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Chadha may turn approver

Josy Joseph in New Delhi

Win Chadha, an accused in the Bofors scandal who landed in New Delhi this morning, may finally give a thrilling twist to the 13-year investigation, government sources said. The sources indicated that Chadha, who is slated to appear before CBI [Central Bureau of Investigation] Special Judge Ajit Bharihoke on Tuesday, could turn approver, naming Rajiv Gandhi, among others.

But there was no final confirmation on that count, as no CBI officers were available for comment.

But if Chadha does turn approver, it could take the Bofors investigation into a round of thrilling courtroom drama, where the ageing heart patient could unwind the backroom manipulation that preceded the gun deal and put the opposition Congress on the defensive.

Chadha landed in Delhi with the blessings and support of the government, after the court ordered him to appear before it. There has been some understanding between the government and Chadha, sources indicated.

About a month back, Chadha had contacted Batra Hospital, run by close relatives of Congressman Lalit Suri, and requested them to reserve a room for him. On Saturday morning, he landed at Delhi airport and drove straight to the hospital.

The special judge had last month cancelled the non-bailable warrants issued against Chadha and directed him to appear before the court on March 21.

The judge had earlier issued non-bailable warrants against Chadha after he failed to appear before him on February 3 as promised by his counsel, Ritu Singh Mann. She later gave the March 21 appearance undertaking.

Chadha, AB Bofors, the company's former president Martin Ardbo, former Indian defence secretary S K Bhatnagar and Italian businessman Ottavio Quattrocchi are facing trail on charges of corruption in the case. Though the late Rajiv Gandhi has also been named as an accused, his name has not been sent for trial as he is no longer alive.

Chadha and his son Harsh's travel documents were cancelled by the government of India when the two fled the country while the CBI was still interrogating the accused about their role in the Rs 640 million payoff.

While Chadha was Bofors's official agent in India, the CBI's investigation has always focussed more on Quattrocchi. The agency maintains that its "investigation has shown that the families of the then prime minister [Rajiv Gandhi] and Ottavio Quattrocchi were on intimate terms and used to meet frequently". It is still exploring ways of getting him back to India.

The CBI investigation proved that "Quattrocchi was engaged by AB Bofors as its agent contrary to the prohibition imposed by the Government of India and the undertaking contained in a letter of March 10, 1986, for the defence secretary. Because of his proximity to the then prime minister and his family, and the perception generally of bureaucrats and ministers was that Chadha 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 CBI has claimed in its affidavit that it is obvious that the public servants concerned are guilty of offences under Sections 5(2) read with 5(1) (d) of the Prevention of Corruption Act, 1947. The CBI's stand is that prima facie an offence under section 120(B) read with section 420 of the Indian Penal Code is made out by the facts brought out from the material gathered through the investigation.

The fact that the first instalment of the commission -- 3 per cent -- was paid would mean Quattrocchi had been successfully negotiated with the then prime minister, then defence minister (V P Singh) and other public servants concerned to obtain the contract for his principal, the agency said.

The investigation report received from Switzerland disclosed that Bofors had remitted Swedish kroner 50,463,966 (equivalent to $7,343,941.98) on September 3, 1986, from the account with Skandinavika Enskilda Banken, Stockholm, to account number 18051-53 of A E Services Limited at Nordfinanz Bank, Zurich. This account of A E Services Limited was opened only a fortnight ago on August 20 1986 by Myles Tweedale Stott as director.

The investigations further disclosed that, from the above account, $7,123,900 ($7,000,000 paid on September 16, 1986, and $123,900 on September 29, 1986) was transferred to the account of Colbar Investments Limited at the Union Bank of Switzerland, Geneva.

Part of the Colbar money was transferred on August 25, 1988, to Wetelsen Overseas SA at the Union Bank of Switzerland, Geneva. Thereafter, on May 21, 1990, $9,200,000 was transferred from this account to the one of International Investment Development Corporation in Ansbbacher (CI) Limited in St Peter Port, Guernsey (Channel Islands). These accounts of Colbar and Wetelsen were controlled by Quattrocchi and his wife Maria.

Investigations in Guernsey (Channel Islands) also revealed that the money was further channeled to various accounts in Switzerland and Austria within 10 days of its receipt.

The CBI said the investigation has also revealed that, in this deal for 400 155 MM 77-B guns, towed vehicles and ammunition to the Government of India, A B Bofors made huge payments to certain persons through some front companies in an illegal manner. This was done in criminal conspiracy with public servants in India.

Investigations in Guernsey have also revealed that the whole money was channeled to various accounts in Switzerland and Austria within 10 days of its receipt.

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