The Supreme Court has effectively closed the politically sensitive Bofors pay-off case. On Thursday, it dismissed the only surviving appeal against a 2005 Delhi High Court judgment. The High Court had quashed all criminal proceedings against the three Hinduja brothers and Swedish arms manufacturer AB Bofors.
A bench of Justices JB Pardiwala and K Vinod Chandran refused to grant more time to advocate and BJP leader Ajay K Agrawal, who had challenged the High Court's ruling. The judges noted that the appeal had remained pending since 2018. They also questioned whether a private individual could continue the case after the Central Bureau of Investigation (CBI) had already lost its own challenge.
Bofors Scandal That Shook Rajiv Gandhi Government
The Supreme Court's decision brings an effective end to one of India's longest-running corruption cases. The controversy began nearly four decades ago and involved allegations of kickbacks in the â‚ą1,437-crore Bofors gun deal.
The scandal seriously damaged the image of then Prime Minister Rajiv Gandhi. It also became a major issue during the 1989 Lok Sabha election campaign. The Bofors controversy is widely regarded as one of the factors that contributed to the Congress party's defeat that year.
Supreme Court Rejects Bofors Appeal Adjournment
Agrawal appeared virtually before the Supreme Court on Thursday. He requested four weeks to remove the names of two deceased respondents from the case. They were Srichand P Hinduja and Gopichand P Hinduja. Prakash P Hinduja, who currently serves as chairman of Hinduja Group in Europe, was another respondent.
The bench questioned why the proceedings should continue. “What is all this about the Hinduja brothers and CBI?” it asked. The judges were informed that the Delhi High Court had already cleared the accused by quashing the criminal proceedings. The bench then questioned the long delay, saying, “All proceedings were quashed. What is this? How many years have passed?”
Agrawal referred to the 1986 defence deal and tried to explain why the CBI's separate appeal had earlier been dismissed. The bench, however, refused to reconsider the issue. “No, no...dismissed,” the judges said.
When Agrawal sought more time to make further submissions, the bench refused to adjourn the matter. “No question of adjournment. It is a 2018 matter,” the court said before dismissing the appeal.
2005 Delhi High Court Bofors Judgment
The latest Supreme Court order ends the litigation arising from the Delhi High Court's May 31, 2005 judgment. Justice RS Sodhi had quashed all charges against Srichand, Gopichand and Prakash Hinduja. The ruling also cleared AB Bofors of criminal proceedings. The High Court strongly criticised the CBI's handling of the investigation and prosecution. It observed that the investigation had cost the public exchequer nearly â‚ą250 crore.
CBI Bofors Appeal Dismissed in 2018
The CBI had separately challenged the 2005 High Court judgment. However, the Supreme Court rejected the agency's appeal in November 2018. The court cited the CBI's delay of 4,522 days in approaching it. The judges said they were “not convinced” by the reasons given to explain the extraordinary delay. The court allowed the CBI to present its arguments through Agrawal's pending appeal. However, the Supreme Court had already questioned Agrawal's legal standing in January 2018. The judges asked how a private individual could maintain a criminal appeal when the investigating agency itself had not successfully challenged the acquittal.
Bofors Gun Deal and Kickback Allegations
The controversy began with a â‚ą1,437-crore defence agreement signed on March 24, 1986. Under the deal, India agreed to purchase 400 155 mm howitzer guns from Swedish arms manufacturer AB Bofors. The scandal erupted in April 1987 after Swedish Radio reported that illegal commissions had allegedly been paid to influential Indian politicians and defence officials to secure the contract. The allegations triggered a major political controversy and led to a lengthy criminal investigation.
CBI Bofors Investigation and Chargesheets
The CBI registered an FIR in January 1990. The agency accused several people of criminal conspiracy, cheating, forgery and corruption. The initial accused included former Bofors president Martin Ardbo and alleged middleman Win Chadha. The CBI later filed additional chargesheets and named Italian businessman Ottavio Quattrocchi. The agency added the Hinduja brothers through a supplementary chargesheet in October 2000.
Why the Bofors Prosecution Collapsed
The Bofors prosecution gradually weakened as the legal proceedings continued for decades. In February 2004, Delhi High Court Justice JD Kapoor cleared former Prime Minister Rajiv Gandhi of criminal culpability in the case. The court, however, directed that a forgery charge be framed against Bofors. Ottavio Quattrocchi was discharged by a Delhi trial court in 2011 after repeated attempts to extradite him failed. He died in 2013. Several other key accused also died during the prolonged proceedings. They included Win Chadha, Martin Ardbo and former defence secretary SK Bhatnagar.
Bofors Case Gets Final Legal Closure
The Supreme Court's dismissal of Agrawal's appeal ends the last judicial challenge to the 2005 acquittal. The decision effectively closes the Bofors criminal case after almost 40 years. The controversy began with a defence deal in 1986. It later became one of India's biggest political scandals and influenced the 1989 general election. After decades of investigations, political battles and court proceedings, the Bofors case has now reached its final legal closure.