From Bofors to Rafale: Defence scams that rocked India

New Delhi, Sep 26: In the wake of allegations being levelled against the ruling BJP government over the Rafale fighter jets deal, it is worth looking at some of the defence deals of the past that rocked the nation. The defence deals in India are controversy's favourite child. It really is sad that everytime a major defence deal is struck, fingers are pointed at it.

What complicates matters further in case of defence deals is that because it concerns national security a lot of details must be kept under the shroud of secrecy which unfortunately leaves scope for foulplay.

Here are some of the infamous defence deals that shook the nation:

Tatra trucks scam:

Tatra all-weather all-terrain trucks are used to transport missiles, artillery and troops. These trucks are manufactured in the Czech Republic. Since 1986, the Indian Army has bought over 7,000 Tatra trucks. The alleged Tatra trucks scam came to light when General VK Singh was the Army Chief. It was alleged that BEML officials and the defence ministry siphoned-off at least Rs 750 crore in bribes and commissions in the purchase of Tatra trucks and its components. According to the defence procurement guidelines, all purchases should be made from the original equipment manufacturer (OEM). But BEML had been flouting the guidelines and has been making purchases from a middleman in London.

CBI on August 26, 2014, closed its probe into the Tatra scam saying that there was insufficient evidence to file a charge sheet in the case. The agency filed its closure report before Special CBI court in New Delhi on Tuesday.

Scorpene Submarine scam:

The Scorpene deal scam was a bribery scandal, in which USD 175 million (Rupees 1,100 crores) were alleged to have been paid to government decision makers by Thales. The then Defence minister Pranab Mukherjee had approved a deal to build Scorpene-class submarines worth US$3 billion (Rs 19,000 crores) with Thales, France in October 2005. The Central Bureau of Investigation (CBI), found no evidence of corruption in the deal in 2008. The amount of US$ 175 million was allegedly channelled and paid to middleman billionaire arms dealer Abhishek Verma who is known as the Lord of War and is the prime accused in the Navy War Room spy scandal and many other defence scandals in India.

In 2008, the CBI told the Delhi High Court that after investigations, it had found no evidence of payment of kickbacks in the US$ 6 billion deal. However, the case dragged on for 8 years in Delhi High Court. On January 13, 2016, the Chief Justice of Delhi High Court dismissed the PIL (Public Interest Litigation) filed by Prashant Bhushan in 2007, thereby exonerating Abhishek Verma.

Scorpene submarines are now being built in India under a technology transfer agreement that was part of that contract.

AgustaWestland chopper scam:

In February 2010, India had inked a deal to acquire the 12 three-engine AW-101 helicopters from AgustaWestland worth Rs 3,700 crore for IAF's elite Communication Squadron, which ferries around the President, PM and other VVIPs. On 12 February 2013, controversy over the contract came to light, with arrest of Giuseppe Orsi, the CEO of Finmeccanica, AgustaWestland's parent company by Italian authorities following which then Defence Minister AK Antony scrapped the contract in January, 2014 and ordered probe.

Defence Ministry had allegedly tweaked technical requirements to enable Finmeccanica to bid for the deal with its AW 101 helicopter. Rs 375 crore was allegedly paid as bribery to the middlemen in the deal. Former IAF chief SP Tyagi was allegedly bribed by Finmeccanica to swing the AgustaWestland chopper deal in the company's favour. Tyagi admitted having met one of the alleged middlemen but refuted the charge saying that the whole process started after he retired. A recent revelation by Italian court indicts Tyagi of being a participant in this choppergate.

SP Tyagi did not depose before the Italian court and is currently facing investigation at home by both the Central Bureau of Investigation and the Enforcement Directorate in India.

Coffin scam:

After the Kargil war of 1999, there were allegations of corruption in the purchase of coffins by the then BJP-led Government. The government had incurred a heavy loss of 1,87,000 dollars in the entire transaction. Comptroller and Auditor General (CAG)'s report had found several frauds in the transaction of coffins. The caskets were purchased from Buitron and Baiza, a company based in United States Of America rendering funeral services.

The then ruling government National Democratic Alliance had purchased 500 caskets worth $2500 each which was presumed to be thirteen times the original amount. However, the ambassador from both the countries India and United States had declared in writing that those caskets had a cost worth 2,768 dollars each.

The CBI investigated the case and filed a charge sheet against three Indian Army officers in August 2009. In December 2013, a special CBI court found no evidence and hence discharged all the accused

Bofors scam:

The Rajiv Gandhi government decided to replace the old field guns and artillery with the induction of a bigger caliber 155 mm howitzers. A deal was signed in 1986 between the Indian government and Swedish Armament major AB Bofors for $285 million i.e. roughly about 1500 crores rupees.

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 and Indian politicians and key defence officials to seal the deal. The middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. 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.

The Bofors case not only cost Rajiv Gandhi his Prime Ministership, but also severely dented Congress' reputation.