The CBI has registered a criminal case of corruption and criminal conspiracy against UK-based Rolls Royce, its subsidiary in India, unknown officials of Central Government undertakings Hindustan Aeronautics Limited (HAL), Gas Authority of India Ltd(GAIL) and Oil and Natural Gas Commission (ONGC) besides Singapore-based firm Aashmore Pvt Ltd and its Director Ashok Patni for alleged violation of the Integrity Pact and bribing government servants in procurements worth Rs 4,700 crore from 2000 to 2013.
Rolls Royce, the iconic and high-end car manufacturer, allegedly misrepresented facts to win contracts of HAL, ONGC and GAIL and the bribe was routed through the Singapore firm which in turn bribed the babus of the Public Sector Undertakings. Mumbai-based firm Turbotech Energy Services International Pvt Ltd and unknown others have also been made accused in the case registered on Monday. The FIR was registered after a five-year long Preliminary Enquiry that was registered on March 21, 2014.
Rolls Royce is alleged to have engaged the services of Aashmore as an agent and paid commission to the tune of 10 to 11.3 per cent value of the purchase orders in violation of Terms and Conditions of purchase orders and Integrity Pact with HAL. The total value of purchase orders placed on Rolls Royce by Industrial and Marine Gas Turbine (IMGT) of HAL during 2005 to 2013 was Rs 286.55 crore In addition, the Engine Division of HAL also placed orders on Rolls Royce to the tune of Rs 4455.92 crore between 2000 and 2013.
‘There is likelihood that Rolls Royce may be engaging Aashmore Pvt Ltd on payment of commission in other Purchase Orders and part of this commission paid by Rolls Royce to Sshmore Pvt Ltd may have been paid as kickbacks to unknown officials of HAL involved in the procurement process as the total business of HAL with Rolls Royce in recent years is in excess of Rs 4,700 crores,’ said Additional Superintendant of Police, Anti-Corruption Unit of CBI and complainant of the case Sandeep Chaudhary in his complaint which is part of the FIR.
It is further alleged that Rolls Royce appointed Ashok Patni, Director of Aashmore Pvt Ltd, as Commercial Advisor in India for supply of spare parts to ONGC during 2007 to 2011 by violating Integrity Pact which bars appointment of agents for execution of government contracts. ‘Rolls Royce paid commission to Aashmore in 38 transactions for supply of materials/spare parts to ONGC during the period from 2007 to 2011. The value of this commission was declared in December, 2013, which was at the rate of 10-11.3 per cent of the value,’ the complaint alleged.
It is further alleged that during the 2008-2009, Rolls Royce engaged Turbotech Energy Services International Pvt Ltd in Vijaypur, Dadri, Bawana Pipeline Project and declared two per cent commission on bid. During 2008-2009, Rolls Royce also engaged the services of another company Infinity owned by Patni for the Viajypur, Dadri, Bawana Pipeline Porject by violating the Integrity Pact with GAIL and made two per cent extra payment to Infinity for project management services in connection with the above project.
‘There is every likelihood that part of the payment made by Rolls Royce to Aashmore in case of ONGC and Aashmore/Infinity in case of GAIL may have been paid as kickback to unknown officials of ONGC and GAIL involved in the procurement process,’ added the complaint.