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Putting Bofors shadow behind, India Sweden to cooperate in Defence

President’s entourage includes the Minister of State for Chemicals and Fertilisers Hans Raj Ahir, Congress stalwart, Leader of Opposition in Rajya Sabha Ghulam Nabi Azad and BJP MP Ashwani Kumar besides Vice Chancellors of seven Universities.

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Pranab Mukherjee
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Even as the ghost of Bofors, a major political scandal that rocked Congress party in 1987, refuses to die down, President Pranab Mukherjee’s visit to Sweden next week will  put its shadow behind, by exploring robust defence cooperation between the two countries. For long, the scandal had put a stop on defence imports from Sweden. But coinciding Kargil war, then NDA-led government had partially  lifted its blacklist on BAE Systems, new owners of Bofors, for want of spares which was followed by signing of an MoU on defence cooperation by  in 2009.

Putting a brave face, an embarrassed government on Thursday said the reported controversial remarks of President Pranab Mukherjee on Bofors issue to a Swedish daily will have no bearing on his upcoming tour of Sweden, the first State visit. Besides a 60-member business delegation, which will travel separately, President’s entourage includes the Minister of State for Chemicals and Fertilisers Hans Raj Ahir, Congress stalwart, Leader of Opposition in Rajya Sabha Ghulam Nabi Azad and BJP MP Ashwani Kumar besides Vice Chancellors of seven Universities.

The Ministry spokesman Vikas Swarup denied that any threat was made by the India's Ambassador to Sweden Banashri Bose Harrison to the  Swedish daily that if it published off-record conversation, it may put to risk the forthcoming visit of the President. Sources in the ministry, however, conceded that the comments were not off-record and President had happily replied questions on Boforts calling it a media trial on-record. “The Ambassador had only requested the newspaper to focus on the contents of the visit as well and not entirely focus interview on President’s comments on Bofors alone,” they said.  The envoy  had also requested the newspaper not to report  a "slip of tongue", where the President had referred “Swedish residents” as “Swiss”.

Allegations that kickbacks were paid in the procurement of 155mm howitzer field Bofors guns from Sweden had pull the Rajiv Gandhi government in 1989 and till recently was haunting Congress party and its first family the Gandhis.   Secretary West Navtej Sarna said defence cooperation — as part of Make in India was  -- was high on agenda, But, he hastened to add that it was not a defence related visit, but  an overall visit of the President in which broad discussions on possible cooperation on several areas whether it is smart cities, renewable energy, defence, environmental issues regional issues climate change.

Swedish defence firm Saab has already  announced  to supply 1,900-crore self-protection systems for Dhruv, India’s indigenous Advanced Light Helicopter. The order, worth Swedish Krona 216 million (US $33 million), was placed by Indian Defence Public Sector Undertaking for aerospace systems, Hindustan Aeronautics Limited. It has also signed an MoU  with the Indian private-sector company Pipavav Defence and Offshore Engineering Company Limited to manufacture various products for Indian defence forces.

President will arrive Sweden on May 31 and thereafter  on June 2 will proceed to  Belarus on a state visit. The tiny land-locked Eastern European country is known for manufacturing heavy military and agriculture related equipment.

Chronology of events in the Bofors howitzer payoff scandal:

When Congress was in Power

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.

1987: Swedish Radio claims Bofors paid kickbacks to top Indian politicians and key defence officials to secure the deal.

1989: Congress defeated in Lok Sabha election.

When Non-Congress government was in power

1989: Prime Minister V.P. Singh's government bars Bofors from entering into any defence contract with India.

1990: Central Bureau of Investigation (CBI) registers complaint in the case.

Congress back in power

1993: Swiss federal court rules that India was entitled to Swiss bank documents pertaining to kickbacks.

1993: Italian businessman Ottavio Quattrocchi, a middle man and close to Gandhi family who represented Italian fertiliser firm Snam Progetti for years, leaves India to avoid arrest.

Congress supported United Front in power

1997: After four years of legal wrangles, secret documents running into over 500 pages given to Indian authorities in Berne.

1997: Letters rogatory issued to Malaysia and United Arab Emirates (UAE) seeking arrest of Quattrocchi and Win Chadha.

Progress during NDA rule

1998: Delhi High Court rejects Quattrocchi's plea for quashing of 'red corner' notice issued by Interpol at CBI request.

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.

1999: Trial court issues arrest warrants against Quattrocchi, while summoning other four accused.

1999: CBI team goes to Malaysia to seek extradition of Quattrocchi; fails.

2000: Quattrocchi arrested in Malaysia, gets bail but is asked to stay in the country.

2003: Britain freezes Quattrocchi's bank accounts.

Congress returns to power

2004: Swiss authorities agree to consider CBI request to provide Quattrocchi's bank details. 2005: CBI tells Crown Prosecution Service (CPS), London, that it has not been able to link the money in two accounts of Quattrocchi with Bofors kickbacks.

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.

2007: Quattrocchi detained in Argentina on Interpol lookout notice.

2007: Quattrochhi released on bail with condition that he does not leave Argentina.

2007: Court in El Dorado rejects extradition request.

2008: Attorney General Milon Banerjee opines that CBI can withdraw Red Corner Notice against Quattrocchi.

Nov 25, 2008: Red Corner Notice withdrawn.

2009: Government tells Supreme Court about decision to withdraw case against Quattrocchi.

2010: A Delhi court reserves its order on a CBI plea seeking to drop criminal proceedings against Quattrocchi.

2011: An Income Tax tribunal rules that commission in violation of Indian laws was indeed paid to Quattrochi and Chadha in the gun deal that cost the national exchequer Rs. 412.4 million some 23 years ago.

2011: A Delhi court allows the CBI to drop all charges against Quattrochhi and to close the case.

2013, Quattrochi died of a heart attack in Milan

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