Fresh evidence of graft found against Rheinmetall, middleman allegedly hired to secure contract
NEW DELHI: In a new twist to a corruption case involving arms giant Rheinmetall, the investigative agencies have got fresh evidence alleging that the company entered into a commission contract with a well-known arms dealer to sell air defence guns in India in violation of rules that bar middlemen.
The contract covered a two-year period that ended 2007 during which the company signed a deal with Ordnance Factory Board (OFB). A letter confirming this from the arms company, previously known as Oerlikon Contraves AG, has been sent to the Prime Minister’s Office as well.
The contract, which ET has seen, was signed between Oerlikon and MS Sahni of the Mokul Group, an arms dealer under investigation in the corruption case, by CBI. The consultancy agreement specifies that commissions will be paid on two products sold to the Indian government — “air defence gun system Skyshield35 and air defence missile systems”.
Sahni, who was actively involved in the defence sector during the tenure of the previous United Progressive Alliance government, denied any wrongdoing.
“The alleged facts which you have mentioned in your mail are incorrect,” Sahni told ET.
Rheinmetall refused to comment. “Some matters are currently being heard in the honourable high court as well as in special courts. Unfortunately, we will not be able to comment on the queries since these matters are sub judice,” a spokesperson said.
Another crucial document that’s been uncovered is a letter by Oerlikon (Rheinmetall) to Sahni’s Mokul Group that discusses the possibility of extending the consultancy contract.
The June 29, 2007, letter that ET has seen said a review of the work done needed to be carried out.
“We consider your assessment essential as it will provide the necessary background for the decision to extend or modify the present agreement between our two companies,” said the letter, which has been signed by G Hoy, then vice-president, marketing (India), at Oerlikon. Hoy is also one of the accused in the corruption case.
Rheinmetall was banned for a 10-year period in 2012 for allegedly indulging in corrupt practices to secure a contract with OFB to manufacture air defence guns. The charge was that the company used Sahni as a middleman to influence then OFB head Sudipta Ghosh with bribes. The fresh evidence could strengthen the case of the investigative agencies. In its chargesheet, CBI has said that telephonic intercepts have “proved that Sahni had paid illegal gratification of Rs 17.5 lakh to Ghosh in connection with the collaboration agreement and MOU of OFB with RAD (Rheinmetall)”.
The contract covered a two-year period that ended 2007 during which the company signed a deal with Ordnance Factory Board (OFB). A letter confirming this from the arms company, previously known as Oerlikon Contraves AG, has been sent to the Prime Minister’s Office as well.
The contract, which ET has seen, was signed between Oerlikon and MS Sahni of the Mokul Group, an arms dealer under investigation in the corruption case, by CBI. The consultancy agreement specifies that commissions will be paid on two products sold to the Indian government — “air defence gun system Skyshield35 and air defence missile systems”.
Sahni, who was actively involved in the defence sector during the tenure of the previous United Progressive Alliance government, denied any wrongdoing.
“The alleged facts which you have mentioned in your mail are incorrect,” Sahni told ET.
Rheinmetall refused to comment. “Some matters are currently being heard in the honourable high court as well as in special courts. Unfortunately, we will not be able to comment on the queries since these matters are sub judice,” a spokesperson said.
Another crucial document that’s been uncovered is a letter by Oerlikon (Rheinmetall) to Sahni’s Mokul Group that discusses the possibility of extending the consultancy contract.
The June 29, 2007, letter that ET has seen said a review of the work done needed to be carried out.
“We consider your assessment essential as it will provide the necessary background for the decision to extend or modify the present agreement between our two companies,” said the letter, which has been signed by G Hoy, then vice-president, marketing (India), at Oerlikon. Hoy is also one of the accused in the corruption case.
Rheinmetall was banned for a 10-year period in 2012 for allegedly indulging in corrupt practices to secure a contract with OFB to manufacture air defence guns. The charge was that the company used Sahni as a middleman to influence then OFB head Sudipta Ghosh with bribes. The fresh evidence could strengthen the case of the investigative agencies. In its chargesheet, CBI has said that telephonic intercepts have “proved that Sahni had paid illegal gratification of Rs 17.5 lakh to Ghosh in connection with the collaboration agreement and MOU of OFB with RAD (Rheinmetall)”.
