Quattrochi Got $7m From Bofors Deal, Says Cbi

Italian businessman Ottavio Quattrochi got at least $ 7.34 million as commission for pushing through the Rs 1,437-crore Bofors guns deal in 1985, the Central Bureau of Investigation has informed the Delhi high court on the basis of documents received from Swiss authorities.

Opposing Quattrocchis anticipatory bail application, the investigating agency said, CBI had been able to receive the documents in January, 1997 from Swiss authorities and it is clear from these documents that Ottavio Quattrocchi is the beneficiary of the moneys paid into AE Services account, the first instalment of which alone was US $7.34 million.

The basis of constituting Quattrocchi as agent was the undoubted influence which Quattrocchi wielded on the political and bureaucratic circles which would facilitate Bofors in obtaining contract to the tune of Rs 1437.72 crores, the investigating agency said in its affidavit.

 

It would, therefore, follow that Quattrocchi had been able to successfully negotiate with the then Prime Minister and defence minister and other public servants concerned to obtain the contract for his principal and the public servants had in turn, in abuse of their position, conferred pecuniary benefits on Quattrocchi which would constitute offences under Prevention of Corruption Act and the Indian Penal Code, it said.

Quattrocchi was engaged by AB Bofors as its agent contrary to the prohibition imposed by Indian government only because of his close proximity with the then Prime Minister and his family and the perception generally of bureaucrats and ministers that he was in a position of vast influence so as to determine the fate of a contract of this nature going into millions of dollars.

The fact that the entirety of the benefit of the (Bofors gun) contract of November 15, 1985 has gone to Ottavio Quattrocchi is clear from the other documents furnished to CBI by the Swiss authorities, the investigating agency said. M/s AE Services, within days of receipt (of the commission), transferred approximately 97 per cent of the amount received by it from M/S Bofors to the account of M/S Colbar Investment Ltd Inc, the CBI said.

This account of M/S Colbar was to be operated by either Ottavio Quattrocchi or his wife Maria Quattrocchi, it added.

A division bench comprising justice Devender Gupta and justice N G Nandi posted the matter for further hearing on April 20. Quattrocchi has sought quashing of a non-bailable arrest warrant pending against him since last year. The CBI said the documents in possession of the agency would show that the beneficiary of AE Services was none other than Quattrocchi.