Rajivs Okay Helped Qattrocchi: Cbi

Former Prime Minister Rajiv Gandhis announcement in Sweden on March 15, 1986, awarding the Rs 1,437-crore gun deal to AB Bofors helped AE Services, Ottavio Quattrocchis company, to meet the deadline just a fortnight away for receiving commission, CBI has informed the Delhi High Court.

The deadline for AE Services/Ottavio Quattrocchi to receive the commission was March 31, 1986. The then Prime Minister of India (Rajiv Gandhi) visited Sweden on March 15, 1986 and announced there that the contract had been awarded to AB Bofors.

On March 24, 1986, the contract with AB Bofors was signed. The deadline of March 31, 1986 was, therefore, met by Quattrocchi, CBI said in its affidavit opposing Quattrocchis plea for quashing of a non-bailable warrant against him.

CBI said Quattrocchi, who was on intimate terms with Rajivs family, received at least $7.34 million as commission from Bofors for helping in swinging in their favour the 155 mm Howitzer gun deal, for which French-made Sofma gun was a strong contender.

On May 2, 1986, India made the first advance payment to AB Bofors and three months later, AE Services/Quattrocchis account was opened by Myles Scott, who admits that AB Bofors entered into an agreement with AE Services in November, 1985 at the instance of Quattrocchi, CBI said.

Indian government had specifically made it clear to Bofors that there would be no agents and middlemen in the deal and commissions paid to any such person would be deducted from the price of the guns.

CBI accused Rajiv Gandhi, who was the Prime Minister then, of not stating the facts correctly to help Quattrocchi.

The then Prime Minister of India had visited Sweden on March 14, 1986 and had a meeting with acting Prime Minister (Ingvar) Carlsson on March 15 wherein he had communicated to the Swedish PM that the Government of India had awarded the contract to Bofors.

Records show the decision (of the Indian government at that point of time) was only to issue a letter of intent to Bofors, the investigating agency said.

The issuance of letter of intent becomes an abnormal act in the context of both contending parties (Bofors and Sofma) making liberal concessions on their earlier offers and coming out with tempting competitive offers.

Therefore, hurried decision for a letter of intent, despite these pending offers, was to circumvent the process with the sole motive to communicate the Swedes that contract has already been awarded to them, CBI alleged.