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Why has CBI charged aerospace company Rolls Royce with corruption? All about botched defence air deal

has now filed corruption charges against aerospace company Rolls Royce, along with several arms dealers in a botched and high-level defence deal.

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In a major move against a massive brand, the Central Bureau of Investigation (CBI) has filed an FIR against the aerospace company Rolls Royce, launching allegations of corruption and criminal conspiracy against the firm.

Apart from British aerospace brand Rolls Royce, corruption charges have been filed against some senior executives of the Indian arm of the company, London-based arms agent Sudhir Choudhrie and his son Bhanu, British Aerospace Systems, and some officers associated with the Ministry of Defence (MoD).

The case by CBI has been filed in relation to the major defence air deal, signed for the procurement of Hawk 115 Advanced Jet Trainer aircraft for the Indian Air Force and Navy. The deal was finalized in 2004, but deep-rooted corruption in the procurement has now surfaced.

Why has CBI filed corruption charges against Rolls Royce?

Rolls Royce is a luxury car brand based in the United Kingdom and but an aerospace business is also run in the same name by a different company. Rolls Royce played a major part in defence air deal regarding the procurement of Hawk 115 jet trainer and is now being charges with corruption by the CBI.

The CBI has registered a case against Tim Jones, Director Rolls Royce India, alleged arms dealers Sudhir Choudhrie and his son Bhanu Choudhrie, Rolls Royce Plc and British Aerospace Systems under Indian Penal Code section 120-B (criminal conspiracy), 420 (cheating) and provisions of Prevention of Corruption Act after completing a six-year-old preliminary inquiry registered in December 2016.

In a major move against the company, the CBI has alleged in its FIR that during 2003-12, these accused entered into a conspiracy with unidentified public servants who "abused their official positions" in lieu of "huge bribes, commissions, and kickbacks" paid by Rolls Royce to approve the aircraft purchase.

The company paid intermediaries, even though the agreements, integrity pacts, and associated documents of the deal "prohibited such payments", the CBI FIR has alleged. In this deal, a payment of over Rs 1900 crore was also sanctioned to Rolls Royce as a manufacturer’s license fee.

(With PTI inputs)

READ | CBI files FIR against Rolls Royce India in Hawk aircraft corruption case

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