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CBI books Rolls Royce over ‘irregularities’ in spare parts supply to HAL, ONCG, GAIL

According to the CBI FIR, the total business of HAL with Rolls Royce was around Rs 4,700 crore between 2000 and 2013.

By: Express News Service | New Delhi |
Updated: July 31, 2019 1:48:30 am
Rolls Royce, CBI books Rolls Royce, Rolls Royce corruption case, Rolls Royce booked, Rolls Royce india, Rolls Royce soare parts, india Rolls Royce, HAL, ONCG, GAIL, indian express Rolls Royce, its Indian subsidiary, Patni, his firm and Mumbai-based Turbotech Energy Services International Pvt Ltd, besides unidentified officials of HAL, ONGC and GAIL have been booked by CBI for criminal conspiracy and bribery, it said.

The Central Bureau of Investigation (CBI) has booked London-based Rolls Royce for alleged irregularities in supply of spare parts to Hindustan Aeronautics Ltd (HAL), Oil and Natural Gas Ltd (ONGC) and Gas Authority of India Ltd (GAIL). The FIR, registered on Monday, is a result of five years of preliminary probe by CBI after it received a complaint from Defence Ministry.

According to the CBI FIR, the total business of HAL with Rolls Royce was around Rs 4,700 crore between 2000 and 2013. Rolls Royce allegedly paid Rs 18 crore to Singapore-based M/s Aashmore Pvt Ltd, with Ashok Patni as its director, as “commercial advisor” in 100 supply orders of Avon and Allison Engines spare parts to HAL between 2007 and 11.

The CBI also alleged that Patni was engaged in direct contracts of Rolls Royce with ONGC and GAIL for supply of spare parts. Although contracts with ONGC and GAIL allowed services of a agent, it was mandatory to declare the name at the time of bidding, a condition violated by Rolls Royce, officials said.

Rolls Royce declared the name of its agent to the oil and gas sector behemoths in 2013, violating the condition of declaring at the time of bidding, the CBI alleged.

“It is alleged that M/s Rolls Royce appointed Ashok Patni, Director of M/s Aashmore Pvt Ltd, Singapore, as commercial Advisor in lndia for providing sales, logistic support, local business expertise and strategic advice in violation of term and ‘condition’ of Purchase Orders (POs) and Integrity Pact with HAL — in case of supply of spare parts, M/s Rolls Royce paid commission to Ashok Patni of M/s Aashmore Pvt Ltd at 10 to 11.3 per cent of the value of purchase orders, which were not declared earlier at the time of execution of contract. M/s Rolls Royce, by violating conditions of POs, paid commission to M/s. Aashmore Pvt Ltd to the tune of Rs 18.87 crore in 100 POs placed by HAL during the period from 2007 to 2011,” the FIR by CBI read.

It also alleged that Rolls Royce paid Rs 29.81 crore in 73 purchase orders from 2007 to 2011 to procure material and spare parts related to engines for ONGC, but the company declared it only in 2013.

The automobile giant also paid one million British pounds with regard to 68 purchase orders from GAIL from 2007 to 2010 for spare parts, the FIR alleged. It added that the company entered into an arrangement with Turbotech Energy Services International Pvt Ltd and another company Infinity, also owned by Patni, to which extra commission was paid but was not declared to GAIL.

The total payment of commission paid by Rolls Royce comes to the tune of Rs 28.09 crore during the period 2007-10 for supplies to GAIL, the agency alleged.

Rolls Royce, its Indian subsidiary, Patni, his firm and Mumbai-based Turbotech Energy Services International Pvt Ltd, besides unidentified officials of HAL, ONGC and GAIL have been booked by CBI for criminal conspiracy and bribery, it said.

The CBI also said there was complete non-cooperation from Aashmore, and that there was conspiracy on part of Rolls Royce.

We await CBI contact: Rolls Royce

New Delhi: A Rolls Royce spokesperson on Tuesday said, “We are aware of reports that the CBI … has announced a First Information Report relating to the use of intermediaries by Rolls-Royce’s former Energy business in India. This is not about our Defence, Civil Aerospace or Power Systems businesses.”

“We await contact from the CBI and will respond appropriately …. no-one currently working for Rolls-Royce in India played any part in these Energy deals,” the automobile company added. —ENS

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