The Central Bureau of Investigation (CBI) has booked a case against British aerospace company Rolls-Royce, India Director of Rolls-Royce Tim Jones, Indian-origin arms dealer Sudhir Choudhrie, his son Bhanu Choudhrie, and unknown public and private persons in connection for allegedly trying to cheat the government of India, claiming irregularities in aircraft procurement.
The agency found discrepancies in Hindustan Aeronautics Ltd’s (HAL) licence production of 42 extra aircraft and the purchase of 24 Hawk 115 advanced jet trainer aircraft between 2003–2012.
In their official statement, CBI stated, “CBI registers a case against British Aerospace company Rolls Royce India Pvt Ltd, Tim Jones, Director Rolls Royce India Pvt Ltd and private individuals Sudhir Chuadhrie and Bhanu Chaudharie and other unknown public servants and private persons with the objective to cheat the Government of India in the matter of procurement of Hawk Aircraft from Rolls Royce plc, UK and its associate group companies, including M/s Rolls Royce Turbomeca Limited”.
The statement added, “The unknown public servants abused their official positions as public servants and approved & procured a total number of 24 Hawk 115 Advance Jet Trainer (AJT) aircraft for GBP 734.21 million, besides permitting licence manufacturing of 42 additional aircraft by M/s Hindustan Aeronautics Limited (HAL) against materials supplied by the said manufacturer for an additional amount of USD 308.247 million for the said 42 License Manufactured aircraft and USD 7.5 million towards Manufacturer’s Licence Fee, in lieu of huge bribes, commissions and kickbacks paid by the said manufacturer and its officers to intermediaries”.
Rolls-Royce allegedly paid “kickbacks” to middlemen even though agreements, integrity pacts, and related paperwork and decrees relating to the sale prohibit such payments.
As per the FIR, CBI claims that an unknown official from the Ministry of Defence conspired with arms dealer Sudhir Choudhrie between 2003 and 2012 to obtain 24 advance jet trainers for GBP 734 million. The deal also included the right to manufacture 42 aircraft valued at USD 308 million and a manufacturer’s licence fee of USD 7.5 million. However, the CBI discovered significant kickback payments during its preliminary enquiry.
In 2006-07, during an Income Tax department investigation conducted at Rolls-Royce premises, allegedly recovered documents related to the deal during a survey at Rolls-Royce premises in 2006-07. However, according to CBI, the accused was able to “disappear/ remove/ destroy” the documents.
According to reports, Rolls-Royce paid intermediaries GBP 1.85 million (around 19 crores). The CBI claims that Russian armaments firms transferred GBP 100 million into a Swiss bank account under the name of Portsmouth, a company connected to Choudhrie in relation with defence agreements for the acquisition of MIG fighter aircraft.
Between October 2007 and October 2008, the companies Belinea Services Ltd, Cottage Consultant Ltd, and M/s. Carter Consultants Inc, under the name of Choudhrie’s family, received GBP 39.2 million, GBP 32.8 million, and GBP 23 million, respectively.
As per the reports, Sudhir Choudhrie and his son allegedly work as unregistered Indian Agents/middlemen for Rolls Royce. Helping the British aerospace company to secure the contract for supplying the Hawk aircraft in question and allegedly using undue influence on Indian public servants to persuade the Indian government to ratify the arrangement.
Choudhrie is a British citizen and a known arms dealer. He had previously been under investigation by the CBI and the Enforcement Directorate in connection with defence contracts, including allegations of bribery in connection with the 2004 acquisition of artillery guns for an Israeli defence company and the 2006–2007 Barak missile controversy. Due to the lack of evidence, both cases were closed.
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