CBI Files Corruption Case Against Rolls Royce in 2004 Hawk Aircraft Deal

New Delhi: The Central Bureau of Investigation (CBI) has taken legal action against Rolls Royce, a renowned British multinational aerospace and defence company, along with its former India Director Tim Jones, arms dealers Sudhir Choudhire and Bhanu Choudhire, and British Aerospace Systems (BAE Systems).

The case revolves around alleged corruption in the procurement of 123 Hawk 115 Advanced Jet Trainer Aircraft back in 2004.

According to CBI sources, the accused individuals abused their official positions to acquire 24 Hawk 115 aircraft for GBP 734.21 million, intended for India. They also permitted Hindustan Aeronautics Limited (HAL) to license-manufacture 42 additional aircraft for USD 308.247 million. The accused allegedly paid bribes, commissions, and kickbacks to intermediaries, despite the deal explicitly prohibiting such payments.

Between 2008 and 2010, the accused individuals approved the licensed manufacturing of 57 more Hawk aircraft by HAL, valued at ₹ 9,502.68 crores, in collaboration with BAE Systems (Operations) Ltd.

The procurement was initially approved by the Cabinet Committee on Security (CCS) and the Ministry of Defense in September 2003. Contracts were signed in March 2004 between the Ministry of Defense and BAE Systems/Rolls Royce, including clauses prohibiting the involvement of agents and middlemen.

In 2012, the UK’s Serious Fraud Office (SFO) initiated an investigation into Rolls Royce, revealing bribery payments to Indian intermediaries to increase the license fee. Rolls Royce also paid bribes to tax officials in India to avoid a tax investigation.

The probe uncovered GBP 100 million paid by Russian arms companies to a Swiss bank account associated with Sudhir Choudhrie’s company, Portsmouth. These payments were linked to defence deals with Russia for the purchase of MIG fighter aircraft.

It should be noted that the Indian Air Force operates 123 Hawk Advanced Jet Trainers, while the Indian Navy operates 17, with most of these aircraft being license-manufactured by HAL.