed the payoffs was Chitra Subramaniam reporting for The Hindu. [30] This led to high levels of corruption, and payments being made to politicians, bureaucrats and defence personnel to influence decisions. Long back in 1986 India's defence ministry bought Howitzers for its army's artillery units from this manufacturer for Rs. The lifting of the ban came during the Kargil War, when the Bofors guns proved to be efficient but were crippled by a shortage of spare parts. May 26, 2015, 13:15 PM IST This was picked up by a young journalist from The Hindu, Chitra Subramaniam, who happened to be in Sweden at that time, covering another story. In 1986, the Government of India and Bofors signed a US$285 million contract for the supply of 410 155 mm field howitzers. The scandal rocked the Rajiv Gandhi-led government in the late 1980s. A Delhi court provided temporary relief for Quattrocchi from the case, for lack of sufficient evidence against him, on 4 March 2011. This had been done the previous year for a deal to supply 410 155 mm calibre howitzer guns for the Indian army. Madhavsinh Solanki never opened his mouth on the Bofors scandal. The Bofors Scandal. NEW DELHI: Former CBI joint director K Madhavan (83) passed away on Saturday in New Delhi. It was an Iron and steel company established some 350 years back in the year 1646. The CBI, the Indian federal law enforcement agency, on 23 January 2006 admitted that roughly ₹210 million, about US$4.6 million, in the two accounts have already been withdrawn by the accused. [21] However the case is still going on. The Bofors scandal was a major political scandal that occurred between Sweden and India during the 1980s and 1990s, initiated by Congress politicians and implicating the Indian prime minister, Rajiv Gandhi and several other members of the Swedish and Indian governments who were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer. [9] About a year later, on 16 April 1987, Swedish Radio alleged that Bofors paid kickbacks to people from a number of countries including top Swedish[10] and Indian politicians and key defence officials to seal the deal. [12], On 22 October 1999 (when National Democratic Alliance government led by the Bharatiya Janata Party was in power) the Central Bureau of Investigation (CBI) filed the first chargesheet against Quattrocchi, Win Chadha, Rajiv Gandhi, the defence secretary S. K. Bhatnagar and a number of others. CBI chargesheet in Bofors scandal. 20 political scams that shamed India - India has been rocked by a spate of scams in the recent past. The British government released the funds later. A special CBI court in Delhi on March 4, 2011, had discharged Quattrocchi from the case saying the country could Bofors company: Firstly 'Bofors' is a Swedish arms manufacturing company. he was the one who changed the Iron and Steel company to the Canon manufacturing company. Madhavan's last rites were … Read | Bofors case to be reopened? [18] Quattrocchi was detained in Argentina on 6 February 2007, but the news of his detention was released by the CBI only on 23 February. It was Madhavan who investigated some of the sensational cases in the country such as the Bofors scandal and Bhopal Gas tragedy. Narasimha Rao government in 1991. [23], In his book, Unknown Facets of Rajiv Gandhi, Jyoti Basu and Indrajit Gupta, released in November 2013, former CBI director Dr A P Mukherjee wrote that Rajiv Gandhi wanted commission paid by defence suppliers to be used exclusively for the purpose of meeting expenses of running the Congress party. On March 18, 1986, India signed a Rs 1,437-crore deal with Swedish arms manufacturer AB Bofors for the supply of 400 155 mm Howitzer guns for the Army. [6], The case came into light during Vishwanath Pratap Singh's tenure as defence minister, and was revealed through investigative journalism tipped off by a Reuters news revelation on Swedish radio, followed up by a team led by N. Ram of the newspaper The Hindu. [4] However, none of the newspapers in India were aware of this. Reacting to this, Chief Metropolitan Magistrate Vinod Yadav said that, This page was last edited on 30 December 2020, at 01:54. * The moderation of comments is automated and not cleared manually by, Copyright © 2021 The Indian Express [P] Ltd. 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Though it was widely believed that V. P. Singh resigned from Rajiv Gandhi's cabinet due to the Bofors scandal, Singh clarified that he had resigned due to differences in the cabinet in commissions taken by Indian agents in the HDW submarine deal (Shishumar class)[28], Middlemen were employed in arms deals in India, both during the British Raj as well as in independent India, and commissions were paid to them under various headings and guises. 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Guns, Swedes and the Gandhis — how the Bofors scam tested the limits of the CBI’s power In ‘A Road Well Travelled’, former CBI chief R.K. Raghavan writes about investigating the 2002 Gujarat riots, Bofors scam and cricket match-fixing scandal. The scandal rocked the Rajiv Gandhi-led government in the late 1980s. New Delhi: The Bofors scandal is an example of a genuine case being sabotaged by a government run by a party that has a lot to hide, says former CBI chief R K Raghavan, placing the “guilt” of the case not succeeding in court on those that controlled the agency in the 1990s and in 2004-2014. Before that, retired Justice J D Kapoor, had on February 4, 2004, exonerated late prime minister Rajiv Gandhi in the case and directed the framing of charge of forgery under section 465 of the Indian Penal Code against Bofors company. A year later, on April 16, 1987, a Swedish radio channel alleged that the company had bribed top Indian politicians and defence personnel to secure the contract. 30 :: No. The investigations revealed flouting of rules and bypassing of institutions. Several cases that K Madhavan was instrumental in solving by CBI are: Bhopal Gas Tragedy, Harshad Mehta scam, Bofors Scandal in the late 1980s and the match-fixing scandal too. The Interpol, at the request of the CBI, has a long-standing red corner notice to arrest Quattrocchi. Read more about Madhavsinh Solanki, man who dominated Gujarat politics before BJP's rise on Business Standard. However, his passport was impounded and he was not allowed to leave the country. The first charge sheet in the case was filed on October 22, 1999, against Chadda, Ottavio Quattrocchi, the then defence secretary S K Bhatnagar, Ardbo and the Bofors company. Some points to be noted: Last edited on 30 December 2020, at 01:54, "The Bofors story, 25 years after : Interview with Sten Lindstrom", "Key players in Bofors scandal : Latest Headlines, News - India Today", "Rediff on the NeT: Vir Sanghvi looks back at the Bofors scandal", "25 years of India's 'Watergate': The Bofors scandal", "The Bofors story, 25 years after : An Interview with Sten Lindstrom", "Interview with Chitra Subramaniam and Madhu Trehan", "Win Chadha's death, a setback to Bofors case", "SC court reverses Delhi HC decision to quash all proceeding in Bofors scam", "Welcome to Frontline : Vol. Known to be an honest officer, Madhavan had been involved in the investigations into several high-profile cases, including securities scam, Bofors and the Bhopal gas tragedy. Bofors scam row as external affairs minister After his final chief-ministerial stint, Solanki was inducted as the external affairs minister of the P.V. The scandal is all about when the Indian Defense Ministry had to buy Howitzers for its army's artillery units in March 1986 from AB Bofors, Swedish manufacturer which was worth Rs.1,500 crores ($285 million). Click here to join our channel (@indianexpress) and stay updated with the latest headlines. Here is an overview of some of the most infamous scams that have hit the country over the years. The government of India lost the extradition case as the government of India did not provide a key court order which was the basis of Quattrocchi's arrest. A rising and celebrated officer, K Madhavan also took early retirement from CBI in November 1992, for reasons relatively unknown. A master strategist whose famous "KHAM" formula ensured a landslide victory for the Congress in 1985, Madhavsinh Solanki was a formidable politician Bofors scandal coming into the light. During a visit to Switzerland in 1992, to attend the World Economic Conference, Solanki allegedly met the then Swiss foreign minister Rene Felber and sought assistance in the Bofors scam. Also read | Who is Ajay Agarwal, BJP leader who challenged HC’s verdict in Bofors case, The Indian Express is now on Telegram. The CBI on Friday filed a petition in the Supreme Court challenging a 2005 order of the Delhi High Court quashing all charges against accused persons in the politically sensitive Bofors pay-off case. [5] The Swedish company paid ₹640 million (US$9.0 million) in kickbacks to top Indian politicians and key defence officials. Bofors deal turned into a huge scandal after Swedish Radio claimed bribes were paid for it. NEW DELHI: Former CBI joint director K Madhavan (83) passed away on Saturday in New Delhi. It was alleged that certain public servants and private persons in India and abroad had entered into a criminal conspiracy between 1982 and 1987 in pursuance of which the offences of bribery, corruption, cheating and forgery were committed. The Bofors Scandal. [14], On 10 June 2002, Delhi High Court quashed all proceedings in the case so far. [15], Meanwhile, the central government changed and Indian National Congress came to power after 2004 Lok Sabha elections. Madhavan's career ended on a sad note. [13] In second half of 2001, Win Chadha and S. K. Bhatnagar died. Madhavan has won four Filmfare Awards South and three Tamil Nadu State Film Awards.He has been described as one of the few actors in India who is able to achieve pan-Indian appeal, having appeared in films from seven different languages. Essay on Ethics and Corruption in Governments Around the World 1384 Words | 6 Pages. [2], On 24 March 1986, a $285 million contract between the Government of India and Swedish arms company Bofors was signed for supply of 410 155 mm Howitzer field guns. It was Madhavan who cracked the Swiss bank accounts of those who allegedly received kickbacks in the Bofors deal. Bofors scandal. In an interview with her, published in The Hoot in April 2012 on the 25th anniversary of the revelations,[8] Sten Lindstrom, former chief of Swedish police, discussed why he leaked the documents to her and the role of whistle-blowers in a democracy. It was the biggest arms deal ever in Sweden, and money marked for development projects was diverted to secure this contract at any cost. I think all you know about Alfred Nobel, who has introduced prestigious Noble prize, was owned the company for over two years. [13], However, on 16 January 2006, CBI claimed in an affidavit filed before the Supreme Court that they were still pursuing extradition orders for Quattrocchi. Tell us which of these scams has caused the most damage to the country? In 1999, the Indian government lifted its blacklist on Bofors. [22], 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. Find Bofors Scandal Latest News, Videos & Pictures on Bofors Scandal and see latest updates, news, information from NDTV.COM. [2] In 1997, the Swiss banks released some 500 documents after years of legal battle. ", "Bofors case: Court to hold fresh proceedings in Quattrocchi's case", "Bofors: Court Pulls up CBI's 'Malafide Intentions, Indian Express article on CBI's handling of the Bofors scam under NDA and UPA, Bofors resurrects, gives more ammo to BJP, Death Of A Scandal – Bofors, India's Watergate, Lecture by an IMF aid projects manager about government bribery, https://en.wikipedia.org/w/index.php?title=Bofors_scandal&oldid=997112431, Creative Commons Attribution-ShareAlike License, Not appealing against the judgement of the, De-freezing of Quattrocchi's bank account in London by saying to the Crown Prosecutor that there is no case against Quattrocchi, Putting up a very weak case for Quattrocchi's. Reasons by the LTTE lack of sufficient evidence against him, on 4 March 2011 court quashed all in... Bjp 's rise on Business Standard charge sheet was filed against the Hinduja brothers on 9. Says it was just a media trial that it has not been proven in Indian... 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