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Rajiv covered up Bofors deal: court

Rajiv covered up Bofors deal: court

Author: Statesman News Service
Publication: The  Statesman
Date: November 15, 2002

There was a "secret design" by former Prime Minister Rajiv Gandhi and Mr SK Bhatnagar, then defence secretary, to ensure that AB Bofors bagged the multi-crore gun deal by abusing their official position, the special CBI judge observed today. Mr Prem Kumar's order on framing charges in the Bofors case noted that Rajiv Gandhi's post-contract conduct showed that "a massive cover-up operation was launched".

The judge made the scathing remark in a 176-page order pronounced in open court on framing of charges against the three Hinduja brothers and the Swedish gun manufacturer, AB Bofors, on counts of criminal conspiracy, cheating and corruption. The court said that though there was no legal requirement to give a "speaking order," the Bofors case was a "unique case" involving serious allegations of abuse of position by high public servants in a deal having international ramifications.

In course of evaluating the points raised by counsel for the Hindujas and Bofors, the court discussed various aspects of the deal, the role of key functionaries of the government, including Rajiv Gandhi and the Joint Parliamentary Committee that set out to get to the bottom of the scandal.

But JPC's object "seemed to be to quell the political storm at that time and not to arrive at the whole truth. Rather, constitution of the JPC and the manner in which enquiry was conducted and its report seem to be part of the massive cover-up exercise after the exposure of the scam by the media," the court said.

Describing the Bofors scandal as a "case of deep-rooted conspiracy and political pay-offs and bristled with all manner of complexities and complications", Mr Prem Kumar recalled Rajiv Gandhi's statement in the Lok Sabha days after news of the scandal was reported in the Indian media. Gandhi told the Lok Sabha that there were no middlemen involved in the deal and if anyone gave the government any evidence that this was not true, "we will take action and we will see that nobody, however, high up is allowed to go free".

"How encouraging and bold!" the court observed. "As if there is a ring of sincerity and the Prime Minister Rajiv Gandhi is out to find the truth. Rajiv Gandhi was not naïve and impetuous. He pretended to be a maverick. All this was, however, a deliberate posturing and part of a well-conceived and pre-arranged plan to apparently show the non-involvement of middlemen/agents in the deal and to achieve the oblique purpose by direct negotiations on the one hand, and to have secret middlemen on the other".

The order pointed that the move by the then defence secretary to call representatives of the four competing firms and tell them that the government would not allow Indian agents was taken at the instance of Rajiv Gandhi.

"Win Chadha was initially perceived to be a potential rival. His continuance as agent would make it difficult to introduce close confidant of Rajiv Gandhi like Ottavio Quattrocchi and to receive handsome commission. However, later a way out had been found," the order said.

As for claims that Bofors was as good a gun as its competition, Sofma, the court observed that material collected by the CBI suggested that prima facie, "although Sofma was cheaper and better gun and gun system, the contract still went to Bofors".
 


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