Ready to return Rs18-cr commission on HAL contract: Rolls-Royce
10 Mar 2014
Faced with allegations of bribery in the supply of aircraft engines to state-owned Hindustan Aeronautics Ltd (HAL), British firm Rolls-Royce has written to HAL that it paid only £1.8 million (Rs18 crore) as commission to an agent and that it was ready to return that amount to the government.
The offer comes after the defence ministry ordered a probe into Rolls-Royce's alleged hiring of middlemen in contracts worth around Rs10,000 crore for supplying aircraft engines to HAL.
CBI has already started the process of registering a preliminary enquiry into the charges of bribery against London-based Rolls-Royce in the Rs10,000 crore deal, which is estimated to be around Rs1,000 crore (See: CBI to probe suspected kick-backs in HAL's Rolls-Royce engine deal).
In a letter to HAL dated 5 March, the UK company claimed that it has paid only £1. 8 million (Rs18 crore) as commission to its agent, Aashmore Private Limited, and that it was willing to return that amount to the Indian government, reports quoting government sources said.
HAL will be forwarding the letter to the government for further action on the matter, sources said.
Meanwhile, the defence ministry has frozen all existing and future deals with Rolls-Royce pending a probe into the allegations of bribery and use of middlemen in contracts for supply of aircraft engines to HAL.
The ministry has also asked HAL to take action to recover the money Rolls-Royce might have paid to commission agents.
Rolls-Royce in a letter written to HAL in December last had admitted employing Aashmore Private Limited a firm owned by Singapore-based Ashok Patni as "commercial advisor" in India, to provide sales and logistical support, local business support and "strategic advice".
The firm has informed HAL that it has paid commissions to Aashmore Private Limited for clinching military deals and the amount ranged between 10 and 11.3 per cent, which, in the case of the Rs10,000-cr HAL deal, works out to be over Rs1,000 crore.