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Will govt take action on Obama kingmaker?

Updated on: 19 February,2010 10:32 AM IST  | 
B V Shiva Shankar |

That's the million-dollar question as court orders action against Henry Crown group that called Indian judiciary corrupt to wiggle out of a contract, but had no such qualms when it came to making money in a defence deal with the Centre

Will govt take action on Obama kingmaker?

That's the million-dollar question as court orders action against Henry Crown group that called Indian judiciary corrupt to wiggle out of a contract, but had no such qualms when it came to making money in a defence deal with the Centre




Lester Crown, chairman of the Henry Crown group




Hearing the case filed by an Indian company against Henry Crowns, Karnataka High Court issued a notice to the government of India, seeking information about the action taken against the American business tycoons for their derogatory comments.

A division bench comprising of Justice Gopal Gowda and Justice B S Patil said, "We want to know what the government has done, while a foreign company dared to caste aspersions on our judiciary system."

The government has to make its submission on February 23, when the court hears the case.

Likelihood of arrest?

Jurists said the issue was serious and it might result in Henry Crowns' arrest for the derogatory remarks apart from other charges levelled against them in the Indian court as well as the US court.

Kalyana Basavaraj, Assistant Solicitor General, who appeared for the government of India that is one of the respondents in the case, said, "I have written to the government seeking the information and we will make our submission to the court on Tuesday that is February 23."

He said a lot of procedure was to be undertaken before taking action against Henry Crowns because it involved Indo-US bilateral issues. Ministries of external affairs, home and law would look into it before deciding on any action against Henry Crowns.

Henry Crowns that had called the Indian judicial and political system corrupt and, therefore reneged from a commitment to buy vehicles from ANZ International, a city-based company had done a dramatic volte-face.

While General Dynamics, owned by the US $ 4.8 billion Chicago-based CC Industries Inc of Henry Crowns, entered into a Rs 14,000 crore defence deal at the same Bush Hog, the sister concern, backed out of its deal with ANZ International.

Angry, ANZ International moved the district court in the US in September 2008 and filed a suit for beach of contract with the magistrate court in the city, claiming loss of Rs 88 crore. The court has referred the case to the police for investigation. Bush Hog filed an affidavit before a US district court in Alabama, saying corruption in the Indian criminal justice system pushed them to make an exit from the contractual obligation with ANZ International.u00a0

Partha Mune Gowda, an advocate who appeared for ANZ International, said, "May be Henry Crowns are powerful in America thanks to their close relationship with Barack Obama, but they will have to face the music for their misdeeds. And I think the courts decision to issue the notice is the first step towards it."

Obama campaign

The Henry Crowns family allegedly made campaign contributions to then US presidential candidate Barack Obama of more than $ 40 million, according to an intelligence report. Obama allegedly returned favours and made James Crown, one family member, member of his National Finance Committee, while naming Museum of Science & Industry in Chicago after Henry Crown and extending budgetary support to General Dynamics.

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