The Evening Wrap: CBI books Rolls Royce, others in Hawk aircraft deal

The CBI has registered a case against the United Kingdom-based British Aerospace Systems, Rolls Royce Plc, its then director Tim Johns, two alleged middlemen, Sudhir Choudhrie and his son Bhanu Choudhrie, and unknown Indian public servants, for alleged corruption during 2003-2012 in the procurement of Hawk aircraft. The agency had initiated an inquiry on December 15, 2016 against Rolls Royce plc, Sudhir Choudhrie, unknown officials of the Defence Ministry and others. It allegedly revealed that unknown officials conspired with Jones and others to cheat the Government of India in connection with the aircraft supply by Rolls Royce and its associate group companies, including Rolls Royce Turbomeca Limited, the First Information Report (FIR) said. The suspect public servants approved and procured 24 Hawk 115 Advance Jet Trainer aircraft for GBP 734.21 million, besides permitting licensed manufacturing of 42 additional aircraft by Hindustan Aeronautics Limited (HAL) against the materials supplied by the manufacturer for an additional amount of GBP 308.247 million, and payment of GBP 7.50 million towards the manufacturer’s licence fee. This was done allegedly in lieu of bribes, commissions and kickbacks paid by the manufacturer and its officers to the intermediaries, in violation of the terms and conditions of the contracts in question. The inquiry revealed that in 2008-10, the accused persons also approved licensed manufacturing of 57 more Hawk aircraft by the HAL for ₹9,502.68 crore under a separate agreement with BAE Systems (Operations) Limited, a BAES Group entity. It is alleged that the Income Tax Department had seized vital documents related to the suspect transactions with intermediaries/middlemen from premises of Rolls Royce India Limited during a survey in 2006-07. However, the accused persons caused disappearance/removal/destruction of the papers to evade investigation by the Indian agencies into the alleged bungling in the deal. As it turned down, the Cabinet Committee on Security (CCS) of the Defence Ministry had on September 3, 2003 approved procurement of 66 Hawk 115 aircraft and the signing of an inter-government agreement between India and the U.K. for long-term product support. The Memorandum of Understanding was signed on March 19, 2004. Shortly thereafter, two contracts dated March 26, 2004 for direct supply of 24 Hawk aircraft and transfer of technology for 42 others to be manufactured by HAL were signed. They prohibited use of undue influence and middlemen/agents. In January 2008, the HAL requested the Defence Ministry for an approval to enter into an agreement for licensed manufacturing of 57 additional Hawk aircraft. An agreement dated July 23, 2010 was signed for the same. HAL placed an order on Rolls Royce/BAE Systems in 2010, which also contained a clause prohibiting use of any agent or third party. The aircraft were delivered to the Indian Air Force between March 2013 and July 2016. Meanwhile, in 2012, media reports alleging corruption in the operation of Rolls Royce’s civil business surfaced, which led to a probe by the Serious Fraud Office (SFO), London. A statement of fact was prepared by Rolls Royce wherein it disclosed its corrupt payments related to the transactions with countries like Indonesia, Thailand, China, Malaysia and India. A deferred prosecution agreement was reached between the company and the SFO. On that agreement, the Crown Court delivered a judgment dated July 17, 2017, which revealed concealment of the role of intermediaries in the defence business in India between 2005 and 2009 despite the “Integrity Pact” prohibition on employing intermediaries. The court order mentioned the payment of GBP 1 million by Rolls Royce to an intermediary for increase of licence fee from GBP 4 to 7.50 million. The statement of fact mentioned that GBP 1.85 million was paid to the same person to retrieve the list of intermediaries seized by the Income Tax Department on January 9, 2006, prevent termination of the contracts and a CBI probe. I-T officials were bribed, it is suspected. Besides, it is alleged that GBP 100 million was transferred by Russian arms companies into a Swiss bank account no.120467 of Portsmouth, a company associated with Sudhir Choudhrie, with regard to defence deals with Russia for the purchase of MiG fighter aircraft. From this amount, the firms in the name of the Choudhrie family — Belinea Services Limited, Cottage Consultant Limited and Carter Consultants Inc — received GBP 39.20 million, GBP 32.8 million, and GBP 23 million, respectively, in 2007-2008, the FIR said. Wrestlers yet to meet after release from police detention, will soon contemplate next move Released late last night from police detention, the wrestlers are still contemplating their next move even as they continued to get support from the sporting fraternity after police action against top grapplers was unequivocally condemned by political and sports personalities. Vinesh Phogat, Bajrang Punia, Sangeeta Phogat, Sakshi Malik and several others were detained by Delhi police on Sunday (May 28) when they attempted to move towards the new Parliament building for women’s ‘Mahapanchayat’. Disturbing videos of police action against elite wrestlers emerged from Jantar Mantar, which will now remain out of bound for them. The wrestlers are demanding the arrest of WFI chief Brij Bhushan Sharan Singh. “We will let you know soon what our next move will be. We are still gathering ourselves. I was released at 11pm and Bajrang was released around mid-night. We are yet to meet at a common place. We will soon discuss it,” said one of the protesting wrestlers. The police, which has filed FIRs against the trio of Bajrang, Vinesh, Sakshi and several others for violation of law and order, has made it clear that they will not allow the wrestlers to return to Jantar Mantar. Meanwhile, India’s first individual Olympic gold medallist Abhinav Bindra denounced the police action against the top wrestlers, saying the treatment meted out to grapplers left him “sleepless” and he was “haunted” by the horrifying images. Unprecedented scenes of police dragging Olympic and world championships medal-winning players, including Sakshi, Vinesh, Punia and Sangeeta Phogat, were witnessed when the wrestlers and their supporters breached the security cordon ahead of their march towards the new Parliament building. “Last night was sleepless, haunted by the horrifying images of my fellow Indian wrestlers protesting,” tweeted Bindra, even as India’s most successful footballer Sunil Chhetri and former India all-rounder too criticised the action against the wrestlers. “It’s high time we establish independent safeguarding measures across sporting organisations. We must ensure that if such situations arise, they are dealt with utmost sensitivity and respect. Every athlete deserves a safe and empowering environment,” added Bindra, the 2008 Beijing Olympics gold medallist in air rifle. India football captain Sunil Chhetri, tweeted, “Why does it have to come down to our wrestlers being dragged around without any consideration? This isn’t the way to treat anyone. I really hope this whole situation is assessed the way it should be.” Former India all-rounder Irfan Pathan said a solution to the issue should be found immediately. “I’m so sad to see the visuals of our Athletes…. Please solve this ASAP,” Pathan tweeted. Protesting wrestlers ignored police warning that creating a ruckus during the opening of the new Parliament building would “harm national prestige” and will not be tolerated but they tried to march towards it, according to an FIR registered against top grapplers. The FIR states at least 15 security personnel, a majority of them policewomen, were injured during the scuffle on Sunday between them and the wrestlers who also ignored police request to continue their protest at Jantar Mantar. Sakshi Malik, an Olympic medallist, said in tweet after being detained on Sunday that “in this country, there will be no dictatorship but there will be satyagraha held by women wrestlers”. Meanwhile, a day after clearing the sit-in site of the protesting wrestlers, the Delhi Police said the wrestlers will be allowed to demonstrate at a suitable place in the city other than Jantar Mantar. “The demonstration by the wrestlers was going on smoothly at the notified place of Jantar Mantar. On May 28, the protestors flouted the law, ignoring our repeated requests. Hence, we cleared the site and ended the dharna,” Deputy Commissioner of Police (New Delhi) tweeted in Hindi. “If the wrestlers will apply for permission to stage their sit-in again in the future, they will be allowed to do so at any suitable notified place other than Jantar Mantar,” it said. Delhi services Ordinance row: Congress leaders from Delhi, Punjab meet Kharge, Rahul; sources say party may not support AAP Congress leaders from Delhi and Punjab met the party leadership in New Delhi in separate meetings on Monday, and asked them not to support the Aam Aadmi Party on the Delhi services Ordinance issue, sources said. Congress president Mallikarjun Kharge had convened a meeting of leaders from both States on seeking their opinion on the matter. Former Congress president Rahul Gandhi was also present during the meetings. The sources said a majority of the leaders told the leadership to have no truck with Arvind Kejriwal, calling him a ‘B-team’ of the BJP and claiming he harmed the Congress’ interests not only in Delhi and Punjab but other States as well. Sources said the meeting comes in the wake of Kejriwal requesting a meeting with Kharge and Gandhi to seek their support against an Ordinance brought by the Centre which effectively nullified a Supreme Court order that gave to the Delhi government the power to transfer bureaucrats in the city. Kharge has reportedly conveyed to Kejriwal he will take a call on the matter after having a word with State party leaders. The sources said the Congress leadership will also meet party leaders from other States before deciding its position. Punjab Congress president Amrinder Singh Raja Warring told reporters after the meeting they have put across their views before the party high command and left the final decision to it. “All the leaders have said the party high command will decide and we have left it to party chief Mallikarjun Kharge to take the final decision,” Raja Warring told reporters after the meeting. Former party chief Navjot Singh Sidhu said what transpired during the meeting was a secret and only the Congress chief or Rahul Gandhi would divulge the details. He, however, said India’s Constitution is a sacred ‘granth’ and he took inspiration from it. “But, I can say emphatically that the values of the Constitution are at its lowest ebb,” he said, citing instances where the Centre “trampled upon” the Constitution. 16-year-old stabbed to death by boyfriend in Delhi, entire incident caught on CCTV A 16-year-old girl was allegedly attacked with stones and was stabbed to death by her boyfriend in northwest Delhi’s Shahbad Dairy area, police said on May 29. The entire incident was caught on CCTV camera, where the 20-year-old accused was seen attacking the woman, and nobody tried to stop him. Sahil, a fridge-AC repairing mechanic, has been arrested from Bulandshahr in Uttar Pradesh, the Delhi Police said. According to the police, an informer told the local beat staff regarding a girl being murdered in their colony in Shahbad Dairy. Police staff reached the spot and later found the girl’s body on the street. An officer said the deceased was identified as a 16-year-old girl, a resident of JJ Colony in Shahbad Dairy. “It was revealed that she was coming from the street, when suddenly, a boy, identified as Sahil, intercepted her and stabbed her multiple times,” DCP (outer north) Ravi Kumar Singh said. He said the deceased and Sahil were in a relationship, but on Sunday, they had a quarrel. “On Monday, the deceased was planning to attend her friend, Neetu’s son’s birthday. The alleged intercepted her and stabbed her multiple times and hit her with a stone,” DCP added. An FIR has been registered at Shahbad Dairy police station based on the complaint filed by the deceased’s father, DCP added. In Brief: Terror funding case | Delhi HC issues notice to Yasin Malik on NIA plea seeking his death penalty The Delhi High Court on Monday (May 29) issued a notice to separatist leader Yasin Malik, who is presently serving a life term, on a plea by the National Investigation Agency seeking death penalty for him in a terror funding case. A Bench of Justices Siddharth Mridul and Talwant Singh also issued warrants for production of Malik before it on August 9. Solicitor General Tushar Mehta, who appeared on behalf of the National Investigation Agency (NIA), argued that the accused indulged in terrorist and secessionist activities and should be awarded death penalty by treating the matter as a “rarest of rare” case. “In view of the ground that Yasin Malik, sole respondent in this appeal, has inter alia pleaded guilty to a charge under section 121 IPC which provides for an alternate death sentence, we issue notice to him... to be served through the jail superintendent,” the court ordered. ISRO’s GSLV-F12 successfully places navigation satellite NVS-01 into intended orbit The Indian Space Research Organisation (ISRO) on May 29 successfully placed NVS-01 — a second generation navigation satellite — into the intended Geosynchronous Transfer Orbit (GTO), using a Geosynchronous Satellite Launch Vehicle (GSLV) rocket with a cryogenic upper stage to do the job. The GSLV-F12/NVS-01 mission was launched from the second launch pad at the Satish Dhawan Space Centre SHAR, Sriharikota. At the end of a 27.5 hour countdown, the 51.7 metre tall, 3-stage Geosynchronous Satellite Launch Vehicle lifted off at a prefixed time of 10.42 a.m. This was GSLV’s 15th flight. Evening Wrap will return tomorrow. [logo] The Evening Wrap 29 May 2023 [The Hindu logo] Welcome to the Evening Wrap newsletter, your guide to the day’s biggest stories with concise analysis from The Hindu. [[Arrow]Open in browser]( [[Mail icon]More newsletters]( Hawk aircraft deal: CBI books Rolls Royce and others on graft charge [The CBI has registered a case against the United Kingdom-based British Aerospace Systems, Rolls Royce Plc]( its then director Tim Johns, two alleged middlemen, Sudhir Choudhrie and his son Bhanu Choudhrie, and unknown Indian public servants, for alleged corruption during 2003-2012 in the procurement of Hawk aircraft. The agency had initiated an inquiry on December 15, 2016 against Rolls Royce plc, Sudhir Choudhrie, unknown officials of the Defence Ministry and others. It allegedly revealed that unknown officials conspired with Jones and others to cheat the Government of India in connection with the aircraft supply by Rolls Royce and its associate group companies, including Rolls Royce Turbomeca Limited, the First Information Report (FIR) said. The suspect public servants approved and procured 24 Hawk 115 Advance Jet Trainer aircraft for GBP 734.21 million, besides permitting licensed manufacturing of 42 additional aircraft by Hindustan Aeronautics Limited (HAL) against the materials supplied by the manufacturer for an additional amount of GBP 308.247 million, and payment of GBP 7.50 million towards the manufacturer’s licence fee. This was done allegedly in lieu of bribes, commissions and kickbacks paid by the manufacturer and its officers to the intermediaries, in violation of the terms and conditions of the contracts in question. The inquiry revealed that in 2008-10, the accused persons also approved licensed manufacturing of 57 more Hawk aircraft by the HAL for ₹9,502.68 crore under a separate agreement with BAE Systems (Operations) Limited, a BAES Group entity. It is alleged that the Income Tax Department had seized vital documents related to the suspect transactions with intermediaries/middlemen from premises of Rolls Royce India Limited during a survey in 2006-07. However, the accused persons caused disappearance/removal/destruction of the papers to evade investigation by the Indian agencies into the alleged bungling in the deal. As it turned down, the Cabinet Committee on Security (CCS) of the Defence Ministry had on September 3, 2003 approved procurement of 66 Hawk 115 aircraft and the signing of an inter-government agreement between India and the U.K. for long-term product support. The Memorandum of Understanding was signed on March 19, 2004. Shortly thereafter, two contracts dated March 26, 2004 for direct supply of 24 Hawk aircraft and transfer of technology for 42 others to be manufactured by HAL were signed. They prohibited use of undue influence and middlemen/agents. In January 2008, the HAL requested the Defence Ministry for an approval to enter into an agreement for licensed manufacturing of 57 additional Hawk aircraft. An agreement dated July 23, 2010 was signed for the same. HAL placed an order on Rolls Royce/BAE Systems in 2010, which also contained a clause prohibiting use of any agent or third party. The aircraft were delivered to the Indian Air Force between March 2013 and July 2016. Meanwhile, in 2012, media reports alleging corruption in the operation of Rolls Royce’s civil business surfaced, which led to a probe by the Serious Fraud Office (SFO), London. A statement of fact was prepared by Rolls Royce wherein it disclosed its corrupt payments related to the transactions with countries like Indonesia, Thailand, China, Malaysia and India. A deferred prosecution agreement was reached between the company and the SFO. On that agreement, the Crown Court delivered a judgment dated July 17, 2017, which revealed concealment of the role of intermediaries in the defence business in India between 2005 and 2009 despite the “Integrity Pact” prohibition on employing intermediaries. The court order mentioned the payment of GBP 1 million by Rolls Royce to an intermediary for increase of licence fee from GBP 4 to 7.50 million. The statement of fact mentioned that GBP 1.85 million was paid to the same person to retrieve the list of intermediaries seized by the Income Tax Department on January 9, 2006, prevent termination of the contracts and a CBI probe. I-T officials were bribed, it is suspected. Besides, it is alleged that GBP 100 million was transferred by Russian arms companies into a Swiss bank account no.120467 of Portsmouth, a company associated with Sudhir Choudhrie, with regard to defence deals with Russia for the purchase of MiG fighter aircraft. From this amount, the firms in the name of the Choudhrie family — Belinea Services Limited, Cottage Consultant Limited and Carter Consultants Inc — received GBP 39.20 million, GBP 32.8 million, and GBP 23 million, respectively, in 2007-2008, the FIR said. Wrestlers yet to meet after release from police detention, will soon contemplate next move [Released late last night from police detention, the wrestlers are still contemplating their next move even as they continued to get support from the sporting fraternity]( after police action against top grapplers was unequivocally condemned by political and sports personalities. Vinesh Phogat, Bajrang Punia, Sangeeta Phogat, Sakshi Malik and several others were detained by Delhi police on Sunday (May 28) when they attempted to move towards the new Parliament building for women’s ‘Mahapanchayat’. Disturbing videos of police action against elite wrestlers emerged from Jantar Mantar, which will now remain out of bound for them. The wrestlers are demanding the arrest of WFI chief Brij Bhushan Sharan Singh. “We will let you know soon what our next move will be. We are still gathering ourselves. I was released at 11pm and Bajrang was released around mid-night. We are yet to meet at a common place. We will soon discuss it,” said one of the protesting wrestlers. The police, which has filed FIRs against the trio of Bajrang, Vinesh, Sakshi and several others for violation of law and order, has made it clear that they will not allow the wrestlers to return to Jantar Mantar. Meanwhile, India’s first individual Olympic gold medallist Abhinav Bindra denounced the police action against the top wrestlers, saying the treatment meted out to grapplers left him “sleepless” and he was “haunted” by the horrifying images. Unprecedented scenes of police dragging Olympic and world championships medal-winning players, including Sakshi, Vinesh, Punia and Sangeeta Phogat, were witnessed when the wrestlers and their supporters breached the security cordon ahead of their march towards the new Parliament building. “Last night was sleepless, haunted by the horrifying images of my fellow Indian wrestlers protesting,” tweeted Bindra, even as India’s most successful footballer Sunil Chhetri and former India all-rounder too criticised the action against the wrestlers. “It’s high time we establish independent safeguarding measures across sporting organisations. We must ensure that if such situations arise, they are dealt with utmost sensitivity and respect. Every athlete deserves a safe and empowering environment,” added Bindra, the 2008 Beijing Olympics gold medallist in air rifle. India football captain Sunil Chhetri, tweeted, “Why does it have to come down to our wrestlers being dragged around without any consideration? This isn’t the way to treat anyone. I really hope this whole situation is assessed the way it should be.” Former India all-rounder Irfan Pathan said a solution to the issue should be found immediately. “I’m so sad to see the visuals of our Athletes…. Please solve this ASAP,” Pathan tweeted. Protesting wrestlers ignored police warning that creating a ruckus during the opening of the new Parliament building would “harm national prestige” and will not be tolerated but they tried to march towards it, according to an FIR registered against top grapplers. The FIR states at least 15 security personnel, a majority of them policewomen, were injured during the scuffle on Sunday between them and the wrestlers who also ignored police request to continue their protest at Jantar Mantar. Sakshi Malik, an Olympic medallist, said in tweet after being detained on Sunday that “in this country, there will be no dictatorship but there will be satyagraha held by women wrestlers”. Meanwhile, a day after clearing the sit-in site of the protesting wrestlers, the Delhi Police said the wrestlers will be allowed to demonstrate at a suitable place in the city other than Jantar Mantar. “The demonstration by the wrestlers was going on smoothly at the notified place of Jantar Mantar. On May 28, the protestors flouted the law, ignoring our repeated requests. Hence, we cleared the site and ended the dharna,” Deputy Commissioner of Police (New Delhi) tweeted in Hindi. “If the wrestlers will apply for permission to stage their sit-in again in the future, they will be allowed to do so at any suitable notified place other than Jantar Mantar,” it said. Delhi services Ordinance row: Congress leaders from Delhi, Punjab meet Kharge, Rahul; sources say party may not support AAP [Congress leaders from Delhi and Punjab met the party leadership in New Delhi in separate meetings]( on Monday, and asked them not to support the Aam Aadmi Party on the Delhi services Ordinance issue, sources said. Congress president Mallikarjun Kharge had convened a meeting of leaders from both States on seeking their opinion on the matter. Former Congress president Rahul Gandhi was also present during the meetings. The sources said a majority of the leaders told the leadership to have no truck with Arvind Kejriwal, calling him a ‘B-team’ of the BJP and claiming he harmed the Congress’ interests not only in Delhi and Punjab but other States as well. Sources said the meeting comes in the wake of Kejriwal requesting a meeting with Kharge and Gandhi to seek their support against an Ordinance brought by the Centre which effectively nullified a Supreme Court order that gave to the Delhi government the power to transfer bureaucrats in the city. Kharge has reportedly conveyed to Kejriwal he will take a call on the matter after having a word with State party leaders. The sources said the Congress leadership will also meet party leaders from other States before deciding its position. Punjab Congress president Amrinder Singh Raja Warring told reporters after the meeting they have put across their views before the party high command and left the final decision to it. “All the leaders have said the party high command will decide and we have left it to party chief Mallikarjun Kharge to take the final decision,” Raja Warring told reporters after the meeting. Former party chief Navjot Singh Sidhu said what transpired during the meeting was a secret and only the Congress chief or Rahul Gandhi would divulge the details. He, however, said India’s Constitution is a sacred ‘granth’ and he took inspiration from it. “But, I can say emphatically that the values of the Constitution are at its lowest ebb,” he said, citing instances where the Centre “trampled upon” the Constitution. 16-year-old stabbed to death by boyfriend in Delhi, entire incident caught on CCTV [A 16-year-old girl was allegedly attacked with stones and was stabbed to death by her boyfriend in northwest Delhi’s Shahbad Dairy area]( police said on May 29. The entire incident was caught on CCTV camera, where the 20-year-old accused was seen attacking the woman, and nobody tried to stop him. Sahil, a fridge-AC repairing mechanic, has been arrested from Bulandshahr in Uttar Pradesh, the Delhi Police said. According to the police, an informer told the local beat staff regarding a girl being murdered in their colony in Shahbad Dairy. Police staff reached the spot and later found the girl’s body on the street. An officer said the deceased was identified as a 16-year-old girl, a resident of JJ Colony in Shahbad Dairy. “It was revealed that she was coming from the street, when suddenly, a boy, identified as Sahil, intercepted her and stabbed her multiple times,” DCP (outer north) Ravi Kumar Singh said. He said the deceased and Sahil were in a relationship, but on Sunday, they had a quarrel. “On Monday, the deceased was planning to attend her friend, Neetu’s son’s birthday. The alleged intercepted her and stabbed her multiple times and hit her with a stone,” DCP added. An FIR has been registered at Shahbad Dairy police station based on the complaint filed by the deceased’s father, DCP added. In Brief: Terror funding case | Delhi HC issues notice to Yasin Malik on NIA plea seeking his death penalty The [Delhi High Court on Monday (May 29) issued a notice to separatist leader Yasin Malik, who is presently serving a life term, on a plea by the National Investigation Agency seeking death penalty for him]( in a terror funding case. A Bench of Justices Siddharth Mridul and Talwant Singh also issued warrants for production of Malik before it on August 9. Solicitor General Tushar Mehta, who appeared on behalf of the National Investigation Agency (NIA), argued that the accused indulged in terrorist and secessionist activities and should be awarded death penalty by treating the matter as a “rarest of rare” case. “In view of the ground that Yasin Malik, sole respondent in this appeal, has inter alia pleaded guilty to a charge under section 121 IPC which provides for an alternate death sentence, we issue notice to him... to be served through the jail superintendent,” the court ordered. ISRO’s GSLV-F12 successfully places navigation satellite NVS-01 into intended orbit The [Indian Space Research Organisation (ISRO) on May 29 successfully placed NVS-01]( a second generation navigation satellite — into the intended Geosynchronous Transfer Orbit (GTO), using a Geosynchronous Satellite Launch Vehicle (GSLV) rocket with a cryogenic upper stage to do the job. The GSLV-F12/NVS-01 mission was launched from the second launch pad at the Satish Dhawan Space Centre SHAR, Sriharikota. At the end of a 27.5 hour countdown, the 51.7 metre tall, 3-stage Geosynchronous Satellite Launch Vehicle lifted off at a prefixed time of 10.42 a.m. This was GSLV’s 15th flight. Evening Wrap will return tomorrow. 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