
Not to be confused
with Agusta scandal.
India signed a
contract in February 2010 for 12 AgustaWestland AW101 VVIP
helicopters
In early 2013, an Indian national parliamentary investigation
began into allegations of bribery and corruption involving several
senior officials and helicopter manufacturer AgustaWestland
surrounding the purchase of a new fleet of helicopters. The scandal
has been referred to as the
Chopper scam, or
Choppergate
by elements of the media and popular press.
Several Indian politicians and military officials have been
accused of accepting bribes from AgustaWestland in order to win the
₹36 billion (US$530 million) Indian contract for the supply of 12
AgustaWestland AW101 helicopters; these helicopters are intended to
perform VVIP duties for the President of India and other important
state officials. Ahmed Patel political secretary to Congress
President Sonia Gandhi is alleged by Italian prosecutors to have
received kickbacks from the deal. A note presented in the Italian
court, sent by middleman Christian Michel asks Peter Hulett, an
AugustaWestland employee to target key advisors to Sonia Gandhi and
lists their names as Prime Minister Manmohan Singh, Ahmed Patel,
Pranab Mukherjee, M. Veerappa Moily, Oscar Fernandez, M. K. Narayanan
and Vinay Singh. The note also contains the bribes to be paid out
divided as, "AF" €6 Million, "BUR" €8.4
Million, "Pol" €6 Million and "AP" €3
Million.
On 25 March 2013, India's Defence Minister A.K. Antony confirmed
corruption allegations by stating : "Yes, corruption has taken
place in the helicopter deal and bribes have been taken. The CBI is
pursuing the case very vigorously". As of June 2014, Indian
government has recovered a total amount of ₹2068 crore and has
recovered around ₹1620 crore(45% of total contract value ₹3600
crore) it had paid to AgustaWestland.
On 8 April 2016, The Milan Court of Appeal, in a 225 page
judgement overturned a lower court verdict and convicted
AgustaWestland chopper company chief Giuseppe Orsi to 4 years
imprisonment for paying 30 Million Euro bribe to Indian politicians,
bureaucrats and Indian Air Force officials.
Overview
India signed a contract to purchase 12 AgustaWestland AW101
helicopters in February 2010 for the Communication Squadron of Indian
Air Force, to carry the president, PM and other VVIPs. Controversy
over the contract came to light on 12 February 2013, with the arrest
of Giuseppe Orsi, the CEO of Finmeccanica, AgustaWestland's parent
company by Italian authorities; the following day Indian Defence
Minister A.K. Antony ordered a probe into the contract.
Investigation
After a huge controversy and allegations of corruption, Defence
Minister A.K. Antony, on 12 February, ordered an investigation by the
Central Bureau of Investigation (CBI).
On 25 February 2013, CBI registered a Preliminary Enquiry (PE)
against 11 persons, including the former Indian Air Force Chief, Air
Chief Marshal S.P. Tyagi, and his cousins, besides four
companies.After carrying out the preliminary enquiry, the CBI found
sufficient evidence and registered an FIR on 13 March. The FIR named
13 persons including: former Indian Air Force Chief, Air Chief
Marshal S.P. Tyagi, his three brothers: Juli, Docsa and Sandeep,
brother of former Union minister Santosh Bagrodia, Satish Bagrodia,
Pratap Aggarwal (Chairman and Managing Director of IDS Infotech). The
FIR also named four companies - Italy-based Finmeccanica, UK-based
AgustaWestland and Chandigarh-based IDS Infotech and Aeromatrix.
In 2013 billionaire Indian arms dealer
Abhishek Verma and his Romanian born wife Anca Neacsu were named
suspects in this scandal. Abhishek had played the role of a middleman
in the deal and had interfaced with the politicians in securing CCS
clearance from the Cabinet Committee.This nexus was exposed by
TimesNow TV with their global investigation. According to the
investigators part of the bribes from AgustaWestland was sent to
Abhishek's companies Atlas Defence Systems accounts in Mauritius, to
Bermuda accounts of Atlas Group Ltd and the other part was diverted
to his wife's front company in New York Ganton Limited. These funds
are suspected to have been sent to Indian politicians who were
beneficiaries in this scandal. BJP leader Subramanian Swamy had first
identified the role of Abhishek Verma and his wife Anca Neacsu in
2013 in several of his blogs and press-releases. At present, Abhishek
and his wife Anca are incarcerated at Tihar Jail, New Delhi.
In September 2015, a special CBI court issued an open non-bailable
warrant (NBW) against Christian Michel based on a CBI report that he
was needed to be questioned in the case to know how much amount he
had received as "commission" in the deal. The CBI said that
"Based on this arrest warrant, Interpol India would be requested
to issue a Red Corner Notice against Christian Michel James and
execute the said warrant,". In an interview to a newspaper, he
denied any wrongdoing by stating that he had never met any "Gandhi"
in his life.
Enforcement Directorate (ED) is investigating money laundering
allegations. In March 2015, the ED traced and identified the
properties worth around ₹1.12 crore owned by Christian Michel and
issued a provisional attachment order. The ED claimed that Michel
bought a flat in south Delhi's Safdarjung Enclave in the name of
media firm Media Exim using the bribe money. He was also reportedly
in possession of a luxury car and a Fixed Deposit of ₹54 lakh. In
September 2015, the adjudicating authority confirmed the attachment
of properties and allowed the agency to retain the properties.In
September 2015, the ED attached assets worth about ₹7 crore alleged
to be in the name of family members of ex-IAF chief S P Tyagi.
The CBI and the ED have sent letters rogatory to as many as 8
countries including Italy, Tunisia, Mauritius, UAE, UK, Switzerland,
Singapore and British Virgin Islands.
Joint Parliamentary Committee (JPC) investigation
See also: Joint Parliamentary Committee
On 27 February 2013, UPA-II Government introduced a motion in
Rajya Sabha (the upper house of the Parliament of India) for an
investigation led by a 30-member Joint Parliamentary Committee (JPC).
The motion was passed after a walkout by most of the opposition
parties like BJP, JD(U), Trinamool Congress, CPI, TDP and AGP. During
the debate, Leader of the Opposition Arun Jaitley said the JPC was an
"exercise in futility" and "diversionary tactic".
He argued that the case involved various legal aspects such as
extradition of accused foreigners and custodial interrogation and the
JPC can have "none of these powers", leaving it
ineffective. Many opposition members demanded Supreme Court-monitored
investigation (on the similar lines of 2G spectrum scam). Demands
were also made to establish money trail and issue Letter Rogatory
(LR).
The UPA government initially denied all allegations and claimed it
has "nothing to hide" and that "our track record is
not cover up".
Cancellation of the contract by the Indian Government
India cancelled the ₹3,600 crore deal with AgustaWestland in
January 2014. The government cancelled the contract "on grounds
of breach of the Pre-contract Integrity Pact and the agreement by
AWIL (AgustaWestland International Ltd)". The contract was
frozen in February 2013 after allegations surfaced that Rs 360 crore
was paid as bribe.
Role of Union Law Ministry and Indian President in CBI probe
The CBI approached Union Law Ministry to record statements of M.
K. Narayanan and B V Wanchoo in January 2014. M K Narayanan and B V
Wanchoo were West Bengal and Goa Governors respectively at the time
of CBI's request. Their statements were considered vital as they were
National Security Adviser and Special Protection Group (SPG) chief at
the time of signing of contract with AgustaWestland. Their views were
also considered before Indian Government signed the contract with
AgustaWestland. However Kapil Sibal's Union Law ministry stonewalled
CBI probe by rejecting CBI's request to examine them under the usual
excuse of 'immunity'. The CBI therefore approached President Pranab
Mukherjee to seek permission to examine ex-NSA and ex-SPG. M. K.
Narayanan and B V Wanchoo were questioned by CBI later in June 2014 &
July 2014 respectively.
Recovery
of Bank Guarantee
After the cancellation of the contract, India encashed over ₹250
crore made by AgustaWestland as bank guarantee in the Indian banks in
January 2014. Separately, India requested the Italian government to
retrieve the bank guarantee amount made by the firm in Italian banks
which was more than €275 million (₹2364 crore). On 17 March 2014,
request made by India was rejected by an Italian court. However, the
appellate court, Milan reversed the lower court's judgement and
upheld the claims of the Indian government. Accordingly, in June
2014, Indian government encashed ₹1818 crore taking the total
amount recovered so far to ₹2068 crore.With this, India has
recovered the entire amount of around ₹1620 crore(45% of total
contract value ₹3600 crore) it had paid to AgustaWestland.
Acquittals
by Italian Court
The Italian court investigating the case in October 2014,
acquitted the ex-IAF chief S.P. Tyagi of all corruption charges.It
also acquitted the former Finmeccanica CEO Giuseppe Orsi and former
AgustaWestland head Bruno Spagnolini of “charges of international
corruption” .The court, however, convicted and sentenced them to
two years in prison on the lesser charge of “false invoicing” in
the case. On 8 April 2016, The Milan Court of Appeal, in a 225 page
judgement overturned the lower court verdict and sentenced Giuseppe
Orsi to 4 years imprisonment.