CBI books Rolls Royce and others in aircraft deal graft case

The Central Bureau of Investigation (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.

Sudhir Choudhrie and his son Bhanu Choudhrie are UK-based businessmen of Indian origin. The Choudhrie family founded C&C Alpha Group, a London-based firm that invests in sectors including healthcare, aviation and hospitality. In 2014, the pair was arrested as part of the UK's Serious Fraud Office (SFO) investigation into concerns of possible bribery and corruption at Rolls-Royce in Asia. Both denied any wrongdoing and the charges against them were later dropped, reported Reuters.

The central 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.