Guwahati: The Central Bureau of Investigation (CBI) has recently filed a corruption case against Rolls Royce PLC along with its top executives and arms dealers.
The case pertains to alleged kickbacks in the procurement of Hawk 115 Advanced Jet Trainer aircraft for the Indian Air Force and Navy, according to officials familiar with the matter.
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Under Section 120 (B) of the Indian Penal Code, which deals with criminal conspiracy, and provisions of the Prevention of Corruption Act, the CBI has registered a case against Tim Jones, the Director of Rolls Royce India, as well as arms dealers Sudhir Choudhrie and Bhanu Choudhrie.
The case also involves Rolls Royce PLC and British Aerospace Systems. The CBI’s action follows a preliminary inquiry that spanned six years.
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In 2017, a British court order mentioned the suspected involvement of middlemen and the payment of commissions by Rolls Royce to secure the deal, according to officials.
The allegations revolve around the period from 2003 to 2012, during which the accused, in collusion with unidentified public servants, allegedly “abused their official positions” to facilitate the procurement of 23 Hawk 115 AJTs for GBP 734.21 million.
Furthermore, the accused permitted Hindustan Aeronautics Limited (HAL) to engage in “license manufacturing” of an additional 42 aircraft using materials supplied by Rolls Royce, for which an extra USD 308.347 million was paid, including USD 7.5 million as the Manufacturer’s License Fee.
The CBI’s FIR alleges that the deal was secured through “huge bribes, commissions, and kickbacks” paid by Rolls Royce to intermediaries, despite agreements, integrity pacts, and associated documents prohibiting such payments.
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During a survey conducted by the Income Tax Department in 2006-07, crucial transaction-related documents were reportedly seized from Rolls Royce India’s office. However, the accused individuals allegedly destroyed and removed these documents in an attempt to evade the investigation.
In 2012, several media reports surfaced, alleging corruption within Rolls Royce operations, leading to an investigation by the Serious Fraud Office (SFO) in London.
As part of a deferred prosecution agreement between the company and the SFO, Rolls Royce disclosed its corruption payments in a Statement of Fact, which included transactions involving countries like Indonesia, Malaysia, and India.