The Bofors case will be re-opened and probed by the Central Bureau of Investigation, the parliamentary panel was informed.
The CBI has replied to a parliamentary committee, most members of which had recommended that the agency reinvestigate the Bofors case and bring it before the Supreme Court.
The CBI has indicated that it can support the Special Leave Petition pending in the Supreme Court.
The Rs. 1,437 crore deal between India and the Swedish arms manufacturer A B Bofors for the supply of 400 155mm Howitzer guns for Indian Army was entered on March 24, 1986. The Swedish Radio on April 16, 1987 had claimed that the company had paid bribes to top Indian politicians and defence personnel.
The CBI on January 22, 1990 had registered the FIR for the alleged offence of criminal conspiracy, cheating, forgery under the IPC and other sections of the Prevention of Corruption Act against Martin Ardbo, the then President of AB Bofors, alleged middleman Win Chadda and Hinduja brothers.
It had 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 to the extent of Rs. 64 crore in the contracts for the supply of Bofors guns.
The first charge sheet in the case was filed on October 22, 1999 against Chadda, Quattrocchi, then Defence Secretary S K Bhatnagar, Ardbo and the Bofors company. A supplementary charge sheet against Hinduja brothers was filed on October 9, 2000.
A special CBI court in Delhi On March 4, 2011, had discharged Mr Quattrocchi from the case saying the country cannot afford to spend hard-earned money on his extradition which has already cost Rs. 250 crore.