KARTONGEN KEMI OCH FORVALTNING AB Vs. STATE

JUDGEMENT

(1.) The petitioners, M/s A.B.Bofors, S.P.Hinduja, G.P.Hinduja and P.P.Hinduja, have through these petitions challenged the impugned order dated 14.11.2002 passed by the learned Special Judge whereby he has charged them for having entered into criminal conspiracy with the public servants late Shri Rajiv Gandhi, Shri S.K.Bhatnagar, Win Chadha, Ottavio Quattrocchi and Bofors' President Matin Ardbo to cheat the Government of India inasmuch as that they had agreed to do or caused to be done illegal acts or acts which are legal by illegal means to cause wrongful loss to the Government of India to the tune of SEK 8410.66 million i.e. Rupees 64 crores for the award of the contract for supply of 410 guns of 155mm and by deceiving the Government of India by fraudulent representation that the said gun and gun system was better in quality and cheaper in price and that no agent or middlemen would be used in the negotiations for the contract and they would reduce the price of the gun to the extent they would otherwise pay to their agents by way of commission and thereby cheated the Government of India. These offences are punishable under Section 120-B/420 IPC.

(2.) The public servants Rajiv Gandhi and S.K.Bhatnagar were also charged for having committed criminal misconduct by abusing their official position so as to gain pecuniary advantages to all of them and having taken illegal gratification for awarding the contract in favour of Bofors. Hinduja Brothers, Bofors, Martin Ardbo and Win Chadha have also been charged for having abetted the public servants to commit such offences. These offences are punishable under Section 5(2) read with Section 5(1)(d) of Prevention of Corruption Act, 1947 and Section 161 IPC and Section 165A IPC. AB Bofors has also been charged for the offence punishable under Section 465 IPC for having dishonestly and fraudulently made false documents in the form of agreements between AB Bofors and said agents agreeing to pay money in instalments.

(3.) Observations of the learned Special Judge as to charge of public servants having taken illegal gratification/bribe by awarding the contract to Bofors need to be referred as "Preface" to this judgment. These are:- "85. ......no evidence has been collected to show that Indian politicians and/or defence personnel have themselves actually received pay-offs. The prosecution case has been considerably diluted than originally projected. The allegations in the FIR are bribery, criminal conspiracy, cheating, criminal breach of trust and forgery, whereas the charge sheet shows some of the offences only.' (order dated 29th August, 2002)