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CBI registers preliminary probe in Rolls Royce case

New Delhi, March 21
The CBI today registered a preliminary enquiry (PE) into alleged bribery in the Rs 10,000-crore deal for supply of aircraft engines to state-owned Hindustan Aeronautics Limited (HAL) by London-based Rolls Royce.

The agency has named unidentified HAL officials, owner of Aashmore Private Limited Ashok Patni and Rolls Royce in the PE that was registered after a complaint was received from the Defence Ministry to look into the supply of engines to HAL.

The agency would probe alleged payment of bribe or kickbacks in the purchase of spare parts of helicopter engines to the industrial and marine gas turbine division of HAL.

The allegations surfaced in the form of a letter received by HAL recently claiming that bribe was paid to officials in HAL and other departments concerned to bag contracts.

Rolls Royce had conducted an internal audit in which it was found that money had been paid to commercial adviser-Aashmore Private Limited-allegedly as kickbacks to swing the deal in favour of the UK-based company.

The allegation was that Aashmore provided "sales and logistics support, local business expertise and strategic advice" in dealings with HAL in the energy sector.

HAL, through its Industrial and Marine Gas Turbine Division, buys and maintains gas turbines for ONGC and GAIL.

Ever since the controversy surfaced, Rolls Royce has maintained that the company "will cooperate fully with the regulatory authorities and repeatedly made clear that we will not tolerate misconduct of any sort".

Rolls Royce, in a letter to HAL in December last, said it had employed a Singapore-based person identified as Ashok Patni and his firm Aashmore Private Limited as "commercial adviser" in India, providing sales and logistical support, local business support and "strategic advice". The firm also told HAL that it severed ties with Aashmore and its owner in 2013.

The commission paid by the firm is in violation of the procurement rules in India which prohibits hiring of middlemen or commission agents while transacting deals with the Defence Ministry. — PTI

The brief