1) The requirement for VVIP helicopters was raised by the Indian Air Force (IAF) in the early 2000s.
2) After rounds of evaluations and changes in requirements, it was only in February 2010 that the United Progressive Alliance (UPA) government signed a deal with AgustaWestland for the purchase of 12 helicopters (AW-101s) to ferry VVIPs. The deal was valued at Rs 3,700 crore. It beat off competition from US rival Sikorsky to win the contract.
3) The helicopters were meant for ferrying top Indian dignitaries, including the prime minister. The AW-101 helicopters also used by the President of the US. Besides enhanced reliability that is provided by its three engines, the helicopter is fitted with advanced electronic equipment that can detect and neutralise threats.
4) In February 2013, the government decided to put on hold the deal following the arrest of chairman of Finmeccanica Giuseppe Orsi and CEO of Agusta Westland Bruno Spagnolini on charges that they had paid bribes to win the Indian VVIP chopper contract, reported Reuters.5) Subsequently, the deal was put on hold in February 2013 as the then Defence Minister AK Antony ordered a CBI probe into the matter. By the time deal was scrapped, the company had already delivered three helicopters to the IAF. The tri-engine choppers are presently parked at the Palam airbase in Delhi.
5) Subsequently, the deal was put on hold in February 2013 as the then Defence Minister AK Antony ordered a CBI probe into the matter. By the time deal was scrapped, the company had already delivered three helicopters to the IAF. The tri-engine choppers are presently parked at the Palam airbase in Delhi.6) Italian investigation reports suggested that Guido Haschke and Christian Michael were the main middlemen in the deal. According to the report filed by Italian investigators in an Italian court, the middlemen had agreed for a 7.5% commission in the Rs 3,700 crore deal. Guido Haschke made references such as “POL,” “AP” and “FAM” in a hand-written note, ostensibly pointing to the initials of politicians and bureaucrats who allegedly had to be “handled.” Former IAF chief Air Chief Marshal SP Tyagi and his cousins are among those accused of taking bribes
6) Italian investigation reports suggested that Guido Haschke and Christian Michael were the main middlemen in the deal. According to the report filed by Italian investigators in an Italian court, the middlemen had agreed for a 7.5% commission in the Rs 3,700 crore deal. Guido Haschke made references such as “POL,” “AP” and “FAM” in a hand-written note, ostensibly pointing to the initials of politicians and bureaucrats who allegedly had to be “handled.” Former IAF chief Air Chief Marshal SP Tyagi and his cousins are among those accused of taking bribes
7) The Controversy resurfaced after an Italian court reversed the verdict of a lower court that held corruption could not be proved. But the higher court in Milan found former Finmeccanica chairman Giuseppe Orsi and AgustaWestland ex-CEO Bruno Spagnolini guilty of corruption and awarded them jail terms.
8) The court said it was “validly proven” that a part of $10-15 million in illicit funds made their way to Indian officials. In its detailed order, the Italian court said payments in cash as well as through wire transfers were made to the Tyagi family — three of the former air chief ‘s cousins — and a part of them were destined for the officer himself. Tyagi was IAF chief in 2005-07, when the VVIP chopper deal was being processed by air headquarters.
9) It was during Tyagi’s tenure that the altitude ceiling of the helicopters was reduced in the tender from 6,000 m to 4,500 m. He is also accused of increasing the no. of choppers from 8 to 12. However, investigations later showed that the technical specifications had been changed prior to his becoming Chief on PMO orders.Last October, the ED attached five prime residential properties belonging to Sanjeev Tyagi, Sandeep Tyagi and Rajeev Tyagi — all cousins of the former IAF chief — as the “proceeds of crime”
10) There is a mention of “Signora Gandhi”, which is considered to be Sonia, in the judgment four times. The name came as the judgment referred to a document seized from middlemen Christian Michel to Agusta official Peter Hulet where it was mentioned that “Signora Gandhi” was the “driving force”.
Why were the Indian officials bribed at all?
In August 1999, IAF felt the need for the replacement of Mi-8 VIP helicopters as they were completing their total technical life. Also, they were unable to operate safely at night and in places with elevation beyond 2000 meters. IAF made a strong plea for a high altitude flying helicopter for areas like Siachen and the Tiger Hill. The key requirement for the helicopter was how high it could fly. Agusta Westland’s A-101 failed to make the list after flight evaluation–because it could not fly at 18, 000 feet and above. It could fly lower to around 3,000 feet of the requirement.
BI, in a report on its investigation, said the IAF had been “opposing vehemently” any suggestion of lowering the altitude requirement before SP Tyagi became the IAF chief. After Tyagi took over, the “Air Force conceded to reduce” the height requirement, allowing AgustaWestland to re-enter the bidding process, the CBI said.
Why is Sonia Gandhi’s name being brought into this?
The Milan Court of Appeals, in its judgment, took note of the conversations between the three middlemen — Carlos Gerosa, Christian Michel and Guildo Haschke — who mention ‘Mrs Gandhi’ as being the ‘driving force behind the VIP’ and her close aides Ahmed Patel and Pranab Mukherjee — the latter is referred to as being the ‘British High Commissioner’.
In a letter dated 15 March, 2008, Christian Michel wrote to Peter Hulet, the then head of India region sales and liaison for AgustaWestland, saying “Dear Peter, since Mrs Gandhi is the driving force behind the VIP, she will no longer fly with MI8 … Mrs Gandhi and her closest advisers are the aim of the High Commissioner, senior adviser Prime Minister Manmohan Singh obviously the main figure, then there’s Ahmed Patel Secretary”.
How was Tyagi involved in the scam?
The Indian Air Force had urged the Defence Ministry to purchase helicopters that were capable of flying in high-altitude areas like Siachen and Tiger Hill. After careful evaluation of the AW101, it was ascertained that it was not capable of flying 6,000 m and above and could only reach up to 4,572 feet.
The alleged middleman in the deal, Guido Haschke, revealed that while AW101 did not meet the technical requirements of the IAF, the deal was signed after Haschke tweaked the contract with the help of his Indian contacts.
A CBI report that came in later said that prior to Tyagi being appointed as Air Force chief, the IAF had ‘’vehemently opposed’’ the lowering of the altitude requirement. This changed after Tyagi came into the picture and the IAF “conceded to reduce” altitude requirements, allowing AgustaWestland to re-enter the bidding process.
