New Delhi: The Enforcement Directorate (ED) on Friday raided several campuses in various cities in a money laundering case related to alleged corruption in the purchase of 75 Pilatus training aircraft for the Indian Air Force. Officials said that the agency is raiding at least 14 premises including several in Delhi and one each in Gurugram and Surat.
He said that the Central Investigation Agency has registered a money laundering case to investigate the deal and is taking this action to collect evidence under the Prevention of Money Laundering Act (PMLA). The case is related to the absconding arms ‘consultant’ Sanjay Bhandari, who is already facing separate investigations by the CBI and ED in the alleged corruption of possessing undisclosed assets in India and abroad.
It is understood that Bhandari is currently in the UK and the ED is about to initiate extradition proceedings against him. In June last year, the CBI had filed a criminal case in the Pilatus deal worth 2,895 crore. The ED took cognizance of the complaint and is investigating it with a view to money laundering and alleged illegal possessions by the accused. The CBI had registered a case against unknown company and Bhandari of the Swiss company Pilatus Aircraft Limited, Ministry of Defense and Indian Air Force. The Swiss company was one of the bidding companies for the 2009 deal. The CBI alleged that Pilatus acquired Offset India Solutions Pvt. Ltd. along with directors Bhandari and Bimal Sarin conspired criminal conspiracy and fraudulently signed a service provider agreement with Bhandari in June 2010 which was a violation of the Defense Procurement Procedure, 2008.
This was reportedly done to secure agreement to supply 75 trainer aircraft to the Indian Air Force. The agency alleged that the company paid 10,00,000 CHF (Swiss Currency) to Standard Chartered Bank account of Offset India Solution Pvt Ltd twice in August and October 2010. In addition, Rs 350 crore was also deposited in Swiss bank (Swiss currency) between 2011 and 2015 in the bank accounts of Bhandari’s Dubai-based company Offset India Solutions FZC. The CBI alleges that Pilatas dishonestly and fraudulently entered into a pre-contractual agreement with the Ministry of Defense on November 12, 2010 and deliberately concealed the facts of the service provider agreement with Bhandari. Three years after the CBI began its initial investigation into the deal, it said during the FIR that the investigation showed that Pilatas allegedly hid payments made to Bhandari’s companies in India and Dubai.
The CBI said it suspected that the money was given to allegedly influence officials of the Indian Air Force, Ministry of Defense and other government departments involved in the purchase. Pilates got the deal on May 24, 2012 for Rs 2,895.63 crore. The CBI said, “Offset India Solutions Pvt. Ltd. and other Indian companies of Bhandari and his wife received Rs. 25.5 crore during June 2012 to March 2015 in exchange for cash provided by Bhandari from various companies of Deepak Aggarwal.” The CBI alleged, “There is already strong suspicion that the aforesaid amounts are part of the amount paid to Bhandari by Pilatus Aircrafts Limited as a commission to acquire the agreement.”
The CBI has registered a case against its companies – Offset India Solutions Pvt Ltd, Offset India Solutions FZC, UAE, besides Bhandari for provisions of Prevention of Corruption Act, criminal conspiracy and fraud. The ED has also registered two other cases under the PMLA against Bhandari and filed a charge sheet against him a few months ago for making foreign assets and undisclosed assets.
