Italian businessman Ottavio Quattrocchi, an accused in the Bofors payoffs case, has been taken off the CBI list of wanted persons, sparking a protest by Opposition parties which on Tuesday demanded an immediate probe into the Workingof the agency for the last five years.

Following a communication from the CBI, the Interpol has taken Quattrocchi's name off the Red Corner notice lingering for the last one decade.

Arun Nehru: Q caused Rajiv-Arun Singh rift
Seema Mustafa
Source: Asian Age
13/01/2006 Type: Website English
Keywords:

http://www.asianage.com/
Arun Nehru: Q caused Rajiv-Arun Singh rift
- By Seema Mustafa
New Delhi, Jan. 12: Italian businessman Ottavio Quattrocchi was one of the primary reasons for major differences between former Prime Minister Rajiv Gandhi and his two close friends at the time — Mr Arun Nehru and Mr Arun Singh. Breaking his long silence on the issue, former minister Arun Nehru told this newspaper that Mr Quattrocchi was a "close friend" of Mrs Sonia Gandhi and her family in Italy, and that Rajiv Gandhi had intervened directly for him as well as for the Bofors deal.
Mr Quattrocchi is back in the eye of the Bofors storm with Union law minister H.R. Bhardwaj confirming that the government had informed the British Crown authorities that the CBI had found no evidence against Mr Quattrocchi in the howitzer case that had brought down the Rajiv Gandhi government. He said that it was now for the British authorities to take a decision about de-freezing the Italian businessman's accounts. He further said in response to questions from reporters that the government had decided not to appeal to the Supreme Court against a high court order quashing the proceedings against the Hinduja brothers in the Bofors pay-off case as there was no case against them. In effect, the UPA government has chosen to preside over what it hopes will spell the "closure" of the Bofors case.
Mr Nehru said that the Bofors deal was behind minister of state for defence Arun Singh's resignation. A Bofors team was to visit India at the time, he recalled, but then was told not to come because of the controversy raised over a Swedish radio report confirming that kickbacks had been paid for this defence transaction. In an effort to get the deal through, Rajiv Gandhi, Mr Nehru said, decided to refer the matter to the defence ministry to speak out in favour of the deal, citing security reasons. However, the then Army Chief gave the opinion that security would not be compromised if the guns were not purchased. Mr Nehru said then defence minister of state Arun Singh backed the Army Chief on this. He said that Rajiv Gandhi was upset and noted that the minister of state should not worry about implications, or words to that effect. Mr Arun Singh, he said, resigned.
Mr Nehru also pointed to a definite incident indicative of Mr Quattrocchi's influence during the Rajiv Gandhi government. He said that Mr Quattrocchi had put tremendous pressure on Prime Minister Rajiv Gandhi for securing the 1,700-km HBJ pipeline (over Rs 700 crores). The competition was between the Italian company Snamprogetti that he represented in India, a French firm Spiecabag and a Japanese company. The French firm had quoted a price Rs 150 crores lower than Snamprogetti-led consortium. Mr Nehru said that he was told by Rajiv Gandhi that Mr Quattrocchi was alleging that there was a "CIA conspiracy" against him, and he was asked to examine the deal. He said that he spoke to the Cabinet Secretary, met Mr Quattrocchi himself and also spoke to then finance minister V.P. Singh. "V.P. Singh said it was difficult (for Snamprogetti to get the deal) so I told him put it on the file," Mr Nehru said. He said that later he received a call from Mr Singh saying that the Prime Minister had called him on the issue. "I told him that he should put it down on a piece of paper," he recalled. The deal eventually went to the French company even though the government appointed a committee in what was then seen as an attempt to reverse the decision of the petroleum ministry. It did not work.
Mr Nehru said that Mr Quattrocchi, then working for Snamprogetti was a "close friend of Mrs Sonia Gandhi and her family." Incidentally, in an interview to this correspondent the Italian businessman operating out of Delhi at the time had confirmed his links with Mrs Sonia Gandhi, admitting that he knew her and her family and was a regular visitor to their house.
Swedish police officer and principal investigator in the Bofors-India howitzer case Sten Lindstrom had told this newspaper in April 2004 in Stockholm that it was imperative that Mrs Sonia Gandhi was questioned to arrive at answers to the questions: Who introduced Ottavio Quattrocchi to Bofors officials, why did Bofors pay him, what services did his company A.E. Services offer, what are the links between him and Sonia Gandhi? He said that Sweden's Economic Crimes Bureau received definite information in 1997 that Mr Quattrocchi was one of the recipients of the kickbacks, and that part of the money paid for the howitzer deal went as a gift to him. Mr Quattrocchi is now believed to be in Italy. He was in India for almost 28 years between 1964 and 1993.