NEW DELHI, 5 February 2004 — The Delhi High Court yesterday cleared former Indian Prime Minister Rajiv Gandhi in a multi-million dollar Swedish arms kickback case. There was no evidence to show that Rajiv accepted bribes, the court ruled, adding the case would continue against three British-based Indian billionaire brothers and the Swedish artillery manufacture.
The arms scandal has dominated Indian politics since the mid-1980s when the government finalized a $1.3 billion deal with Sweden’s AB Bofors company to supply the Indian Army with 400 Howitzer Field 155 MM guns.
The case revolves around bribes of 640 million rupees ($14.2 million) allegedly made by Bofors to Indian leaders and businessmen to win the Howitzer contract. Indian investigating agencies claimed an Italian businessman named Ottavio Quattrocchi used his proximity to Rajiv to clinch the deal. He was arrested in Malaysia several years ago, but a court turned down India’s request for his extradition. The Bofors scandal rocked Rajiv’s government and led to his defeat in the 1989 general elections. Rajiv was assassinated by a Sri Lankan suicide bomber during a political rally on May 23, 1991.
While clearing Rajiv yesterday, the high court ruled the case would continue against the three Hinduja brothers — Gopichand, Srichand and Prakash — on charges of cheating and conspiracy.
The judge said the charges against Bofors, now known as Kartongen Kemi Och Forvaltning AB, also stand, New Delhi Television reported. The company was also accused of fabricating documents pertaining to the Howitzer supply.
