30 :: No. [9][11] As a result of the revelations, the Indian government blacklisted Bofors in 1987, preventing the company from doing business in India.[12]. [2], On 24 March 1986, a $285 million contract between the Government of India and Swedish arms company Bofors was signed for supply of 410 155 mm Howitzer field guns. [22], Despite the controversy, the Bofors gun was used extensively as the primary field artillery during the Kargil War with Pakistan and gave India 'an edge' against Pakistan according to battlefield commanders. Here is an overview of some of the most infamous scams that have hit the country over the years. [29] Some of these were paid as personal bribes while others were paid as contributions to political parties. 05", "CBI seeks time to mull on Quattrocchi's case", "Bofors case: 'Petitioner interested in cheap publicity, "Bofors scam: Italian businessman Ottavio Quattrocchi dies", "Bofors gun helped India win against Pak", "Rajiv Gandhi told me to use arms deal payoffs for party funds: Ex-CBI chief", "Rajiv Gandhi wanted Bofors money to run Congress: Ex-CBI chief", "The bofors story : 25 years after - an interview with Sten Lindstrom", "Walk the talk - an interview with V.P.Singh", "Arms and the Middlemen - 7 September 2016", "India Puts New Arms Deals With Finmeccanica On Hold", "Modi govt to legalise middlemen in arms deals? NEW DELHI: Former CBI joint director K Madhavan (83) passed away on Saturday in New Delhi. It was Madhavan who investigated some of the sensational cases in the country such as the Bofors scandal and Bhopal Gas tragedy. 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Ranganathan Madhavan (born 1 June 1970) is an Indian actor, writer and film producer who predominantly appears in Tamil and Hindi language films. Before that, retired Justice J D Kapoor, had on February 4, 2004, exonerated late prime minister Rajiv Gandhi in the case and directed the framing of charge of forgery under section 465 of the Indian Penal Code against Bofors company. Click here to join our channel (@indianexpress) and stay updated with the latest headlines. The middleman associated with the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemicals firm Snamprogetti. 60 crores to top Indian politicians, members of the Congress party and key defence officials to seal the deal. The government of India lost the extradition case as the government of India did not provide a key court order which was the basis of Quattrocchi's arrest. [14], On 10 June 2002, Delhi High Court quashed all proceedings in the case so far. For most of us, Bofors is a reminder of corruption in defence deals. The scandal contributed to the defeat of Rajiv Gandhi governmentin the elections three years later. [9] About a year later, on 16 April 1987, Swedish Radio alleged that Bofors paid kickbacks to people from a number of countries including top Swedish[10] and Indian politicians and key defence officials to seal the deal. The scandal rocked the Rajiv Gandhi-led government in the late 1980s. [7] The journalist who secured the over 350 documents that detailed the payoffs was Chitra Subramaniam reporting for The Hindu. A rising and celebrated officer, K Madhavan also took early retirement from CBI in November 1992, for reasons relatively unknown. The filing of the appeal assumes significance as Attorney General K K Venugopal had recently advised the agency against moving a petition against the high court verdict after a delay of 12 years. [18] Quattrocchi was detained in Argentina on 6 February 2007, but the news of his detention was released by the CBI only on 23 February. [6], The case came into light during Vishwanath Pratap Singh's tenure as defence minister, and was revealed through investigative journalism tipped off by a Reuters news revelation on Swedish radio, followed up by a team led by N. Ram of the newspaper The Hindu. This had been done the previous year for a deal to supply 410 155 mm calibre howitzer guns for the Indian army. Read | Bofors case to be reopened? Before getting know about what the scandal is exactly about, let me tell you something about Bofors. This was picked up by a young journalist from The Hindu, Chitra Subramaniam, who happened to be in Sweden at that time, covering another story. Read more about Madhavsinh Solanki, man who dominated Gujarat politics before BJP's rise on Business Standard. A master strategist whose famous "KHAM" formula ensured a landslide victory for the Congress in 1985, Madhavsinh Solanki was a formidable politician In 1999, the ban on Bofors Ab was lifted, a development that came at a time when the Kargil war was underway. The first charge sheet in the case was filed on October 22, 1999, against Chadda, Ottavio Quattrocchi, the then defence secretary S K Bhatnagar, Ardbo and the Bofors company. A special CBI court in Delhi on March 4, 2011, had discharged Quattrocchi from the case saying the country could The lifting of the ban came during the Kargil War, when the Bofors guns proved to be efficient but were crippled by a shortage of spare parts. [2] The scandal relates to illegal kickbacks paid in a US$1.4-billion deal between the Swedish arms manufacturer Bofors with the government of India for the sale of 410 field howitzer guns, and a supply contract almost twice that amount. Quattrocchi, who had fled from here on July 29-30, 1993, never appeared before any court in India to face prosecution. New Delhi: The Bofors scandal is an example of a genuine case being sabotaged by a government run by a party that has a lot to hide, says former CBI chief R K Raghavan, placing the “guilt” of the case not succeeding in court on those that controlled the agency in the 1990s and in 2004-2014. This practice was made illegal by Rajiv Gandhi in 1985 as it led to large kickbacks being paid in defence deals, especially those related to aircraft and ships. Justice R S Sodhi (since retired) of the Delhi High Court on May 31, 2005, had quashed the CBI case in the Bofors pay-off scam. The broadcast claimed that Bofors had bribed several Indian politicians to get 155mm howitzers deal. The two accounts, containing €3 million and $1 million, had been frozen. The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress (Congress party) politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments who were accused of receiving kickbacks from Bofors AB, a bank … The Bofors scandal was a major weapons-contract political scandal that occurred between India and Sweden during the 1980s and 1990s, initiated by Indian National Congress politicians and implicating the Indian prime minister, Rajiv Gandhi, and several other members of the Indian and Swedish governments who were accused of receiving kickbacks from Bofors AB, a bank principally financed by the Wallenberg family's Skandinaviska Enskilda Banken,[1] for winning a bid to supply to India their 155 mm field howitzer. Madhavsinh Solanki never opened his mouth on the Bofors scandal. CBI has been criticised by experts, social workers, political parties and people at large for the manner in which it has handled this case. The scandal rocked the Rajiv Gandhi-led government in the late 1980s. [15], Meanwhile, the central government changed and Indian National Congress came to power after 2004 Lok Sabha elections. [2] Quattrocchi was reportedly close to the family of Rajiv Gandhi and emerged as a powerful broker in the 1980s between big businesses and the Indian government. … Bofors deal turned into a huge scandal after Swedish Radio claimed bribes were paid for it. [13] In second half of 2001, Win Chadha and S. K. Bhatnagar died. [3], On 16 April 1987, a Swedish radio station broke out a story based on a whistleblower in the Swedish police, alleging that the reputed Swedish artillery manufacturer Bofors had paid kickbacks to people in several countries, including Sweden and India, to secure a ₹15 billion (equivalent to ₹160 billion or US$2.3 billion in 2019) contract. Finally, withdrawal of its case against Quattrocchi. The scale of the corruption was far worse than any that Sweden and India had seen before and directly led to the defeat of Gandhi's ruling Indian National Congress party in the November 1989 general elections. Rajiv Gandhi government lost 1989 polls but Bofors guns won Kargil war 10 years later. [5] The Swedish company paid ₹640 million (US$9.0 million) in kickbacks to top Indian politicians and key defence officials. Bofors company: Firstly 'Bofors' is a Swedish arms manufacturing company. [17] In December 2005, Mr B. Daat, the Additional Solicitor General of India, acting on behalf of the Indian Government and the CBI, requested the British Government that two British bank accounts of Quattrocchi be unfrozen on the grounds of insufficient evidence to link these accounts to the Bofors payoff. The Bofors scandal is supposed to be stamping on the Indian Political corruption. On 16 January, the Indian Supreme Court directed the Indian government to ensure that Ottavio Quattrocchi did not withdraw money from the two bank accounts in London. [30] This led to high levels of corruption, and payments being made to politicians, bureaucrats and defence personnel to influence decisions. Bofors scandal. In May 1987, a broadcast by a Swedish radio station revealed that bribes of ₹600 million (equivalent to ₹6.6 billion or US$92 million in 2019) had been paid by Bofors to Indian politicians, members of the Congress party and bureaucrats. Explore more on Bofors Scandal. In January 2006 it was discovered that the CBI had quietly unfrozen bank accounts belonging to Italian businessman Ottavio Quattrocchi, one of those accused in the 1986 Bofors scandal which tainted the government of Rajiv Gandhi. The other accused persons who  died were Bhatnagar, Chadda and Ardbo. The Bofors Scandal. Bofors scandal. The scandal is all about when the Indian Defense Ministry had to buy Howitzers for its army's artillery units in March 1986 from AB Bofors, Swedish manufacturer which was worth Rs.1,500 crores ($285 million). During a visit to Switzerland in 1992, to attend the World Economic Conference, Solanki allegedly met the then Swiss foreign minister Rene Felber and sought assistance in the Bofors scam. The Bofors scandal was a major political scandal that occurred between Sweden and India during the 1980s and 1990s, initiated by Congress politicians and implicating the Indian prime minister, Rajiv Gandhi and several other members of the Swedish and Indian governments who were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer. However, his passport was impounded and he was not allowed to leave the country. It was the biggest arms deal ever in Sweden, and money marked for development projects was diverted to secure this contract at any cost. The Interpol, at the request of the CBI, has a long-standing red corner notice to arrest Quattrocchi. The Bofors Scandal. 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[2] While the case was being investigated, Rajiv Gandhi was assassinated for unrelated reasons by the LTTE. he was the one who changed the Iron and Steel company to the Canon manufacturing company. Quattrocchi was released by Argentinian police. Later the articles were published in The Indian Express and The Statesman when The Hindu stopped publishing stories about the Bofors scandal under immense government pressure and Chitra Subramaniam moved to the two newspapers. [2] In 1997, the Swiss banks released some 500 documents after years of legal battle. In an interview with her, published in The Hoot in April 2012 on the 25th anniversary of the revelations,[8] Sten Lindstrom, former chief of Swedish police, discussed why he leaked the documents to her and the role of whistle-blowers in a democracy. It was Madhavan who investigated some of the sensational cases in the country such as the Bofors scandal and Bhopal Gas tragedy. 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