Magistrate's court admits case against rich business family that has funded US presidential campaigns
Magistrate's court admits case against rich business family that has funded US presidential campaigns
The Henry Crown family, which has wide-ranging business interests in the US and abroad, and was kingmaker for US President Barack Obama by virtue of having funded his campaign, has attracted fraud cases in India.
While a magistrate court admitted a criminal case against them yesterday, the high court had served notice to them for breach of contract with a city-based company.
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MiD DAY had published a report on how General Dynamics was sitting pretty on the Rs 14,000 defence deal, while Bush Hog ditched ANZ International causing it losses of around Rs 85 crore.
MoD policy shift
Following the report, the Ministry of Defence had shifted its policy and approached Washington for a direct government-to-government deal for acquiring defence equipment, including the 10 C-17 Globemaster-III giant strategic airlift aircraft, Stryker vehicles with reactive armour, armoured tanks and warheads.u00a0
Stryker vehicles, armoured tanks and warheads are supplied by General Dynamics.
According to a source in ANZ International, the move was a bid to allow General Dynamics to take cover under the US Government so that it would not come under direct attack.
James Crown, one of the members of the Henry Crown family, is a member of Obama's National Finance Committee.
A Aao, joint director, Ministry of Defence, said, "These are all sensitive issues and I cannot give the details before I speak to our procurement department. Policy matters cannot be discussed off hand like this."
Apart from breaching its contractual obligations, Bush Hog had cheated ANZ International by not paying for 1,500 UTVs it received from the latter, accused Irfan Sharief, chairman, ANZ International.
ANZ sent a shipment of UTVs in January last year, and the documents were sent to Bush Hog's bankers through Canara Bank. Acknowledging the delivery, Bush Hog had sent back the documents to Canara Bank, but failed to make the payment.
"This amounts to a fraud and we have filed a criminal case and the magistrate has admitted it," said Sharief.
"We want the Henry Crowns to be punished, apart from recovering money from them."
There is another case already filed questioning the unilateral termination of the contract and the court has issued a notice to the Henry Crowns along with JP Morgan, one of their banking companies, and the Government of India.
Under wraps
JP Morgan had advised Canara Bank to finance the venture of ANZ International supplying UTVs to Bush Hog, while concealing its ownership.
"JP Morgan is owned by Henry Crowns, like Bush Hog, and the banking firm did not revealed it when it advised
Canara Bank," said Sharief. "It is illegal according to RBI norms and hence the notice was issued."
Sharief noted that JP Morgan was slowly moving its assets from India to the US after its name came under a cloud, and he urged the government to freeze its assets until the case is disposed of. He also said the Henry Crowns should be blacklisted.
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