Chargesheet marks shift in CBI stand

By Vinay Kumar

NEW DELHI, OCT. 9. The CBI chargesheet against the three Hinduja brothers tells an interesting tale of payments made by M/s. AB Bofors to secret bank accounts and its efforts to dub the pay- offs as winding up charges for consultancy services.

It also marks a definite shift in the CBI stand as it decided to go ahead with the chargesheet against the Hindujas on the basis of evidence in its possession rather than waiting for additional documents from the Swiss authorities.

For the brothers too, the development signifies a climbdown from their stand of asserting that their London-based family had nothing to do with the deal. In his latest claim from London, Mr. S.P. Hinduja, sought to convey the impression that the money paid to them by AB Bofors in 1986 had ``no relation'' to the 155-MM howitzer contract which the Swedish firm had bagged. It gives rise to an obvious query: why was the payment made by AB Bofors at that time?

Basing its chargesheet largely on circumstantial evidence, the CBI went ahead, confident of establishing links between payments to the code-named accounts, the contract secured by M/s. AB Bofors, the loss incurred by the Indian Government and the conspiracy allegedly hatched by the Swedish firm in collusion with the recipients of the commission. The agency felt that under Section 106 of the Indian Evidence Act the burden of proving their innocence would now rest with the Hinduja brothers.

According to the chargesheet, on May 15, 1986, Mr. P.P. Hinduja had requested Credit Suisse, Geneva, to open current accounts in U.S. dollars and Swedish kroners in the name of M/s. Mc Intire Corpn., which had been recently founded in Panama through their Zurich lawyer, Dr. Rippmann. He requested the bank to accept for the company 11,774,925 kroners from Skandinaviska Enskilda Banken, Stockholm, order AB Bofors, under ref. ``Mont Blanc'', without the beneficiary's name or account, with the instruction that these funds be placed at two days call. He also confirmed to the bank that he was the beneficial owner of M/s. Mc Intire Corpn.

Investigations revealed that account no. 229 ARAB was initially opened by Mr. Srichand and Mr. Gopichand, then Indian nationals, with Manufacturers Hanover Trust Company, New York, Geneva branch, Switzerland, on May 27, 1986. The account opening documents bore a stamp ``cancelled''.

However, on May 20, 1986, another account was opened in the same bank by Mr. Jurg W. Vogel in the name of M/s. Mc Intyre Corp., with the account number 229 ARAB/Tulip. A total of 37,034,590.96 kroners was credited in this account between May 22 and December 22, 1986.

In account no. 87595(Ref. LOTUS) with Swiss Bank Corporation, Geneva, 31,988,193.95 kroners was credited in the same period. In account no. 416036-32-72 in the name of M/s. Mc Intyre Corporation (Ref. Mont Blanc) with Credit Suisse, Geneva, 11,974,025 kroners was credited.

After the scrutiny of the second set of documents from Swiss authorities, which it received in December 1999, the CBI sought additional documents and clarifications on specific points. Since the transfer of documents concerned the Hindujas, they were a party before the Swiss Investigating Judge, Mr. Perraudin.

Intriguingly, the recent claim by Mr. S.P. Hinduja, made through affidavits before the Swiss judge that the funds received from AB Bofors were not related to the Bofors deal, did not convince the CBI of their innocence. It is pointed out that the Swiss court, in this instance, had merely taken note of the affidavits and that it did not amount to a certificate by the courts of the veracity of the claim. As the CBI did not have a right of hearing before the Investigating Judge in the Swiss court, the judicial forum was sought to be used rather as a ``post office,'' CBI sources said.

However, the CBI remained firm in its request for clarifications pertaining to specific queries it had sent to the Swiss authorities in accordance with the Letter Rogatory sent earlier. The Swiss authorities are yet to furnish additional documents but the CBI feels that it would only add to the available evidence and strengthen its case.

Two of the accused - Mr. S.K. Bhatnagar and Mr. Win Chadha, who returned from Dubai in March this year - were granted bail by the Special Court, but Mr. Martin Ardbo, living near Stockholm, and Mr. Ottavio Quattrocchi, based in Kuala Lumpur, are yet to be brought to India.

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