Bofors case: HC clears decks
to arrest Quattrocchi

NEW DELHI, Aug 5 (PTI) — Decks were cleared for the arrest of Italian businessman Ottavio Quattrocchi with the Delhi High Court today rejecting his plea for quashing an arrest warrant issued against him in the Rs 14.37-billion Bofors gun deal in which he allegedly got a kickback of $ 7.34 million.

A Division Bench comprising Mr Justice Devinder Gupta and Justice N.G. Nandi upheld the arrest warrant issued against Quattrocchi by the trial court and said it was up to the CBI to execute the arrest warrant in accordance with the law.

A special judge had issued on February 6 last year the non-bailable arrest warrant (NBW) against Quattrocchi, who at present is residing in Malaysia, on the request of the CBI which is probing the kickbacks paid in the 155 mm Howitzer field Bofors guns purchased from AE Services in Sweden.

The Bench in its over 70-page judgement also rejected the plea of Quattrocchi, who was allegedly close to the then Prime Minister Rajiv Gandhi, to quash the red alert issued by Interpol.

The Bench said the special judge had powers to issue the arrest warrants as he was satisfied from the records that there was "prima facie evidence" of Quattrocchi’s involvement in the gun deal kickbacks case.

The red corner notice was issued by Interpol on February 17 last year, 11 days after the issuance of the NBW.

Opposing the anticipatory bail plea of Quattrocchi, the CBI had informed the high court that it had plans to chargesheet the Italian businesman, former External Affairs Minister Madhav Sinh Solanki, former defence secretary S.K. Bhatnagar and Gopi Krishan Arora for their alleged involvement in the gun deal.

The agency had said investigations showed that the families of the then Prime Minister of India (Rajiv Gandhi) and Quattrocchi were "on very intimate terms with each other" and Quattrocchi was able to project himself as a person of great influence.

The CBI had said, "It is clear from the documents received by the agency from Swiss authorities in January 1997 that he is the beneficiary of the moneys paid into AE Services account, the first instalment of which alone was US $ 7.34 million."

Tracing the route of payment of commission by AB Bofors from the account of AE Services to two other joint accounts of Quattrocchi and his wife Maria, the CBI had said, "It is therefore clear that AE Services is none other than Quattrocchi’s front company... investigation proceedings were launched to break the front of this company (Inter Investment Development Co.) to find out the ultimate destination of these funds".

Akali Dal may recall Barnala, Sukhbir
By Gobind Thukral
Tribune News Service

CHANDIGARH, Aug 5 — The Akali Dal is on the brink of calling back its two nominees in the Union Council of Ministers. But this would not mean ending the coalition arrangement with the BJP either at the Centre or in Punjab.

The Akali Dal has two nominees, Mr Surjit Singh Barnala, a Cabinet Minister and Mr Sukhbir Singh Badal, a Minister of State, in the Union Council of Ministers.

Top Akali sources confided today that henceforth the unconditional support available to the BJP would be limited and issue based only. This hardening of the Akali attitude follows the Union Cabinet's decision to include Udham Singh Nagar district in the proposed hill state of Uttaranchal to be carved out of Uttar Pradesh. The Akali Dal had not only demanded that this predominantly Punjabi area be excluded from the new hill state with which it has no commonality, but also lobbied hard at all levels.

A firm indication of the hardening of the Akali position was available from none else than Mr Parkash Singh Badal, the Chief Minister and the president of the ruling Akali Dal. He told TNS: "We were the first to extend the hand of friendship to the BJP and we meant very sincere friendship with that party despite some misgivings. We still have this very attitude. But we expected some accommodation. Now we have a duty towards our own Punjabi people. They too are dear to us."

Asked what would be his choice between friendship and duty, Mr Badal was more than explicit." We have to choose duty first and friendship later. We are bound to protect the interest of that district. We could take any step tomorrow when the Political Affairs Committee of the Akali Dal meets to chalk out the strategy," he said.

Mr Badal who answered a number of questions on the issue felt very hurt and did not mince words. "It is being propagated that the Akalis were keen to protect the interests of the landowners only. Perhaps that is the reason that land holding size in Udham Singh Nagar district is being protected in the proposed Bill. But this is a total travesty of the truth and is meant to malign the Akalis or to create misgivings. What we had been repeatedly stating is that the basic principle of linguistic and cultural affinity should be kept in mind, besides the wishes of the people of that district who had been agitating. First we were told that we have raised the issue late. We gave proof that we had been agitating for long. Then came the question that since Udham Singh Nagar formed part of the Nainital Lok Sabha constituency, it could not be kept out of the new state. We replied that this has not been so in the case of other states and even when Punjab was reorganised in 1966. We produced expert opinion of constitutional lawyers. What more could we do?", he asked.

Mr Badal who had been trying to play down the issue was very articulate today. He said: "If some BJP Ministers have been advising us to understand their compulsions and stop demanding this, why could these leaders not understand our compulsions?"

Asked whether he had approached or would approach the Congress president and seek support on the issue, Mr Badal was equally clear. "The Congress is our enemy. We do not propose to approach that party. I have neither met Mrs Sonia Gandhi nor have any intention to meet her. As far as seeking support when the Bill is formally introduced in the next session of Parliament, we shall see whose support to seek or not. We remain committed to our present position", he said.

Mr Badal who had detailed discussions with his colleagues at his residence till late night, said that he had earlier contacted alliance partners like Ms Mamata Banerjee, Mr George Fernandes and others. But that was when he went seeking support." We propose to meet the Prime Minister, Mr Atal Behari Vajpayee on August 10 or 11 to discuss other issues. This issue too may come up. But we had said enough on this issue and the BJP too has made its position very clear. It is also not material when the Bill is finally brought forward. We have to react to the proposed Bill now being studied by the President", he added.

This hardening of the Akali position was also made clear by another senior leader and Finance Minister, Capt Kanwaljit Singh. He said, "We were the first to extend unconditional total support to the BJP when it was an untouchable party and remained firm with it during its first 13 day-old rule. Other parties came later during the elections. We helped them in Punjab and elsewhere and did not mind when that party rejected our totally justified demand that the Akali Dal should get at least four seats in Delhi, Haryana, Rajasthan and Uttar Pradesh. This was in lieu of our total support. But the BJP has treated us shabbily. It is just not done to those who extend unconditional support". He expected the PAC to make the position very clear tomorrow.

Another issue which will be hotly debated tomorrow is the role of the Union Minister for Fertilisers and Chemicals, Mr Surjit Singh Barnala. He is a signatory of the Cabinet decision to include Udham Singh Nagar district in new state of Uttaranchal. Now the BJP can say that the Akali representative was part of the decision.

But what is prompting the Chief Minister to take this clear hard line is also the attitude of his colleagues, particularly that of the SGPC Chief, Mr Gurcharan Singh Tohra. He was the first to suggest that the Akali nominees should quit the Union Council of Ministers. Also, in the game of oneupmanship, Mr Badal would not like him to steal the show. The Akali leaders were also calculating the impact on the coalition arrangement in Punjab. Most of them felt that this would go on like this and but some said it would be up to the BJP to react and decide.

The Akali Dal claims to enjoy the support of four Lok Sabha members from Haryana who owe allegiance to Mr Om Parkash Chautala. The Haryana leader has been supporting the Akalis on this issue