India files criminal case against BAE and Rolls-Royce
The case is based on the findings of an investigation launched by India’s Central Bureau of Investigation
29 May 2023 - 20:33
byKrishn Kaushik
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A Rolls Royce logo in New Delhi, India, May 29 2023. Picture: ANUSHREE FADNAVIS/REUTERS
New Delhi — India has filed a “criminal conspiracy” complaint against Britain’s BAE Systems and Rolls-Royce Holdings over alleged corruption in the procurement and manufacture of advanced military jets.
The case is based on the findings of an investigation launched by India’s Central Bureau of Investigation (CBI) in 2016, the document, dated May 23, says.
Rolls-Royce said the allegations being investigated were disclosed back in 2017, when it paid a £497m fine to Britain’s Serious Fraud Office (SFO) to settle a case involving transactions with countries including China, India and Thailand.
A spokesperson for the company said it was continuing to assist Indian authorities in their investigation, and that it was now “a fundamentally different business”.
“We will not tolerate business misconduct of any sort and are committed to maintaining high ethical standards,” the spokesperson said.
In its response, BAE said it would be inappropriate to comment on an ongoing probe. India’s defence ministry did not respond to a request for comment.
The document seen by Reuters alleged the manufacturers of the trainer jets paid commissions in violation of Indian defence contract rules to middlemen who helped them get the contracts by exerting “undue influence” on Indian government officials.
It also said that Rolls-Royce India and its officials entered into a criminal conspiracy with unknown officials of India’s defence ministry and two middlemen between 2003 and 2012 for contracts linked to the trainer jets.
India in 2005 signed a deal to buy 24 Hawk 115 advanced jet trainers for £734.21m, and licensed manufacturing of 42 jets for £308.25m, along with the supply of materials and transfer of technology.
The filing of the document is the first step towards a formal trial.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
India files criminal case against BAE and Rolls-Royce
The case is based on the findings of an investigation launched by India’s Central Bureau of Investigation
New Delhi — India has filed a “criminal conspiracy” complaint against Britain’s BAE Systems and Rolls-Royce Holdings over alleged corruption in the procurement and manufacture of advanced military jets.
The case is based on the findings of an investigation launched by India’s Central Bureau of Investigation (CBI) in 2016, the document, dated May 23, says.
Rolls-Royce said the allegations being investigated were disclosed back in 2017, when it paid a £497m fine to Britain’s Serious Fraud Office (SFO) to settle a case involving transactions with countries including China, India and Thailand.
A spokesperson for the company said it was continuing to assist Indian authorities in their investigation, and that it was now “a fundamentally different business”.
“We will not tolerate business misconduct of any sort and are committed to maintaining high ethical standards,” the spokesperson said.
In its response, BAE said it would be inappropriate to comment on an ongoing probe. India’s defence ministry did not respond to a request for comment.
The document seen by Reuters alleged the manufacturers of the trainer jets paid commissions in violation of Indian defence contract rules to middlemen who helped them get the contracts by exerting “undue influence” on Indian government officials.
It also said that Rolls-Royce India and its officials entered into a criminal conspiracy with unknown officials of India’s defence ministry and two middlemen between 2003 and 2012 for contracts linked to the trainer jets.
India in 2005 signed a deal to buy 24 Hawk 115 advanced jet trainers for £734.21m, and licensed manufacturing of 42 jets for £308.25m, along with the supply of materials and transfer of technology.
The filing of the document is the first step towards a formal trial.
Reuters
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