CBI books Rolls-Royce in aircraft deal corruption case

New Delhi: The CBI has lodged a case against British aerospace company Rolls-Royce, its top executives and two arms dealers of Indian origin in a 2004 trainer aircraft procurement corruption case.

The sources told Defence Watch that the case has been registered against director of Rolls-Royce Tim Jones and businessmen Sudhir Choudhrie and Bhanu Choudhrie for allegedly attempting to cheat the Government of India in the procurement of 24 Hawk 115 Advance Jet Trainers. 

The agency also said unknown public servants abused their official positions as public servants and approved and procured a total number of 24 Hawk 115 Advance Jet Trainer (AJT) aircraft for GBP 734.21 million, besides permitting licence manufacturing of 42 additional aircraft by the Hindustan Aeronautics Limited (HAL) against materials supplied by the said manufacturer for an additional amount of $308.247 million for the said 42 License Manufactured aircraft and $7.5 million towards Manufacturer's Licence Fee, in lieu of huge bribes, commissions and kickbacks paid by the said manufacturer and its officers to intermediaries. 

The investigation revealed that in 2008-10, in furtherance of the criminal conspiracy, the accused also approved the Licence manufacturing of 57 additional Hawk aircraft by HAL for a value of ₹ 9,502.68 crores under a separate agreement with BAE Systems (Operations) Ltd, another entity belonging to the BAES Group, CBI sources added.

The Cabinet Committee on Security (CCS), Ministry of Defence in a meeting held on September 3, 2003, approved the procurement of 66 Hawk 115 Aircraft and the signing of an Inter-Government Agreement between the governments of India and the UK for long-term product support. A Memorandum of Understanding was then signed between the two countries on March 19, 2004.

Shortly thereafter, two related contracts, both dated March 26, 2004, for the supply of 24 HAWK Aircraft by way of direct supply, and materials and transfer of technology for 42 Aircraft to be licence manufactured by HAL, were signed between the Ministry of Defence and BAE Systems/Rolls Royce.

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