2013 Indian helicopter bribery scandal

On 8th 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 ocials. [10]

1 Overview
India signed a contract to purchase 12 AgustaWestland
AW101 helicopters in February 2010 for the CommuniIndia signed a contract in February 2010 for 12 AgustaWestland cation Squadron of Indian Air Force, to carry the presAW101 VVIP helicopters
ident, 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, AgustaWestIn early 2013, an Indian national parliamentary investi- lands parent company by Italian authorities;[11] the folgation began into allegations of bribery and corruption lowing day Indian Defence Minister A.K. Antony ordered
involving several senior ocials and helicopter manufac- a probe into the contract.[12]
turer AgustaWestland surrounding the purchase of a new
eet of helicopters. The scandal has been referred to as
the Chopper scam, or Choppergate by elements of the
2 Investigation
media and popular press.[1]
Several Indian politicians and military ocials 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
ocials.[2] Ahmed Patel political secretary to Congress
President Sonia Gandhi is alleged by Italian prosecutors
to have received kickbacks from the deal.[3] 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.[4][5][6]

After a huge controversy and allegations of

corruption,[13][14] Defence Minister A.K. Antony,
on 12 February, ordered an investigation by the Central
Bureau of Investigation (CBI).[15][16]

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.[17] After carrying out the preliminary enquiry, the CBI found sucient
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 - Italybased Finmeccanica, UK-based AgustaWestland and
[18][19]
On 25 March 2013, Indias Defence Minister A.K. Chandigarh-based IDS Infotech and Aeromatrix.
Antony conrmed corruption allegations by stating : In 2013 billionaire Indian arms dealer Abhishek Verma
Yes, corruption has taken place in the helicopter deal and and his Romanian born wife Anca Neacsu were named
bribes have been taken. The CBI is pursuing the case very suspects in this scandal. Abhishek had played the role
vigorously.[7] As of June 2014, Indian government has of a middleman in the deal and had interfaced with the
recovered a total amount of 2068 crore[8] and has re- politicians in securing CCS clearance from the Cabinet
covered around 1620 crore(45% of total contract value Committee.This nexus was exposed by TimesNow TV
with their global investigation.[20][21] According to the in3600 crore) it had paid to AgustaWestland.[9]
1

2
vestigators part of the bribes from AgustaWestland was
sent to Abhisheks companies Atlas Defence Systems[22]
accounts in Mauritius, to Bermuda accounts of Atlas
Group Ltd and the other part was diverted to his wifes
front company in New York Ganton Limited.[23][24]
These funds are suspected to have been sent to Indian
politicians who were beneciaries in this scandal. BJP
leader Subramanian Swamy had rst identied the role
of Abhishek Verma[25] and his wife Anca Neacsu[26] in
2013 in several of his blogs and press-releases.[27][28] 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,.[29] In an interview
to a newspaper, he denied any wrongdoing by stating that
he had never met any Gandhi in his life.[30]

6 RECOVERY OF BANK GUARANTEE

ary 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 ineective. 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).[35]
The UPA government initially denied all allegations and
claimed it has nothing to hide and that our track record
is not cover up.[35]

4 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
Enforcement Directorate (ED) is investigating money frozen in February 2013 after allegations surfaced that
[37]
laundering allegations. In March 2015, the ED traced Rs 360 crore was paid as bribe.
and identied the properties worth around 1.12 crore
owned by Christian Michel and issued a provisional attachment order. The ED claimed that Michel bought a 5 Role of Union Law Ministry and
at in south Delhis Safdarjung Enclave in the name of
Indian President in CBI probe
media rm 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 adjudicat- The CBI approached Union Law Ministry to record stateing authority conrmed the attachment of properties and ments of M. K. Narayanan and B V Wanchoo in Janallowed the agency to retain the properties.[31] In Septem- uary 2014.[38] M K Narayanan and B V Wanchoo were
ber 2015, the ED attached assets worth about 7 crore West Bengal and Goa Governors respectively at the time
alleged to be in the name of family members of ex-IAF of CBIs request. Their statements were considered vital
chief S P Tyagi.[32]
as they were National Security Adviser and Special ProThe CBI and the ED have sent letters rogatory to as tection Group (SPG) chief at the time of signing of conmany as 8 countries including Italy, Tunisia,[33] Mauri- tract with AgustaWestland. Their views were also considtius, UAE, UK, Switzerland, Singapore and British Vir- ered before Indian Government signed the contract with
AgustaWestland. However Kapil Sibal's Union Law mingin Islands.[29][34]
istry stonewalled CBI probe by rejecting CBIs request to
examine them under the usual excuse of 'immunity'. The
CBI therefore approached President Pranab Mukherjee
[39]
3 Joint Parliamentary Committee to seek permission to examine ex-NSA and ex-SPG.
M. K. Narayanan and B V Wanchoo were questioned by
(JPC) investigation
CBI later in June 2014 & July 2014 respectively.[40][41]
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.[35][36]
During the debate, Leader of the Opposition Arun Jaitley
said the JPC was an exercise in futility and diversion-

6 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.[42] Separately, India requested the Italian government to retrieve the bank
guarantee amount made by the rm in Italian banks which
was more than 275 million (2364 crore).[43][44] On 17
March 2014, request made by India was rejected by an

3
Italian court.[45] However, the appellate court, Milan re- [11] Emilio Parodi and Stephen Jewkes (12 February 2013).
Finmeccanica head arrested over India bribe allegations.
versed the lower courts judgement and upheld the claims
Reuters.
of the Indian government.[46] Accordingly, in June 2014,
Indian government encashed 1818 crore taking the to- [12] VVIP chopper deal scam: Italy arrests Finmeccanica
tal amount recovered so far to 2068 crore.[8] With this,
CEO, India orders CBI probe. ZEE News. 13 FebruIndia has recovered the entire amount of around 1620
ary 2013. Retrieved 28 February 2013.
crore(45% of total contract value 3600 crore) it had
[13] Chopper Deal: BJP Attacks UPA, Says Its 'Raining
paid to AgustaWestland.[9]
Scams". 15 February 2013. Retrieved 5 October 2013.

Acquittals by Italian Court

[14] St Antony needs to be decanonised. 13 February 2013.

Retrieved 5 October 2013.
[15] Kumar, Vinay (13 February 2013). CBI probe ordered.

The Hindu (Chennai, India). Retrieved 5 October 2013.

The Italian court investigating the case in October 2014,
acquitted the ex-IAF chief S.P. Tyagi of all corruption
[16] Italy arrests Finmeccanica CEO, India orders CBI
charges.[47] It also acquitted the former Finmeccanica
probe. 13 February 2013. Retrieved 5 October 2013.
CEO Giuseppe Orsi and former AgustaWestland head
Bruno Spagnolini of charges of international corruption [17] Pandey, Devesh K. (25 February 2013). CBI names
Tyagi, cousins in PE. The Hindu (Chennai, India). Re.The court, however, convicted and sentenced them to
trieved 5 October 2013.
two years in prison on the lesser charge of false invoic[48]
ing in the case.
On 8th April 2016, The Milan Court [18] CBI registers FIR against former Air chief SP Tyagi.
of Appeal, in a 225 page judgement overturned the lower
The Times Of India. 13 March 2013. Retrieved 5 October
court verdict and sentenced Giuseppe Orsi to 4 years im2013.
prisonment. [49]
[19] CBI les FIR against Air Force ex-chief SP Tyagi, 11
others. 13 March 2013. Retrieved 5 October 2013.

References

[1] SEARCH RESULTS FOR Choppergate. India Today.

Retrieved 4 March 2013.
[2] Kumar, Vinay (18 February 2013). Chopper scam:
Long-drawn legal battle ahead. The Hindu (Chennai, India). Retrieved 25 February 2013.
[3] Does AP mean Ahmed Patel, asks prosecutor in Italy
court; middleman says dont know. The Indian Express.
10 January 2014.
[4] Sonia Gandhi, PM tainted by chopper scam as note reveals Agusta was advised to target top leaders to win contract.

[20] Times Now TV global investigation role of Abhishek

Verma and his wife Anca Neacsu in 12 VVIP Chopper
scandal.
[21] Times of India role of Abhishek Verma middleman in
Agusta VVIP choppers.
[22] Atlas Defence Systems - Abhishek Verma.
[23] Ganton Ltd front company of Abhishek Verma
newsitem.
[24] Ganton Limited New York is a front of Abhishek Verma
controlled by his wife Anca Neacsu - Delhi High Court
order.
[25] MOD seeks info from Italy on Abhishek Vermas role in
VVIP chopper Scam.

[5] AgustaWestland scam: Has UPA subverted India into a

kleptocracy, asks Jaitley. News18.

[26] Role of Anca Neacsu wife of Abhishek Verma in VVIP

Chopper Scam identied.

[6] FP Sta (2 February 2014). "'Target' Sonia, her key advisers: Middleman told AgustaWestland. Firstpost.

[27] Role of Abhishek Verma identied by Subramanian

Swamy MP.

[7] Bribes were taken in the VVIP helicopter deal, admits

Defense Minister AK Antony. India today. 25 March
2013. Retrieved 19 March 2013.

[28] Role of Abhishek Verma in helicopter scandal - Wikileaks.

[8] India recovers Rs.1,818 crore from AgustaWestland.

Retrieved 8 June 2014.
[9] India Scraps Rs.3,600 crore AgustaWestland Chopper
Deal. Retrieved 8 June 2014.
[10] CBI Seeks Italian Courts Order On AgustaWestland
Graft. NDTV.com. 27 April 2016. Retrieved 3 May
2016.

[29] Open NBW Issued Against Accused UK National. Retrieved 30 September 2015.
[30] VVIP chopper scam: Never met Sonia Gandhi in my life,
says accused middleman. ABP Live. ABP News Bureau.
27 April 2016.
[31] First property attachment in AgustaWestland VVIP helicopter deal scam. Retrieved 30 September 2015.
[32] ed-attaches-assets-of-tyagi-family.

[33] Money trail in VVIP chopper scam takes ED to UK,

Switzerland. Retrieved 30 September 2015.
[34] CBI awaiting response from 8 countries. Retrieved 30
September 2015.
[35] Parliament passes JPC probe into chopper scam. Indian
Express. 27 February 2013. Retrieved 28 February 2013.
[36] Govt adopts motion for JPC probe, opposition walks
out. FirstPost. 28 February 2013. Retrieved 4 March
2013.
[37] Rs 3,600 crore VVIP chopper deal with AgustaWestland
scrapped in view of bribery allegations. The Times Of
India. 2 January 2014.
[38] CBI seeks Home, Law ministries advice to examine B V
Wanchoo, M K Narayanan.
[39] VVIP chopper deal: CBI seeks Presidents permission to
question Narayanan, Wanchoo. The Times Of India.
[40] CBI questions West Bengal governor M K Narayanan as
witness in VVIP chopper deal. Patrika Group. 28 June
2014. Retrieved 4 July 2014.
[41] Goa Governor, Questioned By the CBI in AugustaWestland Chopper Deal, May Resign. Patrika Group. 4 July
2014. Retrieved 4 July 2014.
[42] India encashes over Rs250 cr bank guarantee of
AgustaWestland. Retrieved 8 June 2014.
[43] AgustaWestland deal: Italy court rejects Indias plea to
recover bank guarantee. Indian Express. 18 March 2014.
[44] Italy judge rejects India bid to recover AgustaWestland
guarantees. NDTV. 18 March 2014.
[45] Italy judge rejects India request to recover AgustaWestland guarantees: Sources. Times of India. 18 March
2014.
[46] India to encash 228 m euros bank guarantees of Agusta.
Retrieved 8 June 2014.
[47] AgustaWestland chopper scam: No corruption by exIAF chief SP Tyagi, says Italian court.
[48] Chopper scam: Finmeccanica ex-heads cleared of graft
charge, get 2 yrs in jail. The Indian Express. 10 October
2014.
[49] CBI Seeks Italian Courts Order On AgustaWestland
Graft. NDTV.com. 27 April 2016. Retrieved 3 May
2016.

REFERENCES

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