HC clears Rajiv Gandhi in Bofors case

The court on Wednesday upheld the decision of a Special Court framing cheating and conspiracy charges against three Hinduja brothers in the Rs 65 crore Bofors payoff case but quashed charges against them under the Prevention of Corruption Act and of abetment under Indian Penal Code.

Europe-based Hinduja brothers -- Srichand, Gopichand and Prakashchand had challenged the November 2002 order of the trial court on the ground that there was no material on record to prove their involvement in the Rs 1437 crore deal.

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The High Court also upheld the charges of fabricating documents under Section 465 of Indian Penal Code against Swedish company AB Bofors which supplied the Howitzer Field 155MM guns.

AB Bofors, now known as Kartongen Kemi Och Forvaltning AB, had also sought quashing of the charges on the ground that a body corporate could not be prosecuted for conspiracy as it did not have a mind of its own.

Justice JD Kapoor, after delivering the judgement, directed the files be sent to the Court of Chief Metropolitan Magistrate instead of the Sessions Court which was trying the case earlier as a Magistrate was empowered to try the offence of cheating and conspiracy.

The High Court fixed February 23 for commencement of the trial before the Magisterial Court.

The Government had signed the deal with the Swedish arms manufacturer in March 1986 for the supply of 400 Howitzer field guns for the Army on the condition that there would be no middlemen involved.

CBI filed two chargesheets in the case. In its first chargesheet filed in October 1999 it named the then Defence Secretary SK Bhatnagar, Bofors agent WN Chadha, Italian businessman Ottavio Quattrocchi, Bofors company and its then chief Martin Ardbo as accused.

A year later, CBI filed another chargesheet against the Hinduja brothers accusing them of having received about Rs 14 crore from Bofors as illegal commission in the deal. While Chadha and Bhatnagar have died, the probe agency has failed to secure the presence of Ardbo and Quattrocchi.