Ethics

 Ethics may be referred to some standardized form of conduct or

behavior of individuals understood and accepted in a particular field of

activity
 The work “ETHICS” has its origin in Greek word “Ethos” means

character, norms, morals and ideals prevailing in a group and society.

 Ethics is a mass of moral principles or set of values about what conduct

ought to be. They give an idea what is right or wrong, true of false, fair
or unfair, just or unjust, proper or improper, e.g. Honesty, obedience,
equality, fairness, etc and respect and then doing the right thing
 Bofors scandal
 Introduction of Bofors scandal

The Bofors scandal was a major corruption scandal in India in the 1980s;

The  Prime Minister Rajiv Gandhi and several others were accused of receiving
kickbacks from Bofors AB (Bofors Aktiebolaget )
 for winning a bid to
supply India's 155 mm field howitzer. 

• The scale of the corruption was far worse than

any that India had seen before.

• The case came to light during Vishwanath Pratap

Singh's tenure as defence minister, and was revealed
through investigative journalism by Chitra Subramaniam
and N. Ram of the newspapers the Indian Express and
The Hindu
 This is a corruption based scandal amounting to Rs. 640 million
 The name of the middleman associated with the scandal was Ottavio
Quattrocchi, 
 An Italian businessman who represented the petrochemicals
firm Snamprogetti.
• Quattrocchi was close to the family of
Prime Minister Rajiv Gandhi and emerged
as a powerful broker in the '80s between
big business and the Indian government.
 Key players in Bofors Scandal
 Mr. Rajiv Gandhi: the then Prime Minister of India, he was accused of receiving

kickbacks from bofors AB. He was Posthumously cleared from this allegation in 2004.

 Mr. S. K. bhatnagar: Former defense Secretary he accused of abusing his official

authority.

 Mr. Qttavio Quattraocchi: the alleged middel man, Quattrocchi is the long surviving

suspect in the muli-crore bofors scandal.

 Mr. Win Chadha: Arms agent. He was accused of receiving a part of the 640 millions

kickback in march 1986 by the Rajiv Gandhi Government.

 Mr. Martin Ardbo: former Bofors Chief , Ardbo was chargesheeted, ae was the

company.

 The Hinduja: Proprietor of the UK-based industrial group, the Hinduja brothers were

also investigated for their role in the Bofors Scandal.

chronology of events in the Bofors howitzer payoff
scandal:
 March 24, 1986: A $15 billion contract between the Indian government and Swedish
arms company AB Bofors is signed for supply of over 400 155mm Howitzer field guns.

 April 16, 1987: Swedish Radio claims Bofors paid kickbacks to top Indian politicians
and key defence officials to secure the deal.

 April 20, 1987: Then prime minister Rajiv Gandhi assures the Lok Sabha that no
middleman was involved and no kickbacks were paid.

 November 1989: Congress defeated in Lok Sabha election.

 Jan 22, 1990: Central Bureau of Investigation (CBI) registers complaint in the case.

 Jan 26, 1990: Swiss authorities freeze bank accounts of Svenska and AE Services,
which allegedly received unauthorised commissions for the deal.

 July 12, 1993: Swiss federal court rules that India was entitled to Swiss bank
documents pertaining to kickbacks.
July 29/30, 1993: Italian businessman Ottavio Quattrocchi, who represented Italian
fertiliser firm Snam Progetti for years, leaves India to avoid arrest.

Jan 30, 1997: CBI sets up special investigation team for the case.

Oct 22, 1999: CBI files first chargesheet naming Win Chadha, Quattrocchi, former Indian
defence secretary S.K. Bhatnagar, former Bofors chief Martin Ardbo and Bofors company.
Rajiv Gandhi's name figures as "an accused not sent for trial" -- as he was assassinated in
1991.

Early 2000: Quattrocchi approaches Supreme Court to quash arrest warrant against him.
The court asks him to appear before the CBI for interrogation while protecting him from
being arrested. Quattrocchi refuses to accept the order.

Dec 2, 2002: Malaysian court denies India's request for Quattrocchi's extradition.

July 28, 2003: Britain freezes Quattrocchi's bank accounts.

Feb 4, 2004: Delhi High Court clears Rajiv Gandhi of involvement in scandal.

May 31, 2005: Delhi High Court clears Hindujas of involvement.

 Feb 13, 2007: CBI writes to ministry of external affairs for Argentinean Extradition
Act and tells Interpol that documentation are being prepared for extradition
proceedings.

 Feb 24, 2007: Fresh arrest warrant against Quattrocchi obtained from Delhi court.

 Feb 26, 2007: Quattrochhi released on bail with condition that he does not leave
Argentina.

 March 1, 2007: Argentinean judge examines CBI application seeking Quattrocchi's

extradition.

 October 2008: Attorney General Milon Banerjee opines that CBI can withdraw Red
Corner Notice against Quattrocchi.

 Sep 8, 2009: CBI seeks two weeks time from trial court to explore options against
Quattrocchi.

 Sep 29, 2009: Government tells Supreme Court about decision to withdraw case
against Quattrocchi.
 Dec 14, 2010: A Delhi court reserves order till Jan 4, 2011 on a plea of
CBI seeking to drop criminal proceedings against Quattrocchi.

 Jan 3, 2011: An Income Tax tribunal rules that commission in

violation of Indian laws was indeed paid to Quattrochi and Chadha in
the gun deal that cost the national exchequer Rs.412.4 million some 23
years ago.
 Unethical issues
 Taking Taking or giving bribe

The  Prime Minister Rajiv Gandhi and several others were accused of receiving

kickbacks from Bofors

AB (Bofors Aktiebolaget ) for winning a bid to supply India's 155 mm field howitzer. 

• Using political Power:

The HC Ruled that the prosecution has failed to prove that the hinduja Brothers –
Gopichand, Prakashchandan & Srichand –were linked to the Kickbacks in the Bofors Deal,
which led to the ouster of late Indian Prime Minister Rajiv Gandhi from Power.The court
Later gave Rajiv Gandhi a clean cit.
 Covering up incidents

No case can Proceeded against the Hinduja or the Bofors Company in the absence of original
documents.

• Taking Advantage of Official Position

Former defense Secretary he has taking advantage of his position. He was accused of abusing
his official authority as the then Defence Secretary to tilt the scales in favour of the Swedish
firm for the Rs. 1437-crore contract to supply 155 mm howitzer guns to the Indian Army.

• Wasting Public Money & time

1 june 2005: A Protracted legal wrangle that went on and on for eighteen long years has
ended up as a cipher, as the delhi high court acquitted three hinduja Brothers in the sensational
Bofore Case. The case related to the alleged kickbacks in a 1986 arms deal. The deal was
worth 1437.72 crore that time.the kickbacks were sighted to be the turn of Rs. 64 crore, but
the probe cost Rs. 250 Crore. In a time of 18 years.