Author: Vidyanand Roy, Sri Krishna Jubilee Law College, Muzaffarpur, Bihar
ABSTRACT
The AugustaWestLand eggbeater fiddle, also known as the VVIP eggbeater fiddle, involves contended backhanders paid to the mediators and politicians to secure a deal for the purchase of 12 AugustaWestland copters by the Indian government. The reproach came to light in 2012 and led to the cancellation of the deal in 2014. This deal was executed by the Congress- led UPA government in February 2010 with AugustaWestland, a UK- grounded copter manufacturing company. The contract was to buy 12 copters for the Indian Air Force and the total cost for the purchase was rupees 3,600 crore. This is also one of the important fiddle case of India.
FACT OF THE CASE
India linked a contract for the purchase of 12 AugustaWestland AW101 copters in February 2010 for the communication squadron of Indian Air Force to carry the President, pm and other VVIPs.
Contestation over the contract came to light on 12 February 2013 with the arrest of Giuseppe Oris, the CEO of Finmeccanica, AugustaWestland’s parent company by Italian authorities; the following day Indian Defence Minister A.K. Antony ordered a inquiry into the contract.
Several Indian politicians and military officers have been indicted of accepting backhanders from AugustaWestland in order to win the 36 billion (US $ 530 million) Indian contract for the force of 12 AugustaWestland AW101 copters are intended to perform VVIP.
In the time 2000 AugustaWestland was formed by a junction between Augusta (Finmeccanica’s subsidary). The specialization of Augusta was in manufacturing marketable copters and West- land was the only company that manufactured the UK’S military copters. These companies developed EH-101, a military cum civil eggbeater in between Europe’s connection phase of the defence and aerospace assiduity. The motive of this junction was to produce new product that could be used for both military and civil purposes along with impacting each other geographically.
The part of the also PM Manmohan Singh, UPA speaker Sonia Gandhi, former Defence Minister AK Antony and former IAF chief SP Tyagi in this big defence contestation was put to question.
Antony, India’s former Defence Minister on 25th March 2013, caught on the allegations regarding corruption and stated, “yes, corruption has taken place in the eggbeater deal and backhanders have been taken”.
MAIN PLAYERS IN THE DEAL
Tyagi, former Air Chief Marshal, on 9th December 2016, Tyagi was arrested in connection with the case. It was contended by the CBI that the suggestion to reduce the functional ceiling of the copter to 4500m from the height of 600m was given by Tyagi which brought AugustaWestland in the race.
It has been contended that the changes were explosively opposed by the IAF, but other Tyagi came the chief, he made these recommendations.
Christian Michel he is among the three mediators, the other two were Carlos Gerosa and Guido Haschke, AugustaWestland had allegedly hired them to swing the deal by impacting the officers in favour of the company. For this purpose, Michael had entered about 42.27 million euros, as contended by the CBI.
The companies of Michel and endorse Gautam Khitan had allegedly routed the backhanders through layered deals in the form of multiple contracts to conceal them.
Julie Dosca and Sandeep Tyagi they’re the three brothers of SP Tyagi who were involved with directly entering the fix plutocrat that was routed through the company of Christian Michel that’s Gufic Trading and also from the IDS India and Aeromatrix, that are Chandigarh grounded companies.
CEO of Aeromatrix- Parveen Bakshi Aeromatrix is an Indian establishment which provides engineering and design services to Finmeccanica. The payments were made for the work that was routed through Aeromatrix that explains how Bakshi had a major part in the fiddle.
Advocate Gautam Khaitan has been recognised as one of the main players who was involved in bringing the fix plutocrat to India and paying latterly to the people involved Khaitan along with the adjunct Airhant Jain was present at the Board of Directors at Aeromatrix.
Carlo Gerosa and Guide Haschke, they both were direct recipients of the fix plutocrat that was being entered from AugustaWestland and interacted with Tyagi sisters for the eggbeater deal. They were present in Aeromatrix on the Board of Directors along with Gautam Khaitan and Airhant Jain had latterly abnegated from the Board.
A.K. Anthony the eggbeater deal was inked under Anthony’s watch in the time 2010, after originally denying he was forced to admit that there was corruption. Anthony now has to explain a lot of effects as to how specialised specifications were altered and the rules broken by the government by placing an order with AugustWestland, which was a trading company and not officially a manufacturing company. Sonia Gandhi and Ahmed Patel the Italian court in its judgement mentioned that one of the mediators had mentioned the name of Sonia Gandhi and her political clerk Ahmed Patel as they were the ‘driving force’ behind the deal attributing to the fact that the deal had their involvement too.
DISQUISITION
After a huge contestaion and allegation of corruption, Defence Minister A.K. Anthony, on 12 February ordered an investigation by the CBI.
CBI registered a primary Enquiry against 11 persons including the former Air Force Chief Marshal S.P. Tyagi, and his relatives besides four companies.
In 2013, billionaire Indian arms dealer Abhishek Verma and his Romanian born woman Anca Neacsu were named suspects in this reproach. Abhishek had played the part of a mediator in the deal and had connived with the politician in securing CCS concurrence from the Cabinet Committee.
Part of the backhanders from AugustWestland was transferred to Abhishek’s accounts in Mauritius, to Bermuda accounts of Atlas Group Ltd and the other part was diverted to his woman’s frontal company in New York Ganton Limited. These finances are suspected to have been transferred to Indian politicians who were heirs in this reproach.
CANCELLATION OF THE CONTRACT BY THE INDIAN GOVERNMENT
India cancelled the 3600 crore rupees deal with the AugustaWestland in January 2014, the government canceled the contract “ on grounds of breach of the pre contract” integrity pact and the agreement by AWIL. The contract was firmed in February 2013 after allegations surfaced that rupees 3600 crore was paid as a fix.
CBI PROBE
The CBI approached Union Law Ministry to record statements of MR. Narayanan and B.V. Wanchoo in January 2014, M.K. Narayanan and B.V. Wanchoo in January were West Bengal and Goa Governor’s independently at the time of CBI’S request. Their statements were considered vital as they were National Security Adviser and SPG chief at the time of the signing of the contract with AugustaWestland. Their views were also considered before the Indian Government signed the contract with AugustaWestland, still, Kapil Sibal’s Union Law Ministry stonewalled the CBI by rejecting CBI’S request to examine them under the usual reason of impunity. “The CBI, thus, approached President Pranab Mukherjee to seek authorization to examine ex NSA and ex SPG M.K. Narayanan and B.V. Wanchoo were requested by CBI latterly in June and July 2014 independently.
RECOVERY OF BANK GUARANTEE
After the cancellation of the contract, India cached over 250 crore made by AugustaWestland as a banks in January. Independently, India requested the Italian Government to recoup the bank guarantee quantum made by the establishment in Italian banks which was further than 275 million. On 17th March 2014, a request made by the India was rejected by an Italian court. Still, the appellate court in Milan reversed the lower court’s judgement and upheld 1818 crore, taking the total quantum of around 1620 crore it has paid to AugustaWestland.
DISQUISTION IN THE ITALIAN COURT
The Italian court, probing the case in October 2014, acquitted ek-IAF Chief S.P. Tyagi, of all corruption charges. It has also acquitted the former Finmeccanica CEO Giuseppe Oris and former AugustaWestland head Bruno Spagnolini of “charges of transnational corruption”. The court still, condemned and ruilings them to two times in captivity on the lower change of “false invoicing” in the case. On 8th April 2016, Milan Court of Appeal, in a 225 page judgement, capsized the lower court verdict and doomed Giuseppe Oris to four time imprisonment.
DISQUISITION IN THE INDIAN COURT
The VVIP eggbeater case is still going on in the court since 2016. On 18th March, 2024 petition was filed by the British Arms Counsultant Mr Christian Michel under Article 32 to seek bail, but the apex court observed that the doctrine of speciality plea as raised by the accused in this scam had been sufficiently dealt with in the previous order of the court declining his bail application.
CONCLUSION
It has been proved in the court of law that fix was involved, rules were broken and bent to suit AugustaWestland, UPA Ministers along with mediators, soldiers and functionaries were involved in this meaa fiddle. Indian agencies are gathering substantiation from foreign countries and all other sources. It’s a specialized and time consuming process. The current focus of probing agencies is to find the substantiation to jut the fix takers. The current government of NDA is happily maximizing the political benefits and erecting farther pressure on Congress due to the exposure of swindles one after another.
FAQ
In which time the Augustawestland deal was inked?
The Congress-led UPA government had if February 2010 inked a contract with AugustaWestland, a UK- grounded Helicopter manufacturing company.
What was the total cost of contract?
The contract was to buy 12 AW101 copters for the Indian Air Force for rupees 3600 crore.
What was AugustaWestland?
Augustawestland was an Anglo-Italian helicopter design and manufacturing company which was a wholly owned subsidiary of Finmeccanica. It was established in July 2000 as an Anglo-Italian multinational company, when Finmeccanica and GKN merged their respective helicopter subsidiaries to form AugustaWestland with each holding a 50 percentage of share.
