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December 23, 1997

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High court blasts CBI for tardy progress in HDW deal



The Delhi high court has rapped the Central Bureau of Investigation for the manner in which it was probing the controversial submarine import deal.

A division bench of the high court was also annoyed that the beneficiaries and the source of the commission could not be identified even after so many years. The deal -- for importing four submarines from Germany -- was finalised in 1987 during Rajiv Gandhi's tenure as prime minister.

The bench, comprising acting Chief Justice Mahinder Narain and Justice S K Mahajan was hearing a public interest petition filed by environmental and legal activist B L Wadehra.

The court reaction came in response to the CBI submission that it had definite information regarding the payment of 'kickbacks', but it had not yet been able to establish the source and beneficiaries of the same.

''If the CBI knows that commission had been paid, why can't it gather other information regarding the deal?'' the bench observed. ''We (the people) should not always be taken for a ride.''

The West Germany-based Howaldtswereke Deutsche Werft and Allgememine Elektricitats Gesellschaft-Telefunken had allegedly paid the commission through the agents and representative of Roger Enterprises Private Limited (the Indian firm through which HDW had supplied the submarines) to strike the deal.

Additional Solicitor General K N Bhatt, appearing for the CBI, submitted that the investigating agency was serious about the probe. But, as there was a foreign connection in the case, it would take some time before the required information was available, he said.

Bhatt said the CBI had appointed a lawyer in Germany to gather information regarding the deal, but he has not been successful in collecting any important information as the company was refusing to divulge the details to ensure the clients's confidentiality.

The court, however, did not accept this contention of the CBI, saying that ''investigation is investigation and there should not be any laxity in it''.

''If commission had been paid, these are considered valid business expenses in a country like Germany and must have been maintained in the company's business books,'' the court said.

''If you could go through the HDW's income tax returns, the amount, the source and the beneficiaries could be known easily. This is not very difficult as Germany has an electronic banking system and all records are maintained properly,'' the bench told Bhatt.

The bench asked the additional solicitor general whether the CBI had sent its representative alongwith a practicing lawyer to Germany to seek the company's assistance in acquiring the information.

The court also took exception to the CBI's plea that it needed more time to complete the investigation, saying, ''You were given time earlier. But how much time do you need now? If the CBI's intention is to roll the probe under the carpet, it should be done properly. If it is to be buried, it should be buried properly.''

The CBI, in an affidavit submitted before the bench, said the investigation into the case was being pursued vigorously and a first information report was lodged.

Former defence ministry officials S S Sidhu (the then additional secretary), S K Bhatnagar (defence secretary), Captain M Kondath (director, submarine arm) and B S Ramaswamy (additional financial advisor) and former vice chief of naval staff, Vice Admiral M R Schunker were among the top government officials against whom the FIR was filed by the CBI.

London-based Sangam Limited's owner Gopi Chand Hinduja was also named in the FIR, the affidavit said.

The court directed the CBI to file the details of the probe carried out and adjourned the matter to January 21 for further hearing.

UNI

EARLIER REPORT:
CBI asked to file status report on HDW deal within two months

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