‘IMPORTANT BOFORS FILES WERE MISPLACED DELIBERATELY’

minister that he had discussed ( at the airport) with Arun Singh the question of signing the agreement with Bofors. The minister ‘gave his blessings’.”

The CAG stated that “The Indian mission in Sweden suggested in July 1987...the possibility of Bofors submitting the entire gamut of transactions to Indian audit authorities, but this was not pursued.” Officials aware of the development said that the audit was not carried out as the then Joint Secretary (Ordnance) in the Ministry of Defence, T. K. Banerjee cautioned the government about the “consequences” of allowing an inquiry by an independent CAG. Banerjee issued the cautionary note on the direction of the then Defence Secretary, S.K. Bhatnagar.

The CBI expressed its desire to approach the Supreme Court in 2005 after the Delhi High court quashed the Bofors case, but it was denied permission by the then UPA government. At the time, Hansraj Bhardwaj was the Law Minister and U.S. Misra was the CBI director.

Sources in the CBI, while commenting on the issue, said it was up to the Central government on how it wanted to move ahead, since restarting the proceedings could only happen under the direction of the Ministry of Law.