Hindustan Times (Lucknow)

Decoding the ₹3.6K-cr Agusta deal

Central Bureau of Investigat­ion alleges Michel was paid bribe totalling ~295 crore to swing deal in favour of Agusta

- HT Correspond­ent letters@hindustant­imes.com ▪ ▪

WHILE CHRISTIAN HAS DENIED WRONGDOING, AGENCIES IN INDIA WANT TO KNOW THE IDENTITY OF INDIANS WHO RECEIVED KICKBACKS IN THE PURCHASE OF THE HELICOPTER­S

NEW DELHI: Christian Michel, the alleged middleman in the ₹3,600crore AgustaWest­land chopper deal, was extradited to India from the UAE. Michel, a British national, is wanted in India in connection with alleged irregulari­ties in the purchase of AgustaWest­land VVIP choppers. A look back at the specifics of the case.

WHAT IS AGUSTAWEST­LAND BRIBERY CASE?

It is alleged that bribes were paid to “middlemen”, perhaps even politician­s, when India agreed to buy 12 AgustaWest­land helicopter­s built by Italian defence manufactur­ing giant Finmeccani­ca (now known as the Leonardo group) at an estimated cost of ₹3,600 crore. The helicopter­s were for the “Communicat­ion Squadron of the Indian Air Force”. The purchase, cleared in 2010 by the previous United Progressiv­e Alliance government, envisaged replacing ageing Mi-8 choppers to ferry VVIPs such as the President, vice-president, Prime Minister and the other dignitarie­s.

The Central Bureau of Investigat­ion alleges Michel was paid a bribe totalling ₹295 crore to swing the deal in favour of Agusta.

HOW WAS THE DEAL MANIPULATE­D?

It is alleged that several parameters, for instance, the height of the cabin of the helicopter, the operating ceiling, or the maximum altitude the helicopter could fly to, were tweaked to help AgustaWest­land.

HOW DID ALLEGATION­S COME TO THE FORE?

The allegation­s came out in an Italian investigat­ion. Three of the contracted 12 helicopter­s had been delivered to the Indian Air Force before the bribery became public.

Then AgustaWest­land CEO Bruno Spagnolini and Guiseppe Orsi, chairman of AgustaWest­land’s parent company Finmeccani­ca, were arrested by Italian police in February 2013 on charges of paying bribes to win the deal. The then UPA government cancelled the deal, enchased the bank guarantee and ordered an inquiry.

WHAT DID THE CBI INQUIRY REVEAL?

CBI alleged the key players who manipulate­d the specificat­ions for VVIP helicopter deal allegedly were British national Christian Michel, and Carlo Valentino Ferdinando Gerosa (71) and Guido Haschke, from Italy and Switzerlan­d respective­ly.

CBI alleged the requiremen­ts were manipulate­d after a meeting between former air force chief, Air Chief Marshal SP Tyagi and the accused. Air Chief Marshal Tyagi, who has denied any wrongdoing, was arrested by CBI. His cousin Julie Tyagi and a Delhi-based lawyer Gautam Khaitan were also arrested for alleged wrongdoing.

WHAT DOES CBI HOPE TO GET FROM MICHEL?

While Christian Michel has denied any wrongdoing, agencies in India want to know the identity of Indians who received kickbacks in the purchase of the helicopter­s. It suspects that some politician­s and government functionar­ies could have been involved.

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