Narendra Modi's 'Somalia' remarks: Bongs and Malayalis - The bond is beyond Karl Marx !

Subhash Mukhopadhyay (Bengali: সুভাষ মুখোপাধ্যায়) (16 January 1931 – 19 June 1981) was a physician in Kolkata who created the world's second and India's first child using in-vitro fertilization. Unfortunately, Dr. Mukhopadhyay was harassed by the state government, and not allowed to share his achievements with the international scientific community. Dejected, he committed suicide on 19 June 1981. 

That was supposed to be golden era of Marxism politics in West Bengal.

Those of you are not moved by this tale, please see Pankaj Kapoor-Shabana Azmi starred “Ek Doctor ki Maut”. 

                     

May be in my subconscious mind, I always consider myself lucky. Lucky because, I am born Bong. That gives me an added advantage – something of a birth right – I am intellectual, I am patriot ! I know more than many other Indians!

My father always had other opinion. He used to taunt and literally curse me saying, “You (his eldest son) think like a Naga”. I have spoken about this in these blogs earlier also. But here is a small tale, among Nagas – the Ao tribe is also known as “Naga bangali” – whatever that means. Former Nagaland chief minister S C Jamir, now Odisha Governor, also an Ao Naga used to take it as a compliment!

Among various communities, I have often found similarities of Bengali traits in citizens of Kerala and also non-resident Keralites – Malayalis – or commonly known as “mallus”. Bulk of my friendship in media world is incidentally among “mallus” – and I always feel proud about it. Bengalis are certainly a class apart.

                           

But who has ‘classified’ us into that high pedestal? Karl Marx? May be. Among several lacunae in their society, like most communities engrossed in them, we Bengalis find it distasteful to admit anything has gone wrong among us.

We also find it immensely blasphemous when others tell something wrong about us! “Arey oi beta-ra ki jaane (Arey, the hell about other people’s knowledge)”.

Hence, we have politics of Jyotism – succeeded by Didi’s dispensation blessed with Goddess Sharada Ma’s immense “kripa”.

The same “kripa” element works in Mallus also, I guess! The politics of violence is one of them. Everybody knows about it in Bengal and Kerala - but hardly anyone would speak about it. Hardly anyone would have also speak about long years of neglect of Muslims welfare in Bengal or tribal welfare in Kerala. Recall Basu’s famous “barbarous” description of BJP and Vajpayee government.

In Kerala and in Bengal, whatever we have is all virtuous rein! Jadavpur University students achieved that epitome when they screamed: “Manipur maange azadi”.

Under attack for the jingoism – they twisted intellectually – the target obvious is easy: Narendra Modi.

In Kerala too, Modi is the latest “villain”. How come he – a Gujju- compare Kerala – our God’s own country to Somalia.

In Lok Sabha, however, an Anglo-Indian nominated member Richard Hay did not mince words about deteriorating law and order situation in Kerala.

“I strongly urge upon the Government of India to intervene and  look into this heinous and barbaric crime that occurred in Kerala, a 100 per cent literate State, in daylight. Kerala is described as ‘Gods Own  Country’. Does that description suit Kerala? I call it a ‘Devil’s Own Country’ now,” said Richard Hay, who has been lately leaning towards  BJP.

Modi’s “Somalia remarks” is being used repeatedly to find fault with Gujarat’s development index.

But the fact of the matter is Modi is not the original author of such a commentary.

"The infant mortality rates in Kerala and Somalia are not comparable. But Modi is not the first politician to make such comparison with Somalia. Opposition leader VS Achuthanandan visited the tribal village of Attappadi in Palakkad district in 2013. When he met the media persons, he compared the child mortality rate of the village with that of Somalia itself. CPI(M) leader and Politburo member Pinarayi Vijayan visited the place later and said life in the village was worse than that in Ethiopia,” wrote Sreejith Panickar in a well-publicised article in Daily-O website.

So what does this bring about? Mallus and Bongs have something common to talk about.

My wife articulates it in her own wisdom: “West Bengal’s politics for last five decades has been essentially based on violent control of territory and merciless elimination of political rivals. Every Bengali worth his or her salt knows this. But when it comes to glib talks, most Bhadraloks will talk about jungle-raj in Bihar and insurgency-related killings in Assam and beyond”.

Hence my mallu friends are wasting no time to suggest that Modi has insulted Keralites! 

                                 

The reality is otherwise. The “Somalia-Modi” controversy suits sickular media because essentially it suits Sonia-Rahul-own Congress party!

Moreover, Oomen Chandy’s principal rival in the state, the Marxists are also alongwise Congress when the target is Modi!

In 2013 itself, various media reports said, "A survey conducted by Thampu, a non-governmental organisation (NGO) dealing with tribal rights, found that out of the 300 tribals affected by malnutrition 200 were children. K.Venugopal, the district medical officer, said that 412 cases of anemia and 67 cases of malnutrition had been noticed by the health department”.  

Taking it further: the Integrated Tribal Development Programme conducted a survey between 11 April 2013 and 19 April 2013 in Attappady, covering 7,565 households and a population of 23,599, and found that the number of tribal people with anemia/malnutrition was 463/69, the number of children aged below five with anemia/ malnutrition was 68/57 and lactating mothers with anemia and malnutrition was 62/0”.

Look no further.

Highlights from Lok Sabha proceedings: Manohor Parrikar on AgustaWestland

Defence Minister Manohor Parrikar in Lok Sabha on May 6, 2016 assured parliament that unlike Bofors gun deal where accused could not be brought to book, the on-going CBI probe will be able to fix the wrongdoers. 

Highlights:

# "I can assure you all, I will not fail. What we could not do in Bofors, we may be able to do in AgustaWestland," Parrikar said in response to a Calling Attention discussion in the lower house of parliament.

BJP parliamentarians Anurag Thakur, Kirit Somaiya and Nishikant Dubey, Saugata Roy (Trinamool) and Jyotiraditya Scindia (Congress) also spoke.

The Bofors controversy had erupted after allegations surfaced regarding kickbacks from Bofors AB company of Sweden for winning a bid to supply 155 mm field howitzer to India. It led to the ouster of the Rajiv Gandhi-led Congress government in 1989.

However, Ottavio Quattrocchi, an Italian businessman, who was being sought until 2009 in India for criminal charges for acting as a conduit for bribes in the Bofors scandal, later died on July 13, 2013.

Ottavio Quattrocchi

Attacking the Congress government, Parrikar, however, tried to show sympathies to former defence minister A.K. Antony and dubbed him "bechare (helpless)".

"Bechare Antony sahab ke haath baandhe they (a helpless Antony had his limitations)," Parrikar said adding, once an arrest was made in 2012 in Italy in the case, "Antony was virtually in panic".
"...because Antony wanted to protect his image," Parrikar said, adding, "within two-three hours, Antony moved the file, cleared papers and ordered a CBI probe".
He also said the field trials of the chopper outside India were initially opposed by Antony. "But he was later convinced to change his stand". 

However, the minister said, the CBI just sat over the matter and "did nothing" till January 2014.

Congress members including Mallikarjun Kharge, Sonia Gandhi and Rahul Gandhi staged a walkout at a later stage after Kharge's demand for a Supreme Court monitored probe was rejected by the government.

At one point of time, Parrikar said, the Congress leaders during their days in power 

had almost "lost a sense of proportion" and violated basic norms of tender formalities.

"It was as if the sight of Euro or the smell of money was attractive....they thought they will be in power permanently," Parrikar 

said.

Defence minister said the tender for the contract was submitted by Italy-based AgustnaWestland but given to the UK-based Agusta Westland International. 

"This was my biggest shock. I have never seen that tender was submitted by one company and given to some other company," he said. 

Parrikar said former Air Force officer N.V. Tyagi and city-based lawyer Gautam Khaitan, the two accused in the Rs.3,600-crore chopper scam, were only “small people”.

"Be it Tyagi or Khaitan, they are small people," Parikkar said. 

Defence Minister tabled a paper in the house and said this was minutes of an important meeting of May 9, 2005, wherein it was made "mandatory" that the cabin height of the VVIP choppers should 1.8 metre.

He also referred to a fire mishap in an office wherein important files are stored. 

"The fire was caught mysteriously and many files were destroyed. But three files were safe as they 

were retained in a locker by an official. I will now even ask the CBI probe the cause of the fire as it 

raises some questions," Parrikar said.

Parrikar said Antony put on hold the deal only on May 12, 2014, the fag end of Lok Sabha elections, and wondered 

if it was driven by the results of exit polls, which was nevertheless going in favour of BJP.

"Some concessions were given, especially to a single vendor. It was not given to other companies. This showed the favour," the defence minister said.

During the debate, Trinamool Congress member Saugata Roy said, while the defence minister spoke "some truths", he hastened to add, some of these would not be palatable for the BJP.

Congress member Scindia cautioned BJP of working with vendetta against Sonia Gandhi saying, "you all know what happens, when a tigress is provoked".

Defence Minister Manohor Parrikar on Friday (May 6) also sought the assistance of Lok Sabha Speaker 

Sumitra Mahajan in translating a Marathi word which the chair obliged. 

In his opening remarks to the Calling Attention notice on Agustawestland VVIP chopper deal, Parrikar used a Marathi phrase to strengthen his argument that the guilty conscious hits only a "wrong doer".

"I don't know the exact Hindi word madam. In Marathi we call it 'Aru'...it is said one who eats Aru, he only gets

the feel of it on his throat," Parrikar said.

"Aru ki bhaji jo khata hae, unke hi gale lagta hae," Parrikar said to which the Speaker offered to translate

saying Aru means: "Arbi ka pata". 

'Arbi' in Hindi is a common vegetable/leafy item also known as Taro or Eddoe and is eaten across India. It is known as "kochu" in West Bengal and eastern India and Aru in Maharashtra.  

The Lok Sabha Speaker Sumitra Mahajan is elected member from Indore seat in Madhya Pradesh and was born to a Chittpavan Koknastha Brahmin Marathi family, says Wikipedia. 

Parrikar also said:

"There were lot of discussions over Pilatus in 2012, when I came, around 62 planes were already flying. 

I thought if I raise it now, the Air Force (pilot) shortage, which has come to 164, would have gone up to 1000". 

"So sometimes you are under strain to continue even not very healthy...I will investigate but will not stop flying the equipment," Parrikar added. 

Focus on CAG Sharma

Trinamool Congress member Saugata Roy also made a veiled reference to the incumbent Comptroller and Auditor General Shashi Kant Sharma vis-a-vis AgustaWestland chopper scam.

"I want to ask whether you have questioned the DG procurement," Trinamool member Saugata Roy asked Defence Minister Manohor Parrikar participating in the discussions on the high-profile controversy.

Roy, however, did not take any name. 

The Dum Dum MP from West Bengal questioned the defence minister specifically, "What action have you taken in the one-and-a-half yearsagainst corruption?"

He also alleged that while the NDA government has been "shouting from the house top against corruption", it did not have 

anything "specific" to divulge. 

"You say that Rs.124 crore bribe has been paid," Roy pointedly told Parrikar and asked him, "What has the CBI under your government done in two years? If bribe has been paid, you should have recovered it". 

Blogger in Parliament

The CAG Shashi Kant Sharma held the post of Director General (Acquisition) -- which Trinamool MP called as "procurement" - in the defence ministry in 2007-10. 

Allegedly Sharma's name or designation as "DG (Acq.)" - short form of Acquisition figures in the list of people named by 

middleman, Christian Michel as documented in the Italian court order.

Michel is now a fugitive, Trinamool and BJP sources alleged.

BJP member Nishikant Dubey also made a veiled reference to the CAG and few other people who continue to hold constitutional positions. 

Shashi Kant Sharma belongs to the 1976 batch of Indian Administrative Service and joined the Ministry of Defence in 2003 as a Joint Secretary. 

Sharma became DG acquisition in 2007 and has been "literally controlling" the basic process of controversial AgustaWestland chopper purchase. 

He continued in the key position till 2010 and became Defence Secretary later in 2011.

In May 2013, BJP had opposed appointment of Sharma as CAG.

Even last year, a section of BJP leaders made an issue over the powers of CAG. 

In fact, on the sidelines of a conference of Public Accounts Committee chairpersons in parliament premises, BJP MP, Nishikant Dubey, also a member of PAC, had sought CAG to be made accountable to the parliament. 

"We have the incumbent CAG Shashi Kant Sharma, a former Defence Secretary, who is now auditing his own actions as the Defence Secretary when a few deals materialized,” Dubey had said.

Apparently, it is understood now that the ruling establishment is now making a case for the CBI to "question Sharma". 

The argument for the same has only gained currency once the Italian court judgment has included the "bribe list" as given by fugitive Michel as annexure.

However, Saugata Roy of Trinamool Congress has tried to argue in the Lok Sabha on Friday that the words and testimonies of a fugitive should be "taken with a pinch of salt".

(ends)

Dynasty's chosen son remained silent!

Defence Minister in Rajya Sabha: Part 2: Parrikar Waxes Eloquence on AgustaWestland

Part 2

(Speech of the Defence Minister Manohor Parrikar in Rajya Sabha)

These changes in SQRs eliminated the EC-225 helicopter which had met the Operational Requirements earlier and allowed AW-101 helicopter to enter the fray. As highlighted by the CAG in its Report, instead of making the SQRs broadbased to increase the competition, those were made more restrictive, thereby narrowing down the choices to a limited range of helicopters. 

                                   

The purpose of avoidance of resultant single vendor situation could not be met and the acquisition process, again, led to a resultant single vendor situation. 

In effect, by changing the SQRs, a situation was created in which EC-225 helicopter, which had met all Operational Requirements earlier, was eliminated by putting the requirement of 1.858 metres of cabin as an essential criterion from the competition and facilitated emergence of AW-101 as a single vendor. While the RFP was issued to M/s AgustaWestland, Italy, the response to RFP was received from M/s AgustaWestland International Ltd., UK, which was not the entity to whom RFP was issued. Did the then Government examine the serious legal implications of this aspect? 

It later emerged that the Memorandum of Association of M/s AgustaWestland International Ltd., (AWIL) does not provide for any activity of M/s AWIL as an OEM and its Annual Report indicated that its business was coordinated with other group company, wherein its responsibility extended to customer relationship and coordinating customer requirements. I think that is what they did. The bid of M/s AgustaWestland International Ltd., UK, should have been rejected outright as it was not the agency to whom the RFP was issued. But for the logic, purpose and motive best available with the leadership of the then Government, this did not happen. Instead, the relentless push in favour of AWIL continued. 
                                                                                            

In effect, the Government of India was signing an agreement for supply of helicopters with a company that had no OEM capability, which would appear highly irregular. There is also no tangible reason stated for this unusual structure. During the processing of the case, the following deviations from RFP or DPP were approved by the then Raksha Mantri. Now, I come to conduct of field trials abroad. I agree that you initially objected; that is your nature. The CAG Report has highlighted that the Field Evaluation Trial..(Interruptions).. of AW101 of AgustaWestland was conducted on representative helicopters Merlin MK-3A and CIV01 and mock-up of the passenger cabin and not on the actual helicopter, whereas actual S-92 helicopter of Sikorsky was evaluated. Even at the stage of FET, the helicopter offered by AgustaWestland was still in its development phase. 

DPP mandates that FET must be carried out in all conditions where the equipment is likely to be deployed. RFP has categorically stated that FET would be carried out in India-- this was the specific requirement of RFP-- in varying climates, altitude and terrain conditions, on 'no cost no commitment' basis. 

Conduct of trials in India is extremely critical, especially, for helicopters meant to carry VVIPs because the terrain, climate and topographic conditions greatly vary with those of USA and UK. This crucial aspect has been given a go-by by permitting trials in foreign lands. The serious nature of deviations from standard FET conditions for the AW-101 in terms of trials being held outside India and not on the actual helicopter was exacerbated by the fact that even at the time of FET, the Augusta Westland helicopter was in developmental stage. ...Sir, this created some problems when the three helicopters were received and were being put on test trials. 

Blogger

I will just read one para from a file of Air Force where the trials were taking place. 
I will read one para only. I quote, "At Srinagar, 5,400 feet above the sea level, effective payload of this helicopter is nil in OGL configuration at all ranges of temperature. Even in IGE configuration, a reduced payload is to be accepted. The common VVIP sorties to Nehru Helipad cannot be undertaken. Similar is the case of Gulmarg, Pahalgam where VVIP sorties have been flown in the past using Mi-17iv helicopter." 

This file luckily was saved from a devastating fire which took place on 3rd of June, 2014 which burnt down all the records in that particular office. But this file remained in the drawer of the officer. So, it survived. ...(Interruptions)... This could not be further verified because obviously the helicopter was stopped from testing after that. ...(Interruptions)... Additional commercial quotes sought from both the vendors. 

Third, acceptance of the partial compliance of the two SQRs in respect of AW-101 non-VIP version helicopter. Neither S-92 nor AW-101 fully complied with SQR in the FET. However, AW-101 was recommended for induction in spite of emerging as a single vendor by waiving off two parameters, while no such concession was granted to S-92. The warranty of 'three years/2000 hours whichever is earlier' on the airframe and 'three years/1200 hours whichever is earlier' on the engine offered by M/s Sikorsky and 'three years/900 hours whichever is earlier' offered on the whole helicopter by M/s AWIL was accepted instead of RFP stipulation of 'three years/900 hours whichever is later'. 

Acceptance of option clause for three years instead of five years. Inclusion of additional items such as Traffic Collision and Avoidance System, Enhanced Ground Proximity Warning System for all 12 helicopters and Medevac system for 8 VVIP helicopters at CNC stage. ...(Interruptions)... Deletion of Active Missile Approach Warning System, Incorporation of Rear Air Stairs in 04 non-VVIP helicopters. ...(Interruptions)... Completion of helicopter delivery in 39 months instead of 36 months. The accepted principle in procurement is that deviations must be approved only under exceptional circumstances, for robust rationale and exercising extreme caution. ...

                            

The numerous deviations approved appear to flout this norm, as has also been pointed out by the Comptroller and Auditor General in their report. That CAG Report has highlighted that the allowed offsets were not compliant with DPP and many Indian Offset Partners were not eligible. Augusta Westland gave a year-wise breakup of work from 2011 to 2014 to be executed by IDS Infotech under this offset programme even though the work has been completed well before the conclusion of the contract in 2010. 

Now, this is very important. Investigation in the matter so far revealed involvement of IDS Infotech as a conduit for transfer of bribe money. We have already got court orders on that too. I would explain what action we have taken on that. The benchmark cost arrived by CNC was unreasonably high and had provided no realistic basis for price negotiations. The benchmark cost as worked out by CNC was Euro 727 million, approximately, Rs. 4,877.50 cores, which is six times the estimated total project cost of Rs. 793 crores, in January, 2006, wherein the estimated unit cost of AW-101 – this is very important – was considered as Rs. 100 crore, approximately Euro 15 million, at the time of SOC. When the recommendation was given for acceptance of RFP, this was the price quoted by the Air Force – Rs. 100 crores, that is, Euro 15 million. 

The CAG Report has stated that the base price of US $ 27 million for the year 2000 was adopted by CNC, while the base price of AW- 101 VIP helicopter was US $ 18.2 million in the year 2010, as seen from the Internet. SHRI ANAND SHARMA: Internet? 

Even the Air Force has estimated it as 15 million dollars in 2006. It is there on the records. ....I am reading from the CAG Report. I would provide whatever clarifications you may need later. ...(Interruptions)... MoF, in their observation on CCS note, stated that they are unable to support the proposal. 

The Ministry of Finance also asked that a response to the letter of the MP, Shri Nathubhai G. Patel to the CVC may be incorporated in the final CCS note along with MoD’s response thereon. The salient observations of MoF were based on following aspects: Final negotiated price being high as compared to the estimated AoN cost; SQRs not being broad-based; while the proposal of M/s ROE was rejected for want of EMD and Integrity Pact, the other two were considered despite certain features of both proposals not conforming to RFP requirements. The remaining two vendors were allowed to submit additional commercial quotes and later, M/s AWIL was allowed to make corrections in its EMD and Integrity Pact. 
FET not conducted in Indian  conditions. 

During FET/SE, the helicopter offered from M/s Sikorsky was not accepted due to noncompliance with certain requirements and partial compliance with certain others while the helicopters offered by M/s AWIL were accepted despite partial compliance with certain requirements; and changes to the technical requirements made after opening of price bid and changes to certain terms and conditions of RFP made. Similar concerns were raised by the MP before the CVC, stating that the case is in violation of CVC norms. The CCS approved the proposal for procurement of 12 VVIP and VIP helicopters from Messrs Augusta Westland, UK, in the meeting held on 18th January, 2010, for the following reasons: 

(i) Augusta Westland helicopters have been selected after multivendor competition bid, for which RFPs have been issued to six vendors, out of which only two vendors responded. (ii) Augusta Westland helicopter was the only helicopter that met the SQRs framed for the VVIP version and the operational requirements of the IAF. 

The other helicopters participating in the trial did not meet the SQR. (iii) The present fleet of VVIP helicopters will complete their total technical life in the year 2010.

The RFPs for the present procurement was issued on 27th September, 2006 and any further delay would jeopardize the requirement. ...(Interruptions)... (v) Now that considerable time has elapsed, it is likely that a fresh tender would lead to further escalation of costs. ...

The CCS approval for the decision appears predicated primarily on Augusta Westland being the “only helicopter” meeting the SQRs and multiple deviations from the SQRs including shortfalls were approved. ...(Interruptions).

The matter started about corruption appearing in the various media in Italy from February, 2012. The Government of India, instead of taking action on the company, adopted 4 Uncorrected / Not for Publication 04.05.2016 a route of writing to the Ministry of External Affairs, to the Embassy, to the Court,...(Interruptions)... 

Media reports of alleged wrongdoing and unethical conduct by M/s. Finmeccanica, parent company of M/s. AWIL, UK, in connection with the purchase of VVIP helicopters and initiation of preliminary investigation against the company in Italy started surfacing since February, 2012. ...(Interruptions)... While Embassy in Rome was approached to get credible information regarding the status of investigation and authenticity of the documents/records being cited in various reports, however, no explanation was asked from the company and the operation of the said agreement continued. ...(Interruptions)...

Even the deliveries of three helicopters were accepted in December, 2012. ...(Interruptions)... Only on receiving the reports of arrests of M/s. Finmeccanica Chief, Mr. Orsi, the Ministry of Defence, on 12th February, 2013, asked the CBI to conduct an inquiry into the matter. ...

The operation of the agreement was put on hold and payments stopped with issuance of the first Show Cause Notice (SCN) to M/s. AWIL, UK, on 15.02.2013. ...

The Italian authorities commenced criminal proceedings from 19th June, 2013, at the Court of Busto Arsizio, Milan, in this case. (Contd. by 4P - GSP) GSP-PSV-4P-7.05 SHRI MANOHAR PARRIKAR (CONTD.): The documents obtained through these proceedings have been shared with the CBI and the ED. ...(Interruptions)... Some of the documents so received were used in taking action for cancellation of contract. ...(Interruptions)... These documents included a classified document titled 'Revised Operational Requirements for VVIP helicopters'. ...(Interruptions)... After consultation with ASG, a Second SCN was issued to M/s AWIL, UK on 21.10.2013. M/s AWIL, UK raised the issue of going for arbitration in the letter dated 4.10.2013, and, again in the response dated 25.11.2013. 

                                             

The AG, inter-alia, advised that in view of the fact that on 4.12.2013, M/s AWIL, UK has given notice to nominate an Arbitrator within thirty days and the consequences of not appointing an Arbitrator would be quite serious, therefore, there does not appear to be any choice but to nominate an arbitrator. ...(Interruptions)... He stated that it is also necessary at this stage to issue termination/cancellation letter simultaneously or even prior to nomination of an Arbitrator. ...(Interruptions)... Accordingly, as per the advice of the AG, the contract was cancelled on 1.1.2014 and all the guarantees / bonds were invoked. ...(Interruptions)... The warranty bond, the performance bond, the IPBG were encashed in full after court proceedings. However, against an advance payment of Euro 250.32 million given to M/s AWIL, only an amount of Euro 199.62 million towards delivery of three helicopters, were recovered. 

In addition, the Government also suffered an estimated loss and damages of Euro 398.21 million. ...(Interruptions)... From the appearance of media reports about alleged wrongdoings in February, 2012... ..

It took nearly two years to cancel the contract, and, that too, primarily as a response to an arbitration request by the supplier. .

 In fact, the very delivery of the first 3 aircrafts could have been avoided. ...(Interruptions)... We must ask ourselves as to why... ...(Interruptions)... 9 Uncorrected / Not for Publication 04.05.2016 

When even though the reports of wrongdoing and unethical conduct by M/s Finmeccanica in connection with the purchase of these helicopters and initiation of preliminary investigation against the company in Italy surfaced since February, 2012... ...(Interruptions)... 

.....followed by a report of arrest of M/s Finmeccanica Chief, ...(Interruptions)... the action of putting on hold all procurement/acquisition cases in the pipeline with the entire Finmeccanica Group of Companies and other companies figuring in CBI FIR was approved on file by the then RM only on 12.05.2014 towards the fag end of the then Government's tenure. 

As regards the issue of alleged substantial disregard and extensive delay in providing necessary documents by the Ministry in the Criminal court proceedings at Milan, it is stated that the documents were not in the custody of the MoD but in the custody of CBI before MoD became a civil party to the criminal proceedings at Milan. ...

Sir, vide its letter dated 12.02.2014, it has executed the LRs received from Italy on 27.01.2014. ...(Interruptions)... As far as the investigation by the CBI and the ED is concerned, it is strange that the CBI which registered an FIR in the matter on 12th March, 2013, based on the reference made by the 11 Uncorrected / Not for Publication 04.05.2016 Ministry of Defence on 12th February, 2013, did not bother to forward a copy of the FIR to Enforcement Directorate for nine months. ...(Interruptions)... It was only in December, 2013, that is, after a gap of nine months, CBI forwarded the FIR to Enforcement Directorate. 

Even more strangely, the Enforcement Directorate did not act on the FIR in July, 2014. It appears that invincible hand was guiding the actions or inactions by CBI and ED. 

 After the present Government took over, CBI and Enforcement Directorate have been vigorously pursuing all aspects of the investigation ..........including the arrests and/or extradition of three foreign nationals, namely, Mr. Carlo Gerosa, Mr. Guido Haschke and Mr. Christian Michel James. 

Red Corner Notices were issued in December, 2015 and January, 2016 ....Extradition request has also been made for Mr. Christian Michel James. ..(Interruptions).. One of the agencies has arrested an Indian national and attached property worth Rs. 11 13 Uncorrected / Not for Publication 04.05.2016 crores belonging to Indian nationals and Mr. Christian Michel James. ..

Pursuant to the judgment of Milan Appellate Court, Ministry of Defence have written to both the ED and the CBI to take into account the contents of the judgment and conclude the investigations expeditiously. ..(Interruptions).. MoD is initiating the process of blacklisting the concerned companies.

 It is most obvious to the entire nation that M/s AWIL was favoured at every stage. ..(Interruptions).. Even after the conclusion of the contract, when reports of wrong doing and unethical practices started appearing in February, 2012 and thereafter, ..(Interruptions).. 14 Uncorrected / Not for Publication 04.05.2016 SHRI ANAND SHARMA: Sir, after 6 o'clock, you have to take the sense of the House. ..(Interruptions).. When will the Members seek clarifications on the Statement? 

It was only after the arrest of Mr. Orsi by Italian Authorities, the matter was referred to CBI for investigation. .. Even after handing over the matter to CBI ..(Interruptions).. no concrete action was taken to terminate the contract till January, 2014. ..(Interruptions).. 

 MoD had no option but to cancel the contract based on legal advice ..(Interruptions).. 

On the verge of completion of the 2014 general election. ..(Interruptions).. If the then Government had acted in right earnest and took proactive action immediately after appearance of reports of wrong doing ..

... the country would not have been saddled with delivery of three helicopters in December, 2012 and the entire advance payment could have been recovered. 

The previoius Government recognized this and approved putting on hold of the group in May, 2014 and the present Government passed the order. ..(Interruptions).. The Italian court judgement also unequivocally accepts and on that basis has passed jail sentences against involved individuals that the deal involved bribery and corruption. 

The Italian court judgement has outlined the payment of bribes to decision makers in India, in the bureaucracy, political establishment and the Air Force. The text of the judgement also makes reference to various individuals such as Tyagi family as well as some bureaucrats. 

The central matter in this issue is that of corrupt practices. Hence the main action required is to trace, detect and unmask the means of these corrupt practices and bribery through a thorough enquiry and investigation by agencies.

Given the above background, this inquiry
will necessarily focus on the roles of those named in the judgement of
the Italian court. ..(Interruptions).. It is also important for ensuring a
comprehensive investigation that any individuals with involvement in the
AgustaWestland deal, even in tertiary manner, are removed from any direct or indirect role in investigation. ..


The Government will leave no stone
unturned to bring to justice those that have committed this corrupt act
against our national interest. 
(ends) 

Manohor Parrikar in Rajya Sabha: Waxes Eloquence on Agustawestland VVIP chopper deal (May 4, 2016)

Part 1 

(Speech of the Defence Minister Manohor Parrikar)

Sir, let me first make it very clear that whatever I am now putting before the House, if 

you require, I will authenticate it, I will certify it. It comes from the Ministry 

files. I will not take any names so that you don't get a reason for disturbing. I expected Mr. Singhvi to be present here.

 He must have lost lakhs of rupees in arguing a free case today. ...(Interruptions)... 

 I am, actually, praising him. You don't want him to be praised. ...(Interruptions)... 

 He is a very good lawyer and he puts up the case very strongly. So strongly that for quite some time, even I was getting convinced by the argument. Probably, I now understand how convincing he is. But, Sir, many times it so happens that if the...(Interruptions)... 

 He is a very good lawyer and he puts up the case very strongly. So strongly that for quite some time, even I was getting convinced by the argument. Probably, I now understand how convincing he is.

Sober but Raksha Mantri put across his point

                                  

But if the brief is very weak, even the best advocate can't win the case. 

While I was listening to him, I remembered a story which I had read in my childhood of Badshah Akbar and Birbal. One day it happened that a golden spoon was stolen from Badshah's mahal. He didn't want it to be given for criminal investigation at that time because that would put him in a very embarrassing situation. So he called Birbal and told him that someone has stolen a golden spoon from his cutlery. 

What do I do? 

Birbal told him, 'I will find out the solution. Get all the servants.' He called all the servants and gave them one feet long piece of bamboo and told them that it was a magic bamboo. He told them to take it home,  He told them that it was a magical bamboo piece. Everyone believed Birbal and they went home. 

The one who had stolen the golden spoon, was a worried man. He could not sleep up to 2 o' clock. Then he suddenly got an idea. He got up at 2 o'clock, brought a knife and cut his bamboo by four inches, .......(interruptions ....)

Next day morning, of course, he got caught. What I find in their argument is that they have cut all their bamboos by four inches. ...(Interruptions)... Sir, I am placing herein the statement of facts of the case in detail. .... A litany of omissions and commissions at various stages of the decision-making process indicates mala fide and corrupt actions, driven by the goal to favour a particular vendor. 

This has been recognised by the Italian court in their judgement. At the outset, it may be useful to highlight to hon. Members, some of the salient issues. ... 

                                                                                                                  

Creation of a single vendor scenario. At various stages from March, 2005 onwards, and despite specific direction to the contrary, ORs (Operational Requirements) and SQRs were set, amended and processes influenced to make AWIL, the "only alternative". Violation of accepted norms of procurement processes. Unusually, a 

large number of deviations approved, counter-party to the supply agreements and exceptional dilution of FET standards.

......for the then Indian authority to ask the CBI to investigate. ...(Interruptions)... 

Cancellation of deal spurred by actions of supplier. The Deal was cancelled by the Government of India under advice from the A.S.G., not as a suo motu action, but in response to the vendor, seeking the appointment of an arbitrator. ...(Interruptions)... 

Delay in action against the supplier Group. From the first media report, in February, 2012, the approval to cancel all dealings with the Group was given more than two 

years later on the eve of change in Government. ...(Interruptions)... In fact, 

the final order was given by the present Government. ........ 

It is also significant to note that the judgement of the Italian court which spurred action from the Government of India was... ...(Interruptions)... 

spurred action from Government of India 

was based inter alia on the CAG Report from India. 

...(Interruptions)... 

Conduct of trials in India is 

extremely critical, especially, for helicopters meant to carry VVIPs because the terrain, climate and topographic conditions greatly vary with those of 

USA and UK. This crucial aspect has been given a go-by by permitting trials 

in foreign lands. The serious nature of deviations from standard FET 

conditions for the AW-101 in terms of trials being held outside India and not 

on the actual helicopter was exacerbated by the fact that even at the time of 

FET, the Augusta Westland helicopter was in developmental stage. 

............ 

Mr. Deputy Chairman, Sir, this created some problems when the three 

helicopters were received and were being put on test trials. I will just read 

one para from a file of Air Force where the trials were taking place. I will 

read one para only. I quote, "At Srinagar, 5,400 feet above the sea level, effective payload of this helicopter is nil in OGL configuration at all ranges of temperature. Even in IGE configuration, a reduced payload is to be accepted. The common VVIP sorties to Nehru Helipad cannot be undertaken. Similar is the case of Gulmarg, Pahalgam where VVIP sorties have been flown in the past using Mi-17iv helicopter." This file luckily was saved from a devastating fire which took place on 3rd of June, 2014 which 

burnt down all the records in that particular office. But this file remained in 

the drawer of the officer. 

So, it survived. ...(Interruptions)... This could not 

be further verified because obviously the helicopter was stopped from 

testing after that. ...(Interruptions)... 

 Additional commercial quotes sought from both the vendors. Third, 

acceptance of the partial compliance of the two SQRs in respect of AW-101 

non-VIP version helicopter. Neither S-92 nor AW-101 fully complied with 

SQR in the FET. 

However, AW-101 was recommended for induction in spite 

of emerging as a single vendor by waiving off two parameters, while no such 

concession was granted to S-92. The warranty of 'three years/2000 hours 

whichever is earlier' on the airframe and 'three years/1200 hours whichever is 

earlier' on the engine offered by M/s Sikorsky and 'three years/900 hours 

whichever is earlier' offered on the whole helicopter by M/s AWIL was 

accepted instead of RFP stipulation of 'three years/900 hours whichever is later'. Acceptance of option clause for three years instead of five years. 

Inclusion of additional items such as Traffic Collision and Avoidance System, 

Enhanced Ground Proximity Warning System for all 12 helicopters and 

Medevac system for 8 VVIP helicopters at CNC stage. ...(Interruptions)... 

Deletion of Active Missile Approach Warning System, Incorporation of Rear 

Air Stairs in 04 non-VVIP helicopters. ...(Interruptions)... Completion of 

helicopter delivery in 39 months instead of 36 months. 

The accepted principle in procurement is that deviations must be approved only under exceptional circumstances, for robust rationale and exercising extreme caution. ...(Interruptions)... The numerous deviations approved appear to flout this norm, as has also been pointed out by the Comptroller and Auditor General in their report. 

That CAG Report has highlighted that the allowed offsets were not compliant with DPP and many Indian Offset Partners were not eligible. Augusta Westland gave a year-wise breakup of work from 2011 to 2014 to be executed by IDS Infotech under this 

offset programme even though the work has been completed well before the 

conclusion of the contract in 2010. 

Now, this is very important. Investigation in the matter so far revealed involvement of IDS Infotech as a conduit for transfer of bribe money. We have already got court orders on that too. I would explain what action we have taken on that. 

 The benchmark cost arrived by CNC was unreasonably high and had 

provided no realistic basis for price negotiations. The benchmark cost as 

worked out by CNC was Euro 727 million, approximately, Rs. 4,877.50 

cores, which is six times the estimated total project cost of Rs. 793 crores, 

in January, 2006, wherein the estimated unit cost of AW-101 – this is very 

important – was considered as Rs. 100 crore, approximately Euro 15 million, 

at the time of SOC. When the recommendation was given for acceptance of 

RFP, this was the price quoted by the Air Force – Rs. 100 crores, that is, 

Euro 15 million. The CAG Report has stated that the base price of US $ 27 

million for the year 2000 was adopted by CNC, while the base price of AW- 101 VIP helicopter was US $ 18.2 million in the year 2010, as seen from the Internet. 

                                               

                                                      (BJP MP created Swamy-phobia in Rajya Sabha)  

Even the Air Force has estimated it as 15  million dollars in 2006. It is there on the records....

I am reading from the CAG Report. I would provide whatever clarifications you may need later. ...(Interruptions)...  MoF, in their observation on CCS note, stated that they are unable to support the proposal. The Ministry of Finance also asked that a response to the letter of the MP, Nathubhai G. Patel to the CVC may be 

incorporated in the final CCS note along with MoD’s response thereon. 

Similar concerns were raised by the MP before the CVC, stating that 

the case is in violation of CVC norms. The CCS approved the proposal for procurement of 12 VVIP and VIP helicopters from Messrs Augusta Westland, UK, in the meeting held on 18th January, 2010, for the following reasons:

(i) Augusta Westland helicopters have been selected after multivendor competition bid, for which RFPs have been issued to six vendors, out of which only two vendors responded. (ii) Augusta Westland helicopter was the only helicopter that met the SQRs framed for the VVIP version and the operational requirements of the IAF. The other helicopters participating in the trial did not meet the SQR. (iii) The present fleet of VVIP helicopters will complete their total technical life in the year 2010.