The Indian government has taken a significant step in the long-standing Bofors scam case by formally requesting fresh information from the United States. This move has sparked speculation that authorities might be looking to reopen investigations into the infamous ₹64 crore defense corruption scandal that dates back to the 1980s, during the tenure of then-Prime Minister Rajiv Gandhi.
CBI’s Request to the US Justice Department
According to a report by The Times of India, the Central Bureau of Investigation (CBI) has sent a Letter Rogatory (LR)—a formal judicial request— to the US Department of Justice, seeking information related to Michael Hershman, the head of the private American investigation firm Fairfax.
Hershman, who had previously investigated the case, made startling revelations in 2017, claiming that Rajiv Gandhi was furious when he discovered the existence of a Swiss bank account named Mont Blanc, where alleged kickbacks from the Bofors howitzer deal were deposited. He further alleged that the Indian government at the time actively obstructed his investigation.
The CBI first approached a Delhi court in October 2024, seeking permission to obtain information from US authorities. This request gained momentum after Hershman expressed willingness to cooperate with Indian agencies.
What is the Bofors Scam?
The Bofors scandal was a major political controversy that surfaced in the late 1980s after Swedish Radio exposed alleged kickbacks in a ₹1,437 crore deal between India and Sweden for the purchase of 155 mm field artillery guns. The scam became a turning point in Indian politics, significantly contributing to the defeat of the Rajiv Gandhi-led Congress government in the 1989 general elections.
One of the key figures linked to the scam was Ottavio Quattrocchi, an Italian businessman with close ties to the Gandhi family. Quattrocchi was accused of acting as a middleman in the illegal payments, but he was allowed to leave India during the investigation and later settled in Malaysia.
In 2004, the Delhi High Court dismissed bribery charges against Rajiv Gandhi, stating that there was insufficient evidence. However, questions surrounding the scam’s key players and financial trails remain unresolved.
Quattrocchi’s Role and the UPA Government’s Controversial Decision
Quattrocchi remained at the center of the controversy for years. The scandal resurfaced when the UPA government in 2009 refused to challenge the release of Quattrocchi’s bank accounts in the UK, which contained millions of dollars allegedly linked to the Bofors payments.
The scam initially came to light in 1987, when the Swedish public broadcaster exposed that bribes were paid to secure the Bofors contract. This revelation shook both India and Sweden, leading to a CBI investigation in 1990.
CBI’s Legal Battle and Dismissals
The CBI filed its first chargesheet in 1999, naming Quattrocchi, the Hinduja brothers, and others as accused. However, in 2011, Quattrocchi was officially cleared of all charges, and the case against him was withdrawn. Additionally, a special court dropped all charges against the Hinduja brothers, citing a lack of conclusive evidence.
Will the Case Be Reopened?
With the Indian government now seeking new information from the US, there is speculation that the case may be revived. The CBI’s latest request could be an attempt to re-examine financial trails, identify key players, and uncover any new evidence in the decades-old scam.
As the request awaits US authorities’ response, it remains to be seen whether India’s renewed efforts will bring closure or fresh political controversy surrounding one of the country’s most high-profile defense scandals.
