Fresh trouble for arms dealer Sanjay Bhandari

Elusive arms dealer Sanjay Bhandari is in further trouble with the CBI registering a fresh case against him for allegedly receiving USD five million from Samsung Engineering Co Ltd to woo officials for an ONGC project in Gujarat's Dahej.

The registration of the case came after a preliminary inquiry suggested money changing hands to swing the deal. Bhandari, who is believed to be in London, is facing several cases related to corruption in arms deals registered by the CBI, Enforcement Directorate and Income Tax Department.

The fresh FIR has also named the then Senior Manager of Samsung Engineering Co Ltd (SECL) Hong Namkoong, UK-based Foster Wheeler Energy Ltd and Bhandari's UAE-based company Santech International FZC besides unidentified officials of ONGC and its special vehicle ONGC Petro Additions Ltd (OPAL) among others. A consortium of M/s Linde, Germany, and M/s SECL had won the contract.

According to the FIR, Bhandari as Director of Santech International entered into a criminal conspiracy with SECL and other unknown officials of ONGC/OPAL

He allegedly charged a consultancy fee of USD 49.99 lakh from it, in violation of the integrity clause in the contract agreement between the Korean major and OPAL, they alleged. The investigators claimed that Bhandari had acquired a property in London's Bryson Square using the money. ED had earlier claimed that the property has links to Congress president Sonia Gandhi's son-in-law Robert Vadra.

The alleged consultancy fee was received in overseas accounts of Bhandari's Santech International, the FIR claimed.

The amount received by Bhandari was to "induce unknown public servants to show undue favour to the consortium of Linde-SECL" in awarding the contract of OPAL's Dual Fuel Cracker unit to be set at Dahej Petrochemical complex in Gujarat.

During investigations, it came to light that Bhandari had email exchanges with Hong NamKong of SECL regarding the Dahej project, and one of the communications on 3 April, 2008 had an attachment 'Consulting Service Agreement' between both the parties.

However, the agreement signed between SECL and OPAL had said that the former had not indicated in the bid about the involvement of any agent or consultant or payment of any remuneration for the project in India or abroad.

Later enquiries made it clear that SECL transferred USD 49.99 lakh in the account of Bhandari's company soon after it received advance payment from OPAL.

The FIR said Bhandari acquired a property on Brynston Square in London by purchasing 100% shares of M/s Vertex Management Holding in his own name for 19 lakh pounds.

"The deal was stipulated to be completed on or before end of August 2009 ie just after the transfer of Rs 22 crore (USD 50 lakh) on 13 July, 2009 in the account of the company associated Bhandari," it said adding the property on Bryson Square was sold to Skylite Investments FZE, UAE during 2011-12.