BOFORS SCAM

SUBMITTED TO SUBMITTED BY
DR MONIKA JAIN HARISH THAPA
ATUL KIRAN
SEEMA KUMARI
MEANING
Bofors is an iron works, cannon maker,
and defence industry located in
Karlskoga, Sweden. The name Bofors is
strongly associated with a 40mm anti-
aircraft gun based on a Bofors design.
Bofors is today split in two parts:
Saab Bofors Dynamics owned by Saab
Bofors Defence owned by United Defense
INTRODUCTION
The Bofors scandal was a major
corruption scandal in India in the 1980s.
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.
It has been speculated that the scale of the
scandal was to the tune of Rs. 400 million
Bofors deal
The Government of India and A.B.
Bofors in Sweden on March 24, 1986
 for the supply of 410 field howitzers
ammunition and other accessories as part
of the 155 mm gun system at a total cost
of Rs.1,437.72 crores
Key players in Bofors scandal
Then Prime Minister Rajiv Gandhi
Former defence secretary S. K. Bhatnagar.
The alleged middle man. Ottavio
Quattrocchi is the lone surviving suspect in
the multi-crore Bofors scandal.
Win Chadha: Arms agent. He was accused
of receiving a part of the Rs 640 million.
Martin Ardbo: Former Bofors chief.
The Hindujas: Proprietors of the UK-based
 CONTRADICTIONS
 The deal was worth 1437.72 crore that time. The
kickbacks were sighted to be to the tune of Rs 64 crore,
but the probe cost Rs 250 crore, in a time span of 18
years.
 The HC ruled that the prosecution has failed to prove
that the Hinduja Brothers – Gopichand, Prakashchand
and Srichand – were linked to the kickbacks in the
Bofors deal.
SETBACKS
Win chadda death was a major setback.
Rajiv gandhi was cleared of the bribe
case.
Trial court issues "open non-bailable
arrest warrants" against Ardbo.
Former defence secretary Bhatnagar died
of cancer.
Important dates
 March 24, 1986: A $1.4 billion contract between the Indian
government and Swedish arms company AB Bofors signed for
supply of over 400 155mm howitzers.
 April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top
Indian politicians and key defence officials to secure the deal.
 April 20, 1987: Then Indian prime minister Rajiv Gandhi assures
the Lok Sabha that neither was any middleman involved in the deal
nor were kickbacks paid..
 January 22, 1990: Central Bureau of Investigation (CBI) registers
complaint in the case.
 January 26, 1990: Swiss authorities freeze bank accounts of
Svenska and AE Services, who allegedly received unauthorised
commissions for the deal.
November 1989: Rajiv Gandhi loses power as Congress
defeated in general elections.
November 7, 1999: Trial court issues arrest warrants against
Quattrocchi, while summoning other four accused
July 29, 2000: Trial court issues "open non-bailable arrest
warrants" against Ardbo.
December 20, 2000: Quattrocchi arrested in Malaysia
August 6, 2001: Former defence secretary Bhatnagar dies of
cancer.
October 24, 2001: Win Chadha dies of heart attack at his New
Delhi residence.
May 31, 2005: Delhi High Court clears Hindujas of
involvement in the scandal
July 28, 2003: Acting on India's request, Britain freezes
Quattrocchi's bank accounts
July 28, 2003: Acting on India's request, Britain freezes Quattrocchi's bank accounts.
January 4, 2004: Swiss authorities agree to consider CBI's request for providing
Quattrocchi's bank details.
February 4, 2004: Delhi High Court clears Rajiv Gandhi of involvement in the Bofors
kickbacks scandal.
May 31, 2005: Delhi High Court clears Hindujas of involvement in the scandal.
Dec 31, 2005: The CBI tells Crown Prosecution Service (CPS), London, that it has not
been able to link the money in two accounts of Quattrocchi with the Bofors kickbacks
Jan 7, 2006: Two accounts of Quattrocchi in London banks containing 3 million euros
and $1 million were defreezed after then additional solicitor general B. Dutta met the
CPS lawyers.
Feb 6, 2007: Quattrocchi detained at Iguazu international airport on an Interpol
lookout notice.
Feb 13, 2007: CBI writes to Ministry of External Affairs for Argentinean Extradition
Act and tells Interpol Buenos Aires that documentation being prepared for extradition
proceedings.
Feb 24, 2007: Fresh warrant of arrest against Quattrocchi obtained from Delhi court
Feb 26, 2007: Quattrochhi released on bail with condition that he does not leave
Argentina.
Feb 28, 2007: Two-member CBI team to leave for Argentina.
End of case
The Bofors saga may at last be over
with the Delhi High Court's verdict
quashing the charges of criminal
conspiracy and cheating against the
Hinduja Brothers and the Bofors
company
Recent news as on feb 21
The Income Tax Appellate Tribunal
(ITAT) ruled Dec 31 that Quattrocchi and
his associate Win Chadha, who is now
dead, received a commission of over
Rs.412 million in the Rs.15-billion
howitzer gun deal in 1987
Twist by CBI
The CBI pleaded for withdrawal of
proceedings against Italian businessman
Ottavio Quattrocchi in the over two-
decade-old Bofors pay off case, saying it
has got no fresh instructions from the
government in the wake of the Income
Tax Appellate .
Will Quattrocchi be let off?