Premium
This is an archive article published on October 23, 2012

Italy probe focuses on UK consultant

VIP chopper Deal: In ’04,Christian Michel sued Dassault for not paying commission for IAF deal

The Italian probe into corruption charges in the VVIP helicopter deal for the Indian Air Force is now focusing on a highly connected British consultant who was allegedly hired by the chopper manufacturer,Agusta Westland,to influence the contract.

The consultant,identified as Christian Michel,is being investigated for receiving a portion of the Euro 51 million contract that was given by the manufacturer for Italian businessman Guido Haschke,who had been arrested last week by the authorities in Switzerland in connection with the case.

The name has generated controversy here as Michel is a little known but highly connected consultant who has been very active in the Indian defence sector for the past several years and is known for his links within the Indian government establishment.

Story continues below this ad

Sources said Michel has been associated with Agusta Westland set up in India for the past few years and is still actively involved in the Rs 3,546-crore VVIP helicopter deal that was signed in 2010. The consultant is known for regularly visiting New Delhi where is in regular touch with Agusta Westland officials.

British citizen Michel has been named as “one of the two mediators” in the deal by Italian prosecutors,according to media reports from Italy. The line of investigation being followed,reports say,is that Agusta Westland initially paid Haschke Euro 41 million as part of a contract for the Indian deal but this was increased by Euro 10 million with Michel coming into the picture. Michel’s role in both Italy and India is under investigation.

For the Indian defence establishment,Michel is a name that came to prominence in a controversial case that was filed in French courts in 2004 in which he had sued aircraft manufacturer Dassault for allegedly not paying him a share in a contract to sell fighter aircraft to the Indian Air Force.

Michel,who was the owner of a Panamanian company,Keyser Incorporated,had taken Dassault to court,alleging that the manufacturer had failed to pay him a commission for the purchase of 10 additional Mirage 2000 jets at a cost of Euro 350 million by the Indian Air Force in September 2000.

Story continues below this ad

The lawsuit was however struck down as the courts held that the contract to share commission between Michel’s company and Dassault had expired two years prior to the signing of the contract with the Indian Air Force.

With the Defence Ministry now requesting Italy for sharing of information on the ongoing probe into the VVIP helicopter deal,the role of the British consultant and his contacts in India are likely to come under scrutiny.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement