Rolls-Royce to return Rs 18 crore to govt

Facing the heat of a CBI probe in an alleged bribery scandal, British firm Rolls-Royce has written to the state-owned Hindustan Aeronautics Limited (HAL) that it was ready to return Rs 18.4 crore paid by it to its commission agents to the government.

The defence ministry ordered a CBI probe into Rolls-Royce's alleged hiring of middlemen in contracts worth around Rs 10,000 crore for supplying aircraft engines to HAL.

Rolls-Royce has written a letter to the HAL on March 5 claiming that it has paid only £1.8 million(Rs 18 crore) as commission to its agent Aashmore Private Limited and was willing to return that amount to the government, a senior government source said. The aerospace public sector undertaking (PSU) is now planning to forward the letter to the government for further action on the matter, he said. The aerospace PSU is now planning to forward the letter to the government for further action on the matter, he said.

The defence ministry has already put on hold all existing and future deals with Rolls- Royce pending a Central Bureau of Investigation probe ordered into allegations of bribery and engaging middlemen in contracts for supply of aircraft engines to HAL.

Meanwhile, the CBI in the next few days will register a preliminary inquiry into the alleged bribery case.