Main observations of tax tribunal on Bofors caseBy IANS
Monday, January 3, 2011
NEW DELHI - Following are the main observations by an Income Tax Tribunal on matter pertaining to a taxation case slapped on a heir to one of the co-accused who allegedly received kickbacks in the 155mm Bofors Howitzer guns sale to India in 1986.
- An amount of 242.062 million Swedish kroners (Rs.412.5 million) was paid by AB Bofors as commission to Italian businessman Otavia Quattrocchi and agent Win Chadha
- The payments were routed through A.E. Services and Svenska in contravention of the Indian government’s policy not to allow middlemen or agents in the defence deals
- The Indian government had to pay excess amount of about Rs.412.5 million, which was passed on by Bofors to its agents Chadha and Quattrocchi for the Rs.15 billion deal for 400 guns
- The illicit payments to agents and others said to have been made by transactions in secret bank accounts in Switzerland
- Chadha and Quattrocchi frequently transferred the funds from one account to another to avoid detection and to obliterate the money trail
The order was delivered by Judicial Member R.P. Tolani and Accountant Member R.C. Sharma of the Income Tax Tribunal on the case pertaining to alleged tax evasion by Hersh Chadha, stated as “legal heir” to one of the accused in the Bofors case.