New Delhi, Sept 22: CBI today alleged before the Delhi High Court that Swedish arms manufacturer A B Bofors used Italian businessman Ottavio Quattrocchi's closeness with former prime minister Rajiv Gandhi to clinch the Rs 1437 crore deal for the supply of 400 howitzer guns to the Indian Army in March 1986. Bofors entered into an agreement with Quattrocchi's A E Services in November 1985 in which he had promised to secure the deal for the company by march 31, 1986 in lieu of three per cent commission on payments to be made by the Indian government, Additional Solicitor General Mukul Rohatagi told Justice J D Kapoor.

Justice Kapoor is hearing appeals filed by accused Hinduja brothers - Srichand, Gopichand and Prakashchand and Bofors challenging the November 2002 order of special judge Prem Kumar framing charges against them in the case.

Citing the statements of Gandhi's cabinet colleagues V P Singh, Arun Nehru and that of R Ganapathi, who was a member of the price negotiating committee for the procurement of 155mm guns, Rotahtagi submitted that Quattrocchi, was "very close" to Gandhi and his family.
He showed certain documents to the court according to which an amount of 7.34 million dollar was remitted to the account of Quattrocchi's A E Services in Switzerland in September 1986. Within five days the money was further transferred to another account from where 7 million dollar was withdrawn by the accused.

Quattrocchi's trial has been separated from the main trial as the CBI failed to secure his presence. However, the ASG discussed his role in the alleged conspiracy in order to "expose" the role of public servants and some private persons who connived with Bofors.

Bureau Report