Quattrochi, Win Chadha received Bofors kickbacks: I-T Tribunal

Mangalore Today News Network

New Delhi, Jan 01: In a significant development, the Income Tax Appellate Tribunal on Monday nailed Italian businessman Ottavio Quattrocchi and Win Chadha for having received Rs 1,500 crore in kickbacks from M/s AB Bofors in connection with its successful bid to supply 155 mm field howitzer guns to India in 1987.

 

As per the tribunal, India had to pay an excess amount of 242.62 million Swedish kroners for the guns due to the payments made to Quattrocchi and Chadha.

The bribes were mainly paid into the accounts of M/s Colbar Investments Limited Inc and M/s Wetelsen Overseas, controlled by Quattrocchi and his wife Maria.

With regard to other kickbacks, it was routed through M/s AE Services and M/s Svenska for Quattrocchi and Chadha respectively.

Besides, the fact that the middlemen are illegal in defence deals in India, the tribunal observed that Quattrocchi and Chaddha are also guilty of not paying income tax in India.

The tribunal’s report also observed that investigations have revealed Chadha and Quattrocchi had been transferring the funds received from Bofors frequently from one account to another and from one jurisdiction to another to avoid detection and to obliterate the trial of the money.

Importantly, the tribunal’s revelations come just a day ahead of a scheduled hearing by a Delhi court in connection with the Central Bureau of Investigation (CBI) plea seeking to drop criminal proceedings against Ottavio Quattrocchi.

In 1999, CBI had charged former defence secretary SK Bhatnagar, Kuala Lumpur-based Italian businessman Ottavio Quattrocchi, former Bofors chief Martin Ardbo and the company itself in connection with the case.

Quattrocchi, the sole surviving accused in the case after the Delhi High Court had quashed the charges on May 31, 2005, against other accused, has never appeared before any court in the country.

CBI had failed on two occasions in its attempt to get Quattrocchi extradited -- first from Malaysia in 2003 and then from Argentina in 2007.

In 2009, the agency had asked the Interpol to take Quattrocchi’s name off the Red Corner notice list.

The tribunal’s revelations are sure to create a new storm over the controversial defence deal and pose some uncomfortable questions for the Congress party as the deal was struck during Rajiv Gandhi’s prime ministership.