CBI books Rolls-Royce India, others over Hawk aircraft procurement
The Central Bureau of Investigation (CBI) has registered a case against British aerospace company Rolls-Royce India, its director Tim Jones, private individuals Sudhir and Bhanu Choudhrie, and some unidentified public servants, among others, for allegedly cheating the Indian government. The case pertains to the accused public servants allegedly accepting bribes to allow the procurement of 24 Hawk aircraft from Rolls-Royce.
24 Hawk aircraft procured for $906.5 million
The CBI said that the accused public servants approved the procurement of 24 Hawk 115 Advance Jet Trainer (AJT) aircraft for over $906.5 million (around Rs. 7,490 crore). The accused officials also permitted the licensed manufacturing of 42 additional aircraft by Hindustan Aeronautics Limited (HAL) using the material supplied by the manufacturer in lieu of bribes and commissions.
Defence Ministry allowed procurement of 66 Hawk aircraft
In 2003, the Cabinet Committee on Security (CCS) of the Ministry of Defence approved the procurement of 66 Hawk aircraft. In 2004, the Indian and United Kingdom (UK) governments signed a Memorandum of Understanding (MoU) for long-term product support. Days later, two contracts were signed between the Ministry of Defence and BAE Systems/Rolls-Royce for supplying 24 Hawk aircraft and manufacturing 42 others.
Rolls-Royce supplied material worth over $308 million
The CBI further alleged that Rolls-Royce supplied material for manufacturing the aircraft for an additional $308.247 million (Rs. 2,046 crore) while receiving $7.5 million (Rs. 62 crore) as the manufacturer's license fee. After media reports, the UK's Serious Fraud Office (SFO) started a probe in 2012 into allegations that Rolls-Royce engaged in corrupt practices to secure projects in India and other countries.
Rolls-Royce bribed intermediaries, tax officials: UK government probe
Later, the SFO investigation revealed that Rolls-Royce paid a bribe of more than $1.2 million to Indian intermediaries for increasing the license fee from around $5 million to nearly $9.3 million. Rolls-Royce also allegedly bribed tax officials not to probe its tax affairs.
