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What is Bofors ???

• Bofors is an iron works, cannon maker, and defence industry located in Karlskoga, Sweden. The name Bofors is strongly associated with a 40mm anti-aircraft gun based on a Bofors design.

• Bofors is today split in two parts:

• Saab Bofors Dynamics owned by Saab

• Bofors Defence owned by United Defense

Introduction of Bofors scandal

• The Bofors scandal was a major corruption scandal in India in the1980s.

• Prime Minister Rajiv Gandhi and several others were accused ofreceiving kickbacks from Bofors AB for winning a bid to supplyIndia's 155 mm field howitzer.

• It has been speculated that the scale of the scandal was to the tuneof Rs. 400 million

• The scale of the corruption was far worse than any other that Indiahad seen before.

India's 155 mm field howitzer

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 otheraccessories as part of the 155 mm gun system at a total cost ofRs.1,437.72 crores

• The scandal relates to illegal kickbacks paid in a US$ 1.3 billion dealbetween the Swedish arms manufacturer Bofors with the governmentof India for the sale of 410 field howitzer guns, and a supply contractalmost twice that amount. It was the biggest arms deal ever inSweden, and money marked for development projects was diverted tosecure this contract at any cost.

Most of all, the Bofors scam had a strong emotional appeal because it was a scam related to the defence services and India’s security interests.

-India Today

Key players in Bofors scandal

One more person was trapped...

He is the most respected & famous celebrity of India

Any Guesses ?

HOW THE SCAM WAS EXPOSED

• Dagens Eko (the news service of Swedish public radio) first

threw light on it.

• The Swedish State Radio had broadcast a startling report about an

undercover operation carried out by Bofors, Sweden’s biggest arms

manufacturer, whereby $16 million were allegedly paid to members

of PM Rajiv Gandhi’s Congress.

• The case came to light during Vishwanath pratap singh’s tenure as

defense minister, and was revealed through investigate journalism by

Chitra Subramanian and N.Ram of the news papers the Indian express

and The Hindu

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 probecost Rs 250 crore, in a time span of 18 years.

• The HC ruled that the prosecution has failed to prove thatthe Hinduja Brothers – Gopichand, Prakashchand andSrichand – were linked to the kickbacks in the Bofors deal.

IMPORTANT DATES &

EVENTS

March 24, 1986: A $1.3 billion contract between the Indian government and Swedish arms company AB Bofors signed for supply of over 410 155mm howitzers.

April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top Indian politicians and key defense officials to secure the deal.

January 22, 1990: Central Bureau of Investigation (CBI) registers complaint in the case.

January 26, 1990: Swiss authorities freeze bank accounts of Svenskaand AE Services, who allegedly received unauthorised commissions for the deal.

December 20, 2000: Quattrocchi arrested in Malaysia

July 28, 2003: Acting on India's request, Britain freezes Quattrocchi'sbank accounts

February 4, 2004: Delhi High Court clears Rajiv Gandhi of involvementin the Bofors kickbacks scandal.

May 31, 2005: Delhi High Court clears Hindujas of involvement in thescandal

Sep 8, 2009: CBI seeks two weeks time from trial court to exploreoptions against Quattrocchi.

Sep 29, 2009: Government tells Supreme Court about decision towithdraw case against Quattrocchi.

Dec 14, 2010: A Delhi court reserves order till Jan 4, 2011 on a plea ofCBI seeking to drop criminal proceedings against Quattrocchi.

Case closed

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

Rajiv gandhi was cleared of the bribe case

The Delhi HC ruled that the prosecution has failed to prove that the HindujaBrothers – Gopi chand, Prakash chand and Sri chand – were linked to thekickbacks in the Bofors deal.

Deaths of Former defense secretary Bhatnagar & Win chadda was a majorsetback to case

Unethical issues

Taking or giving bribe

The Prime Minister Rajiv Gandhi and several others were accused of receiving

kickbacks from Bofors AB (Bofors Aktiebolaget ) for winning a bid to supply India's

155 mm field howitzer.

Using political Power

The HC Ruled that the prosecution has failed to prove that the hinduja Brothers –

Gopichand, Prakashchandan & Srichand –were linked to the Kickbacks in the

Bofors Deal, which led to the ouster of late Indian Prime Minister Rajiv Gandhi

from Power.The court Later gave Rajiv Gandhi a clean chit.

Covering up incidents

No case could proceed against the Hinduja or the Bofors Company in the absence of

original documents.

Taking Advantage of Official Position

Former defense Secretary he has taking advantage of his position. He was accused of

abusing his official authority as the then Defence Secretary to tilt the scales in favour

of the Swedish firm for the Rs. 1437-crore contract to supply 155 mm howitzer guns to

the Indian Army.

Wasting Public Money & time

1 June 2005: A Protracted legal wrangle that went on and on for eighteen long years

has ended up as a cipher, as the Delhi high court acquitted three hinduja Brothers in

the sensational Bofors Case. The case related to the alleged kickbacks in a 1986 arms

deal. The deal was worth 1437.72 crore that time. The kickbacks were sighted to be

the turn of Rs. 64 crore, but the probe cost Rs. 250 Crore in a time of 18 years.

Recent News• The Income Tax Appellate Tribunal (ITAT) - commission of over Rs.412

million in the howitzer gun deal.

• The government of India had to pay an excess amount of Swedish Krona (SEK) 242.62 million (about Rs.41 crore)

Allegations against CBI

• The CBI pleaded for withdrawal of proceedings - saying it has got no fresh instructions from the government in the wake of the Income Tax Appellate .

• CBI has been criticised by experts, social workers, political parties and people at large for the manner in which it has handled this case. Some points to note are:

• Delay in lodging an FIR

• Delay in sending letter rogatories

• Not appealing against the judgement of the Delhi High Court in 2004

• 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 extradition from Argentina. Subsequently, no appeal against lower court's verdict

• The withdrawal of the Interpol Red Corner notice

Finally, withdrawal of its case against Quattrocchi:

Reacting to this, Chief Metropolitan Magistrate Vinod Yadav said that, "I agree that there are certain mala fide intentions in the case and there is no doubt in that"

SUGGESTIONS• Transparency in defense transactions

• Should Develop indigenous weapon (Government Announces

Autonomy for OFU and DPSU’s)

• Media should be given more freedom

• Jan lokpal bill