Bofors: Simmering artillery 
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Bofors: Simmering artillery

The echoes of Bofors – the mother of all corruption scandals in Indian politics – has refused to fade. Now, in a dramatic twist, Pandora's box is once again being opened, breathing new life into the case that once shook the nation.

V.K. Sanju

VK SANJU

The echoes of Bofors – the mother of all corruption scandals in Indian politics – has refused to fade. Now, in a dramatic twist, Pandora's box is once again being opened, breathing new life into the case that once shook the nation. Curiously, the very same private investigator who aided VP Singh’s crusade against corruption back then is back in action.

The private detective who rattled Rajiv Gandhi

Michael Hershman.jpg

Thirty-eight years have passed, and with it, hundreds of crores have been poured into investigations. Yet, the smoke and echoes of the Bofors scandal refuse to die down. The infamous howitzers may have defended borders, but in the battlefield of Indian politics, they continue to fire salvos of controversy. Every time the case seemed to fade into oblivion, it was dramatically resurrected - be it through Win Chadha, the Hindujas or the elusive Ottavio Quattrocchi. And with each resurgence, the cannonballs of corruption have struck India’s grand old party at point-blank range.

An appeal against the High Court’s verdict, which virtually exonerated everyone entangled in the Bofors scandal, still languishes before the Supreme Court. And now, in yet another dramatic turn, the CBI is once again breathing life into this decades-old controversy, reopening the chapter. Adding an intriguing twist, the agency has sought the expertise of Michael Hershman, the very private investigator who, back in 1987, aided VP Singh in unearthing the explosive Bofors revelations which then cast a long, dark shadow over Rajiv Gandhi’s political future. But it remains to be seen whether this would be just another spin in the ever-turning wheel of Indian political intrigue.

On March 24, 1986, the Government of India inked a massive Rs 1,437-crore deal with Swedish arms giant AB Bofors, securing 410 units of the formidable 155mm field howitzers. But then came the bombshell on April 16, 1987, when Swedish Radio exposed the murky underbelly of the deal: Bofors had allegedly greased the palms of Indian politicians and defence officials to secure the contract. With this, the first explosive chapter of the Bofors corruption saga was written.

The Bofors scandal became synonymous with bribery, a labyrinth of intrigue unlike anything India had ever witnessed. It turned into a political storm that toppled Prime Minister Rajiv Gandhi’s government, a shadow that trailed him beyond office, haunting even his wife and children in the years that followed. The scandal clung to the Congress party, resurfacing time and again. And now, the CBI has once again dusted off the case, enlisting the expertise of Hershman.

Shoot and scoot

It was during the tumultuous 1980s, under Prime Minister Indira Gandhi's leadership, that the Indian Army sounded the call for modernizing its artillery, urging the Central Government to procure howitzers to strengthen national defence. What followed was lengthy deliberations leading to the Ministry of Defence expert committee rolling out a global tender. The stage was set, and the competition was fierce. Sweden’s AB Bofors entered the fray alongside French defence giant Sofma.

Bofors howizer

French firm Sofma made a tempting offer - lower price and superior range. While the Indian Army had specified a 30-km range, Sofma promised 29.2 km. And yet, in a decision favoured Bofors howitzer, despite its significantly lower range of just 21.5 km. Bofors had an ace up its sleeve - the revolutionary "shoot-and-scoot" capability. At a time when modern warfare was evolving, this unique feature gave the Bofors guns the ability to fire and quickly reposition before enemy radars could detect and retaliate.

Kickbacks: The nickname of bribe

The assassination of Indira Gandhi in 1984 shook the nation, and in the ensuing political tide, her son, Rajiv Gandhi, until then known merely as an airline pilot, was thrust into power. The sympathy wave delivered him a historic mandate, surpassing even that of his grandfather Jawaharlal Nehru. With an overwhelming majority behind him, Rajiv set out to reshape governance with a youthful zeal.

In a bold move, he fast-tracked the howitzer procurement process but introduced. In what seemed to be a strong safeguard against corruption, he declared that the government would no longer engage with defence agents and set a stringent rule - no arms manufacturer could pay commissions to middlemen. On paper, it was a decisive step towards transparency.

On October 24, 1985, Rajiv attended the United Nations General Assembly. But behind the diplomatic handshakes, a critical defence deal was being quietly reshaped. During his talks with Swedish Prime Minister Olof Palme, Rajiv made a striking proposition: India was willing to award the howitzer contract to Bofors over Sofma, provided that its controversial Indian agent, Win Chadha, was removed from the picture.

Rajiv Gandhi

With high stakes on the table, Bofors agreed and Chadha’s firm Anatronics would no longer act as its official agent in India, and no commission would be paid on the deal. But there was a catch. To accommodate these "adjustments", Bofors was conveniently allowed to revise the tender amount, without the need for a fresh bidding process.

Though Chadha was formally removed from his post, his influence did not vanish. Instead of outright commissions, a more sophisticated money trail emerged - Chadha, the Hinduja brothers and the mysterious AE Services all received hefty "consultation fees" in what was essentially a rebranded kickback.

With Swedish Radio's explosive revelation on April 16, 1987, a new term entered the lexicon of Indian journalism “kickback”. The nation reeled as reports surfaced that Bofors had funneled Rs 64 crore in bribes and commissions to secure the artillery deal. Today, that figure might seem unimpressive amid billion-dollar scams, but in the 1980s, it was enough to bring down a government.

Rajiv, cornered by the growing storm, stood in the Lok Sabha and made a bold declaration that no middlemen were involved and no commissions had been paid. He dismissed Swedish Radio’s allegations as part of a foreign conspiracy aimed at destabilizing his government.

But the political tremors were too strong to contain. Even within his own party, the rebellion was brewing. VP Singh, once a trusted Minister, turned into Rajiv's fiercest adversary. As public outrage swelled, a Joint Parliamentary Committee was formed to investigate the scandal, but the Opposition, seeing it as a mere eyewash, boycotted the proceedings.

In July 1989, the JPC submitted its report, handing the Rajiv Gandhi government a clean chit. The Congress-led committee found no evidence of kickbacks or wrongdoing. But even within this so-called exoneration, a crucial detail surfaced. The committee acknowledged the presence of two agents working in India for Bofors - Picto and Svensk. This contradicted Rajiv’s categorical assurance of keeping middlemen out. And the damage was already done.

The enigmatic Italian who kept India jittery

While the JPC was busy sanitizing the scandal, an entirely different investigation was unfolding in the shadows - Chitra Subramaniam, the Geneva correspondent for a leading Indian daily, was quietly unraveling the truth. She managed to access nearly 300 confidential documents from Switzerland and Sweden. Evidence exposed the involvement of middlemen and proved that commissions and bribes had been paid to politicians and bureaucrats. What followed was a bombshell series of investigative reports that splashed across the pages of the paper,  sending shockwaves through the corridors of power.

Chitra Subrahmanyam

As the Bofors exposé gained momentum, political pressure mounted on the newpaper, forcing the newspaper to pull the plug on further coverage. And Chitra Subramaniam resigned, but stood by her investigation.

By then, however, the damage was done. The justifications put forth by Bofors, including the infamous ‘Winding Up Cost’ - failed to hold water. Independent investigations by the CBI and the Swedish Audit Bureau later confirmed that agents were indeed involved. The probe traced the commission money directly to Swiss bank accounts belonging to Pitco, Svenska and AE Services, with deposits made on multiple occasions after the contract was signed.

Behind Svenska stood Win Chadha. Chitra’s relentless investigation unearthed even bigger players, confirming that Pitco was linked to the Hinduja brothers. Unlike the other entities, AE Services had surfaced only six months before the contract was signed. It was through this shadowy company that the biggest enigma of the Bofors bribery scandal stepped into the limelight—Ottavio Quattrocchi, the Italian businessman with deep personal ties to Rajiv and Sonia Gandhi.

Chitra’s investigation uncovered the smoking gun: 3 per cent of the total contract amount had been funnelled into Quattrocchi’s accounts through AE Services. This single revelation shattered Rajiv’s carefully curated “Mr Clean” image. Allegations swirled that even Rajiv had personally benefited, turning the Bofors affair from a political controversy into a personal indictment.

Agent Q

Ottavio Quattrocchi

Ottavio Quattrocchi was born in Mascali, Sicily, and arrived in India in the 1960s. Ostensibly, he was just another foreign agent representing the Italian oil and gas giant Eni and its petrochemical arm, Snamprogetti. But behind this business façade lay a much deeper and more influential connection. In November 2002, Special Judge Prem Kumar made a telling observation: "Quattrocchi was introduced to Rajiv Gandhi and Sonia Gandhi in 1974 by an Italian named Molinari. At that time, Rajiv was a pilot with Indian Airlines. Quattrocchi became their family friend. Italian food and gift packets were exchanged. The children of the two families became very close."

It later emerged that the Quattrocchi family's ties with Sonia Gandhi’s family in Italy predated his arrival in India. Journalist Ashok Malik once wrote that Quattrocchi's influence in Delhi’s corridors of power was undeniable and senior bureaucrats would stand up in deference the moment he entered a room. It was whispered in power circles that during Indira Gandhi’s final years, not a single contract linked to Quattrocchi’s company was ever rejected.

Snamprogetti, the Italian petrochemicals giant he represented, secured a monopoly over foreign fertilizer contracts. Many saw this as a favor extended by Indira Gandhi to Sonia and Rajiv

After Rajiv Gandhi took office as Prime Minister, Quattrocchi's influence soared to new heights. But Finance Minister VP Singh refused multiple requests for a meeting with Quattrocchi. This did not sit well with the Prime Minister, and it was soon reported that Rajiv himself intervened, urging Singh to grant Quattrocchi an audience. The message was clear - this was no ordinary businessman.

By then, Snamprogetti had already established a stranglehold on India’s fertilizer and petrochemical contracts. The company had amassed over 60 contracts, making it an unchallenged giant in the sector.In 1981, it secured a contract for nine plants and an ONGC gas pipeline. In 1983, it bagged contracts for three National Fertilizers Limited (NFL) plants. In 1984, it bagged deals for three IFFCO plants. By 1987, Quattrocchi’s influence ensured that Snamprogetti clinched contracts for two plants of Nagarjuna Fertilizers and Chemicals Limited in Kakinada.

When Quattrocchi’s company failed to clinch the lucrative Hazira-Bijapur-Jagdishpur (HBJ) pipeline contract, it set off a chain reaction that saw high-profile heads roll. Petroleum Minister Naval Kishore Sharma suddenly found his position vacant. Cabinet Secretary and seasoned bureaucrat PK Kaul was abruptly 'exiled' to the US as  ambassador. And, HS Cheema lost his job as Chairman of Gas Authority of India.

Q emerges, but R in shadows

Martin Ardbo

Chitra Subramaniam received crucial pages from the personal diary of Martin Ardbo, the Managing Director of AB Bofors, which had been seized by Swedish police. In these pages, Ardbo made a cryptic yet explosive note: "Since 'Q' and 'Six' are close, the involvement of 'Q' could be problematic." The reference to 'Q' was unmistakable - it pointed straight to Quattrocchi. 'Six', it was believed, could possibly be Rajiv Gandhi himself, the sixth Prime Minister of India.

Despite Chitra's groundbreaking investigation proving that AE Services' money had landed in Quattrocchi’s Swiss bank account, the legal system refused to acknowledge these documents as solid evidence. "No originals, only photostat copies!" This technicality made the courts  dismiss the documents outright, claiming that photocopies held no evidentiary value.

Chargesheets still stuck in limbo

CBI former directors, K Madhavan and Joginder Singh

The spectre of Bofors loomed large over Indian politics, and in 1989, it toppled the Congress from power. Two years later, in 1991, fate delivered a cruel twist when Rajiv Gandhi was assassinated in a suicide bombing. The Congress clawed its way back to power, installing PV Narasimha Rao as Prime Minister. The next year added yet another murky chapter to the Bofors saga. On the sidelines of the World Economic Forum in Davos, External Affairs Minister Madhavsinh Solanki quietly approached Swiss Foreign Minister Rene Felber and its implications were seismic. Solanki was later accused of attempting to mislead Swiss authorities, allegedly persuading them not to share crucial details of the Bofors payoffs with the CBI. A special court issued a notice, placing him under scrutiny for his shadowy diplomatic maneuvering.

Amidst the labyrinth of deceit and diplomatic double-crossing that defined the Bofors scandal, a disillusioned and disheartened CBI joint director resigned before reaching retirement age. He sought solace in his hometown of Salem, spending time with his family and practising law at the Supreme Court. He was none other than K Madhavan who had tirelessly pursued the truth, peeling away the layers of secrecy shrouding the scandal. He had penetrated the steel vaults of Swiss banks, unearthing incriminating documents that traced the murky money trail of the Bofors deal.

Madhavan stood as a rare protagonist who refused to bow and his investigation had reached a crucial juncture, with 80 per cent of the case cracked, when the Rao government abruptly removed him from the probe on October 22, 1991. Undeterred, he maintained that the Swiss banks’ willingness to cooperate was itself an acknowledgment that fraud had taken place. These were institutions notorious for their secrecy and would not have considered handing over sensitive financial records if there had been no wrongdoing, Madhavan, who resigned on November 1, 1992, asserted.

Quattrocchi, the elusive Italian businessman whose ties to the Gandhi family became a festering wound in Indian politics, became officially linked to the Bofors bribery case in 1993, when a Swiss court allowed the disclosure of Swiss bank account holders involved in the deal. Quattrocchi fled India in late July 1993 just as the CBI was preparing to interrogate him and confiscate his passport. He boarded a flight from Delhi to Kuala Lumpur, slipping through the cracks of a system that either failed to stop him or deliberately let him go,

On January 21, 1997, CBI Director Joginder Singh received crucial documents from a Swiss bank, pieces of evidence that could have cracked open the case. He boldly announced in April that he would complete the probe before his term ended in October. But Singh never got the chance and in June, the government unceremoniously sacked him and he was kicked upstairs and offered a cushioning bureaucratic waiting room post as Special Secretary in the Ministry of Home Affairs where his influence on the case would be neutralized.

Accusations of Sonia Gandhi's role in shielding Quattrocchi from justice have lingered. “The CBI is suspecting Quattrocchi. But we have not yet seen any document to prove that he has done something wrong," she declared in 1999, a statement that many saw as an attempt to cast doubt on the very investigation.

Rajiv absolved

Vijay Shankar, former director, CBI

By 1999, when the BJP-led government was at the helm, the CBI filed a chargesheet against Quattrocchi, unmasking him and his wife, Maria, as the masterminds behind AE Services - the shadowy entity that funneled Bofors kickbacks. The list of accused included Win Chadha, his wife Kanta and Rajiv Gandhi himself. What had started as an investigative exposé was now a criminal case.

In February 2004, Delhi High Court delivered a crucial verdict acquitting Rajiv Gandhi, citing lack of evidence to prove he had received Bofors kickbacks. A visibly relieved Sonia declared, “This is a special moment for me and my children after 17 years of slander and defamation.”

But the legal battle was far from over. While the bribery charges against Rajiv were dismissed, the case itself remained alive, with charges of cheating and causing financial losses to the Indian government still looming large.

As the Bofors saga dragged on, key accused Win Chadha passed away. And in May 2005, Delhi High Court absolved the Hinduja brothers and British-Indian business magnates Srichand, Gopichand, and Prakash of any wrongdoing in the case. This was not due to lack of involvement; instead, it was a technical lapse. The CBI relied on photocopies of crucial documents from Swedish authorities without proper attestation.

In 2003, Interpol unearthed a financial trail leading straight to Quattrocchi and his wife - a staggering 3 million Euros and $1 million stashed away in Swiss bank accounts. Acting on the CBI’s request, these accounts were promptly frozen, But Quattrocchi was not willing to give up without a fight. He challenged the freeze in British courts and the judiciary there dismissed his petitions, refusing to let the tainted money slip through the cracks.

Just when it seemed like the noose was tightening around Quattrocchi, Law Minister HR Bhardwaj in December 2005 discreetly dispatched Additional Solicitor General B Dutta to London on a clandestine mission, one that would reverse years of investigative efforts. It was to unfreeze Quattrocchi’s Swiss bank accounts. This was done without informing the CBI. With stunning efficiency, the mission succeeded, and the millions were once again at Quattrocchi’s disposal. But in January 2006, the decision sparked outrage, leading to a Public Interest Litigation in the Supreme Court.

By the time CBI directed to stop Quattrocchi from withdrawing the money, four million dollars had been withdrawn from the two accounts. The incident, which took place less than a year after the Sonia-led Congress came to power, dented the image of the Cabinet. Within two years, on February 6, 2007, Quattrocchi was arrested in Argentina on the basis of an Interpol warrant. On February 8, interpol informed the CBI about it. However, the CBI came out with a statement only on February 23 and was mum even when the hearing on the withdrawal was going on in the Supreme Court 10 days ago. The then CBI director Vijayashankar later clarified that Interpol had informed him in Spanish and the delay was owing to getting it translated.

Echoes from the arsenal across generations

Rajiv Gandhi with son Rahul, daughter Priyanka and wife Sonia

As fate, or perhaps careful planning, would have it, Massimo Quattrocchi was on Indian soil when his father, Ottavio Quattrocchi, was arrested in Argentina. The younger Quattrocchi landed in New Delhi on July 21, 2006, aboard Lufthansa Flight 760, remained in India for nearly seven months and left aboard Lufthansa Flight 761 on February 22, 2007, just as quietly as he had arrived.

Despite having learned about the arrest on February 8, the CBI mysteriously chose to keep it under wraps. It was only on February 23 - just a day after Massimo left India - that the agency officially released the details of senior Quattrocchi’s detention in Argentina.

On February 17, a seemingly routine reception turned into a political firestorm. The event, hosted by the brother of Biju Janata Dal's Rajya Sabha MP Baijayant Jay Panda, found itself at the centre of controversy when reports surfaced that Rajiv’s and Sonia’s daughter Priyanka Gandhi was present, as was Massimo.

The allegations ignited immediate speculation about the persistence of the Quattrocchi family's influence within India's political corridors. Congress spokesperson Digvijaya Singh rushed to dismiss the claims, vehemently denying any such meeting. Yet, the party struggled to convincingly refute the Opposition’s accusation that Massimo, much like his father in an earlier era, had managed to exert influence over Priyanka and Rahul Gandhi.

The Bofors controversy has been nothing short of a political specter, haunting the Nehru-Gandhi dynasty across generations. It first engulfed Rajiv Gandhi, marking the beginning of his political downfall. Then, as if bound by fate, it cast its shadow over Sonia, followed by Rahul and Priyanka, each finding themselves entangled in its lingering echoes.

The Bofors scandal refuses to die, because, despite decades of denials, diversions, and dismissals, no one has conclusively debunked the allegations. And what has been the Nehru-Gandhi family’s response? A mix of mockery, deflection and strategic silence, rather than an outright refutation of facts.

If Rajiv Gandhi was truly innocent, why didn’t he go after the real culprits? Or if he did, why did he fail so miserably? Instead of seeking answers, he wrote to the Swedish government, urging them to drop the investigation - a move that only fuelled suspicions further.

Then came the most bizarre twist; Rajiv turning to the ‘Sarkari Sadhu’ Chandraswami, a godman with a rap sheet longer than his spiritual credentials. Ironically, Chandraswami himself had once plotted to implicate Rajiv in the Bofors mess. Though later acquitted of forging documents in the St Kitts case to tarnish VP Singh, his close ties with Rajiv and Narasimha Rao were hardly a certificate of moral uprightness.

Sonia Gandhi, too, has attempted to publicly defend Quattrocchi, while Rahul dismissed Bofors as a “closed chapter”, as if scandals expire with time. But the most bizarre defence came from then-Prime Minister Manmohan Singh, who justified the withdrawal of the Red Corner Notice against Quattrocchi by arguing that India would be ridiculed on the global stage if it remained in place.

The spectre of corruption exposed by VP Singh

VP Singh and Rajiv Gandhi

Vishwanath Pratap Singh was brought into the Congress Cabinet from Uttar Pradesh's political battleground, with the reputation of a dacoit-slayer from the ravines of Chambal. But instead of playing the loyal party soldier and expected to play by the rulebook, he rewrote it and became an unexpected disruptor, only to earn the Congress high command's wrath.

His "offences" included slashing gold taxes, curbing smuggling networks and incentivizing law enforcement by allowing them to retain a cut from seized contraband. But what really shook the corridors of power was his unapologetic crackdown on corporate giants. He armed the Enforcement Directorate with sweeping powers to curb tax evasion, sending shockwaves through the business empire of Dhirubhai Ambani and rattling Bollywood megastar Amitabh Bachchan, who was then politically aligned with the Congress.

That’s how Singh was swiftly shunted out of the Finance Ministry and in what seemed like a strategic demotion, he was handed the Defence Ministry, which was then under Rajiv’s direct oversight. But that too backfired spectacularly.As soon as Bofors began making headlines, Singh he launched an investigation. The Congress brass, already on edge, did not wait for him to make his next move. Before he could so much as lift a finger, his ministerial chair was yanked away.

Realizing that his time in the party was over, Singh walked out, taking a moral high ground that few had dared to claim. He founded Jan Morcha, joined forces with Arun Nehru and Arif Mohammad Khan, and aligned himself with the Opposition.

During the 1989 general elections, VP Singh orchestrated a political masterstroke by merging Jan Morcha, Janata Party, Lok Dal, and Congress (S) to form the Janata Dal. But what truly electrified the campaign was his bold declaration: “If I become Prime Minister, I will prove the Bofors case within 30 days.” The Bofors scandal had already shaken public faith in the ruling party, and Singh’s crusader image made him the perfect rallying point for a disillusioned electorate.

VP Singh ascended to the Prime Minister’s chair on December 2, 1989, with the backing of an unusual coalition - Dravidian stalwart M Karunanidhi, Telugu icon NT Rama Rao and the BJP's LK Advani. His tenure, however, was short-lived, ending on November 10, 1990, barely a year later. Political turbulence overshadowed his tenure. The Ram Rath Yatra, led by Advani, sparked communal tensions, forcing Singh into a precarious balancing act. When he ordered Advani’s arrest, the BJP withdrew support, toppling his fragile coalition and the Bofors case dragged on.

The Congress and the anti-Congress forces took turns ruling the country, but the Bofors saga remained an endless loop of wasted resources and legal dead ends. The CBI, relentless in its pursuit, burned through over Rs 250 crore, all to probe a Rs 64-crore bribery case. All it achieved were acquittal of the Hinduja brothers on technical grounds; key link Ottavio Quattrocchi walking free after the CBI itself revoked the Red Corner Notice; former MD of Bofors Martin Ardbo remaining untouched, making the Bofors case less about justice and more about political theatre.

Yet, Bofors still remains India’s defining corruption scandal, not just because it involved kickbacks and political intrigue, but because it brought down a Prime Minister for the first time in independent India’s history. More than just a financial scam, Bofors was a broken promise. It shattered the image of Rajiv Gandhi, the charismatic "Mr Clean", who had once symbolized hope, modernization and a fresh start for the country.

Rajiv Gandhi was a leader with the vision and audacity to push open the doors of India's closed economy, long before Manmohan Singh's liberalization era. Yet, the man whose star power rivaled that of Bollywood icons saw his legacy shattered by artillery, not ballots. Even in death, Bofors never let go of him. His family and party have remained haunted by its shadow. The greatest truth - the one the nation deserved to know, the one it had every right to know – remains lost to the fog of politics, deception and time.

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