Bofors scandal. 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. NEW DELHI: Former CBI joint director K Madhavan (83) passed away on Saturday in New Delhi. [19], As there was no extradition treaty between India and Argentina, the case was presented in the Argentine Supreme Court. A supplementary charge sheet was filed against the Hinduja brothers on October 9, 2000. [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. The Bofors Scandal. 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 … [2] While the case was being investigated, Rajiv Gandhi was assassinated for unrelated reasons by the LTTE. On 12 July 2013, Quattrochi died of a heart attack in Milan. [9][11] As a result of the revelations, the Indian government blacklisted Bofors in 1987, preventing the company from doing business in India.[12]. 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. [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". Find Bofors Scandal Latest News, Videos & Pictures on Bofors Scandal and see latest updates, news, information from NDTV.COM. Bhatnagar in October, 1999. Also read | Who is Ajay Agarwal, BJP leader who challenged HC’s verdict in Bofors case, The Indian Express is now on Telegram. 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. 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. Just 4 days after the resignation of V P Singh, the news broadcasted on Swedish radio relating to Bofors. It was the biggest arms deal ever in Sweden, and money marked for development projects was diverted to secure this contract at any cost. The investigations revealed flouting of rules and bypassing of institutions. 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. CBI has been criticised by experts, social workers, political parties and people at large for the manner in which it has handled this case. It was Madhavan who cracked the Swiss bank accounts of those who allegedly received kickbacks in the Bofors deal. 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. 60 crores to top Indian politicians, members of the Congress party and key defence officials to seal the deal. 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. 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. Explore more on Bofors Scandal. [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. 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. [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. [14], On 10 June 2002, Delhi High Court quashed all proceedings in the case so far. [13] In second half of 2001, Win Chadha and S. K. Bhatnagar died. Madhavan's last rites were … He passed away on July 13, 2013. 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. It was Madhavan who investigated some of the sensational cases in the country such as the Bofors scandal and Bhopal Gas tragedy. Quattrocchi was released by Argentinian police. Reacting to this, Chief Metropolitan Magistrate Vinod Yadav said that, This page was last edited on 30 December 2020, at 01:54. 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. Here is an overview of some of the most infamous scams that have hit the country over the years. 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. 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. 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[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. Page 1 of 50 - About 500 essays. The Interpol, at the request of the CBI, has a long-standing red corner notice to arrest Quattrocchi. [30] This led to high levels of corruption, and payments being made to politicians, bureaucrats and defence personnel to influence decisions. Essay on Ethics and Corruption in Governments Around the World 1384 Words | 6 Pages. In 1986, the Government of India and Bofors signed a US$285 million contract for the supply of 410 155 mm field howitzers. Finally, withdrawal of its case against Quattrocchi. not afford to spend hard-earned money on his extradition which had already cost Rs 250 crore. Pranab Mukherjee defends Bofors scam, says it was just a media trial. The scandal rocked the Rajiv Gandhi-led government in the late 1980s. Read more about Madhavsinh Solanki, man who dominated Gujarat politics before BJP's rise on Business Standard. 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. Madhavan's career ended on a sad note. 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). 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. * The moderation of comments is automated and not cleared manually by, Copyright © 2021 The Indian Express [P] Ltd. 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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. The scandal contributed to the defeat of Rajiv Gandhi governmentin the elections three years later. 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. He was, however, guilty of knowing about the kickbacks and not taking action on them. In 1999, the Indian government lifted its blacklist on Bofors. Madhavsinh Solanki never opened his mouth on the Bofors scandal. 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. 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. [7] The journalist who secured the over 350 documents that detailed the payoffs was Chitra Subramaniam reporting for The Hindu. Before getting know about what the scandal is exactly about, let me tell you something about Bofors. The two accounts, containing €3 million and $1 million, had been frozen. Tell us which of these scams has caused the most damage to the country? The Bofors Scandal. [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. I think all you know about Alfred Nobel, who has introduced prestigious Noble prize, was owned the company for over two years. [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. 20 political scams that shamed India - India has been rocked by a spate of scams in the recent past. 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,[1] for winning a bid to supply to India their 155 mm field howitzer. [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. [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 coming into the light. A special CBI court in Delhi on March 4, 2011, had discharged Quattrocchi from the case saying the country could The scandal rocked the Rajiv Gandhi-led government in the late 1980s. 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]. According to him, the Bofors 'scandal' was just a media trial. May 26, 2015, 13:15 PM IST 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 The broadcast claimed that Bofors had bribed several Indian politicians to get 155mm howitzers deal. 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. 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. This had been done the previous year for a deal to supply 410 155 mm calibre howitzer guns for the Indian army. A Delhi court provided temporary relief for Quattrocchi from the case, for lack of sufficient evidence against him, on 4 March 2011. The middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. [21] However the case is still going on. [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. Long back in 1986 India's defence ministry bought Howitzers for its army's artillery units from this manufacturer for Rs. 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. [2] In 1997, the Swiss banks released some 500 documents after years of legal battle. 30 :: No. 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 other accused persons who  died were Bhatnagar, Chadda and Ardbo. [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. [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. 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. 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. For most of us, Bofors is a reminder of corruption in defence deals. 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. 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 … [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. 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. Bofors deal turned into a huge scandal after Swedish Radio claimed bribes were paid for it. [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. A master strategist whose famous "KHAM" formula ensured a landslide victory for the Congress in 1985, Madhavsinh Solanki was a formidable politician [4] However, none of the newspapers in India were aware of this. Bofors company: Firstly 'Bofors' is a Swedish arms manufacturing company. May 11, 2012: 25 yrs after Bofors, army buys howitzers for 3000 cr In first after Bofors, army buys howitzers for 3000 cr But he was taken off the case on October 22, 1991. Ranganathan Madhavan (born 1 June 1970) is an Indian actor, writer and film producer who predominantly appears in Tamil and Hindi language films. 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. Quattrocchi, who had fled from here on July 29-30, 1993, never appeared before any court in India to face prosecution. 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. [27], The Bofors scandal was a major issue that was highlighted in subsequent elections, which led to the Congress losing power. CBI chargesheet in Bofors scandal. 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. … [15], Meanwhile, the central government changed and Indian National Congress came to power after 2004 Lok Sabha elections. 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