04 January,2011 09:00 AM IST | | Amit Kumar
Income Tax tribunal says kickbacks of Rs 41 crore were paid to late Win Chaddha and Italian businessman Ottavio Quattrocchi in the gun deal and they are liable to pay tax in India
If 2G and price rise wasn't enough, a ghost from the past has come back to haunt the Congress-led UPA government. On Monday a report of the Income-Tax Appellate Tribunal (ITAT) revealed that the department believes kickbacks were paid to the late Win Chadha and Italian businessman Ottavio Quattrocchi in the Bofors gun deal and said they were liable to pay tax in India on such income.
Also in evidence was the lack of systematisation between the party and the government. "If there would have better coordination between the Centre and the Congress, the order might have been delayed at least to save the party from further embarrassment," said a Congress leader requesting anonymity.
The BJP wasn't going to be a mute spectator. Leader of the Opposition in the Rajya Sabha Arun Jaitley on Monday demanded re-opening of criminal investigations into the 25-year-old Bofors case, citing the I-T order. He said the Bofors case was not just one of bribes paid and received, but more importantly, there was a huge cover-up operation.
"I want to remind Sonia Gandhi that we do not need five points to fight corruption, but just one: send the corrupt to jail and do not cover up," he said referring to Sonia's speech at the Congress plenary at Burari, Delhi, last month. "This was not merely a case of bribery; it has now been established by a judicial order. Bribery was accompanied by a huge cover-up operation, which lasted for almost two decades.
Nobody has still answered the question which this order raises, and we've been asking this again and again. In the year 1986, why was Mr Quattrocchi paid this money? The entire fraud, which was perpetuated by on this country by CBI at the behest of its political masters in the Congress party, stands unraveled," Jaitley added.
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The Bofors deal was worth about Rs 1,500 crore. The report claimsu00a0 that due to the kickbacks, India had to pay almost Rs. 160 crore extra for the guns.
Bofors timeline
March 24, 1986: A $15 billion contract between the Indian government and Swedish arms company AB Bofors is signed for supply of over 400 155mm Howitzer field guns.
April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top Indian politicians and key defence officials to secure the deal.
Aug 6, 1987: Joint Parliamentary Committee (JPC) set up under B Shankaranand to probe allegations of kickbacks.
July 18, 1989: JPC report presented to Parliament.
November 1989: Congress defeated in Lok Sabha election.
Dec 26, 1989: Prime Minister VP Singh's government bars Bofors from entering into any defence contract with India.
Jan 22, 1990: Central Bureau of Investigation (CBI) registers complaint in the case.
Jan 26, 1990: Swiss authorities freeze bank accounts of Svenska and AE Services, which allegedly received unauthorised commissions for the deal.
December 1992: Supreme Court reverses a Delhi High Court decision quashing the complaint in the case.
Feb 9, 1993: Supreme Court rejects former Bofors agent Win Chadha's plea for quashing the letters rogatory sent by the trial court to its counterpart in Sweden seeking assistance in the case.
July 12, 1993: Swiss federal court rules that India was entitled to Swiss bank documents pertaining to kickbacks.
July 29/30, 1993: Italian businessman Ottavio Quattrocchi, who represented Italian fertiliser firm Snam Progetti for years, leaves India to avoid arrest.
Jan 21, 1997: After four years of legal wrangles, secret documents running into over 500 pages given to Indian authorities in Berne.
Jan 30, 1997: CBI sets up special investigation team for the case.
May 1998: Delhi High Court rejects Quattrocchi's plea for quashing of 'red corner' notice issued by Interpol at CBI request.
Oct 22, 1999: CBI files first chargesheet naming Win Chadha, Quattrocchi, former Indian defence secretary S K Bhatnagar, former Bofors chief Martin Ardbo and Bofors company. Rajiv Gandhi's name figures as "an accused not sent for trial" -- as he was assassinated in 1991.
Nov 7, 1999: Trial court issues arrest warrants against Quattrocchi, while summoning other four accused.
Dec 13, 1999: CBI team goes to Malaysia to seek extradition of Quattrocchi; fails.
Early 2000: Quattrocchi approaches Supreme Court to quash arrest warrant against him. The court asks him to appear before the CBI for interrogation while protecting him from being arrested. Quattrocchi refuses to accept the order.
March 18, 2000: Chadha comes to India to face trial.
Sep 29, 2000: Hindujas issue statement saying funds received by them from Bofors had no connection with the gun deal.
Oct 9, 2000: CBI files supplementary chargesheet naming Hinduja brothers as accused.
Dec 20, 2000: Quattrocchi arrested in Malaysia, gets bail but is asked to stay in the country.
Oct 24, 2001: Win Chadha dies of heart attack.
Nov 15, 2002: Hinduja brothers formally charged with cheating, criminal conspiracy and corruption.
Dec 2, 2002: Malaysian court denies India's request for Quattrocchi's extradition.
July 28, 2003: Britain freezes Quattrocchi's bank accounts.
Feb 4, 2004: Delhi High Court clears Rajiv Gandhi of involvement in scandal.
May 31, 2005: Delhi High Court clears Hindujas of involvement.
Jan 7, 2006: Two accounts of Quattrocchi in London banks containing 3 million euros and $1 million are defreezed after then additional solicitor general B. Dutta met CPS lawyers.
Feb 6, 2007: Quattrocchi detained in Argentina on Interpol lookout notice.
Feb 24, 2007: Fresh arrest warrant against Quattrocchi obtained from Delhi court.
Feb 26, 2007: Quattrochhi released on bail with condition that he does not leave Argentina.
June 8, 2007: Court in El Dorado rejects extradition request.
October 2008: Attorney General Milon Banerjee opines that CBI can withdraw Red Corner Notice against Quattrocchi.
Nov 25, 2008: Red Corner Notice withdrawn.
Sep 29, 2009: Government tells Supreme Court about decision to withdraw case against Quattrocchi.
Dec 14, 2010: A Delhi court reserves order till January 4, 2011 on a plea of CBI seeking to drop criminal proceedings against Quattrocchi.
Jan 3, 2011: An Income Tax tribunal rules that commission in violation of Indian laws was indeed paid to Quattrochi and Chadha in the gun deal.
