The deal was made 4 decades ago, the latest appeal just got over: Supreme Court draws the curtain on Bofors ‘scandal’
Supreme Court Concludes Decades-Long Bofors Case
Bharatmorningnews.com – India's most protracted defense corruption matter has finally reached its conclusion. A Supreme Court bench comprising justices JB Pardiwala and K Vinod Chandran rejected the remaining appeal against the 2005 Delhi High Court decision, which had nullified all criminal actions involving the Hinduja brothers alongside Swedish weapons producer AB Bofors.
The ruling arrived approximately forty years following initial accusations by Swedish Radio concerning kickback payments designed to facilitate the purchase of four hundred howitzers for the Indian military.
Final Appeal Dismissed
Advocate Ajay K Agrawal, who contested the High Court's verdict as a private appellant, was denied additional time by the bench. The justices expressed frustration regarding the prolonged nature of the litigation.
"What is all this about the Hinduja brothers and CBI?" the bench inquired at one juncture.
Upon being reminded that the accused had been cleared in 2005, the court remarked: "All proceedings were quashed. What is this? How many years have passed?"
Agrawal requested four weeks to remove references to two deceased respondents—Srichand P Hinduja and Gopichand P Hinduja—from the party list. The bench declined this request, noting the case had been under consideration since 2018.
Previously, the Supreme Court had rejected the Central Bureau of Investigation's appeal in November 2018, citing an inadequate explanation for a 4,522-day filing delay. With both appeals now concluded, no active challenge persists against the 2005 order.
Origins of the Scandal
The Indian government entered into a ₹1,437 crore agreement with AB Bofors on March 24, 1986, securing four hundred 155mm FH-77B howitzers for military deployment.
Less than fifteen months later, on April 16, 1987, Swedish Radio published allegations claiming Bofors had disbursed illegal commissions to Indian politicians and defense personnel to obtain the contract.
The central figure in these accusations stood at ₹64 crore, supposedly paid as commissions channeled through various foreign intermediaries and shell corporations. This figure originated from documentation compiled by journalist Chitra Subramaniam, utilizing materials supplied by Sten Lindström, who headed the Swedish police investigation unit at the time.
Prime Minister Rajiv Gandhi publicly rejected the accusations, though the controversy significantly impacted his administration.
Political Repercussions
A joint parliamentary committee formed in August 1987 examined the claims, ultimately exonerating the Rajiv Gandhi government in 1989 through a Congress-majority vote.
Meanwhile, former defense minister VP Singh departed the government and elevated the Bofors issue as a pivotal campaign theme during the November 1989 general elections. The Congress party suffered defeat, enabling Singh to assume the prime ministership leading a Janata Dal coalition.
Rajiv Gandhi met his end on May 21, 1991, at age forty-six while campaigning in Tamil Nadu for the 1991 elections.
Legal Proceedings Unfold
The CBI filed its initial information report in January 1990, accusing former Bofors president Martin Ardbo, alleged intermediary Win Chadha, and the Hinduja brothers of criminal conspiracy, cheating, forgery, and corruption.
The Hinduja family members, who allegedly received portions of the commission payments, consistently denied the accusations.
Around 1997, a special investigation team was established. That same year, Swiss banks released approximately five hundred documents to Indian authorities in Berne following extensive legal disputes spanning four years.
The 1997 chargesheet identified Ottavio Quattrocchi, an Italian businessman representing petrochemicals company Snamprogetti and alleged to serve as a deal intermediary, alongside Chadha, Ardbo, defense secretary SK Bhatnagar, and AB Bofors itself.
Unusually, Rajiv Gandhi appeared as an accused person not forwarded for trial, having been assassinated six years prior.
A supplementary chargesheet filed in October 2000 incorporated the three Hinduja brothers—Srichand, Gopichand, and Prakash—who maintained that any funds received from Bofors bore no relation to the artillery deal.
Final Resolutions
Justice JD Kapoor posthumously absolved Rajiv Gandhi of criminal responsibility in February 2004 while ordering a forgery charge against AB Bofors. On May 31, 2005, Justice RS Sodhi eliminated all charges against the Hinduja brothers and AB Bofors, criticizing the CBI's prosecution management and noting the investigation had consumed nearly ₹250 crore from public funds.
Quattrocchi's legal journey proceeded separately. He faced arrest in Malaysia in December 2000 before receiving bail, followed by detention in Argentina in February 2007 under an Interpol notice, after which he was released.
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