Italian court verdict in chopper deal has no bearing here: ED

The recent judgment passed by an Italian court in the Rs 3,600-crore VVIP chopper deal case acquitting two foreigners of graft charges does not have any bearing here in the probe into a money-laundering matter, the Enforcement Directorate today told a Delhi court.

The probe agency's submission came while opposing a plea of businessman Gautam Khaitan arrested for alleged money laundering in the chopper deal. Khaitan in his plea has sought bail and permission to place some "fresh facts" about Italian court's order and documents.

The Enforcement Directorate (ED), in its reply, sought to dismiss Khaitan's application for bail and for submitting new facts on the ground that it was an attempt to "frustrate" the proceedings and the probe under the Prevention of Money Laundering Act (PMLA).

"These so-called/alleged new facts by the applicant does not have any bearing on the disposal of the bail application as the same does not in any way relate to the investigation done by the ED in India under the PMLA," ED's prosecutor Naveen Kumar Matta said.

ED's Assistant Director Vikas Mehta, the investigating officer in the case, said in the reply that Khaitan has not disclosed "entire facts" to the court in his bail application.

"The annexures placed along with the application suggest that the Italian court held that the corruption charges still stand, which are there due to falsification of invoices and ordered jail for two years. Besides, the ED is investigating the matter under the PMLA.

"In none of the reports submitted by the applicant, it is mentioned that the Italian court has also exonerated the applicant and other persons based in India," the reply said, adding the ED is yet to get the Italian court's order copy.

Khaitan had, in his fresh plea, said that in a similar case, the Italian court has passed a verdict exonerating two foreign nationals accused of bribery and corruption in India and in view of this, the ED's allegation that he had received kickbacks now stands "eroded".
The court, after hearing the arguments, reserved its order for tomorrow on Khaitan's bail plea.

The ED prosecutor argued that there is a likelihood of Khaitan fleeing from justice, tampering with the evidence and hampering the ongoing investigation which is at a crucial stage and some persons are yet to be investigated.

The Italian court had on October 9 acquitted former Finmeccanica CEO Giuseppe Orsi and ex-AgustaWestland head Bruno Spagnolini of corruption charges in the chopper deal with India.

They, however, were sentenced to two-year jail term on lesser charges of falsification of invoices.

Tge ED had earlier opposed Khaitan's bail plea alleging that he was "actively involved" in the illegal transactions relating to proceeds of crime and he was one of the beneficiaries of the entire deal.

The ED had alleged the agency was probing the case in which 70 million Euros were paid as "kickbacks" and it was investigating the money trail and also the proceeds of crime.

The ED had earlier submitted Khaitan was on the board of Chandigarh-based company Aeromatrix which was allegedly a front firm for the financial dealings in the chopper deal.
Khaitan was arrested by the ED under the PMLA. The ED had lodged a case in July against Khaitan, former IAF chief S P Tyagi and 19 others in the VVIP chopper deal case to probe alleged kickbacks.


The ED had earlier said Khaitan was one of the directors in Aeromatrix and he resigned from the post after the Italian police started its probe into the chopper deal.
It had said a reference to Khaitan was also reportedly made in Italian prosecutor's report filed in a court there.

He was earlier questioned by CBI in this case. ED had registered a case in this deal under the PMLA, taking cognisance of a more-than-a-year-old CBI FIR.

ED has booked S P Tyagi, his family members, European nationals Carlo Gerosa, Christian Michel and Guido Haschke, four firms--Italy-based Finmeccanica, UK-based AgustaWestland and Chandigarh-based IDS Infotech and Aeromatrix, two companies based in Mauritius and Tunisia, a few other firms and unnamed persons in its criminal complaint.

The supply of 12 VVIP helicopters from AgustaWestland came under the scanner after the Italian authorities alleged that bribe was paid by the company to clinch the deal.

The Italian prosecutor, who carried out the preliminary inquiry, alleged the CEO of Finmeccanica, the parent company of UK-based AgustaWestland, had used the services of middlemen to bribe Indian officials.