New Delhi, Sept 02: The much-awaited arguments on charge in the Rs 64 crore Bofors pay-offs case began today with the CBI alleging that middlemen were engaged in violation of an assurance given to the then Prime Minister Rajiv Gandhi by his Swedish counterpart Olof Palme in January 1986.
"When Olof Palme called on Rajiv Gandhi here on January 22, 1986, he assured the Indian Prime Minister that there shall be no middlemen in the gun deal and that he would check up with the Bofors company," CBI counsel N Natrajan and US Prasad told special judge Prem Kumar.
Quoting from the statements of prosecution witnesses D M L Malhotra, a defence ministry officer, and Ronendra Sen, an external affairs ministry official, who recorded the minutes of Gandhi-Palme meeting, CBI counsel alleged that the company engaged middlemen in violation of the agreement reached at the highest level.
However, the court adjourned the arguments till tomorrow as the CBI lawyers were not "prepared". It became too obvious when Natrajan took too much time to answer the court's queries prompting the judge to comment "it seems you are directly coming from Chennai."

"No my lord, I came from Goa last evening," Natrajan replied politely.

Indian government had signed a contract with Swedish arms manufacturer A B Bofors in march 1986 for the supply of four hundred 155mm howitzer guns.
CBI alleged that the company paid huge commission to Europe-based Hinduja brothers - Srichand, Gopichand and Prakashchand and some other persons for playing middlemen in the Rs 1473 crore deal.

Bureau Report