VVIP chopper deal: ED files 2nd charge sheet; names Michel

The ED has filed a second charge sheet in the Rs 3,600 crore VVIP chopper deal naming British national and alleged middleman Christian Michel James, his two Indian associates and an Indian company for the first time in connection with its money laundering probe.
The 1,300 page prosecution complaint (ED's equivalent for charge sheet) of the Enforcement Directorate(ED) was placed before a special Prevention of Money Laundering Act (PMLA) court here last week.
It has said that the agency's investigation into the case has found that Michel allegedly received Euro 30 million (about Rs 225 crore) from Ms AgustaWestland which was nothing but "kickbacks" paid by the firm to execute the deal for sale of 12 helicopters to India in favour of the firm in "guise of" of genuine transactions for performing multiple work contracts in the country.

The court is expected to soon take cognisance of the supplementary charge sheet, agency sources said today.
Apart from Michel, the agency has named Ms Media Exim Private Limited and its directors, R K Nanda and J B Subramaniyam in the charge sheet. The firm was created by Michel along with the two individuals.
Michel is one of the three middlemen being probed in the case, apart from Guido Haschke and Carlo Gerosa, by the ED and the CBI. Both the agencies have also notified an Interpol Red Corner Notice (RCN) or the global arrest warrant against him after the court issued a non-bailable warrant against him.

Michel was extensively interviewed by Indian media in Dubai recently and the agencies want him to join the probe.

The second charge sheet delves into the detailed role of Michel in the deal, his multiple visits to India and his transactions. The first charge sheet in the case was filed in November, 2014.
It is understood that filing a charge sheet against Michel was necessary as ED has sought his extradition from the UK and hence such a court complaint against an accused is necessary in order to execute the treaty between the two countries.
The agency has also brought on record, in the charge sheet, that the three middlemen "managed to" make inroads into the Indian Air Force in order to influence and subvert the stand of the air force regarding reducing the service ceiling--the altitude at which a helicopter can fly--of the helicopters from 6,000 metres to 4,500 metres in 2005 after which AgustaWestland became eligible to supply the dozen helicopters for VVIP flying duties.

(REOPE DEL 80)
The PMLA probe found that AgustaWestland CEO Bruno Spagnolini was allegedly paying "kickbacks" to Michel and the other two middlemen in the guise of numerous "consultancy contracts" and Michel alone received Euro 30 million in his Dubai company accounts and others under this arrangement.
The agency has also detected that the media firm floated by Michel in Delhi, was nothing but a "shell company" to "launder the proceeds of crime."
As per the investigation, it was found that "out of the alleged kickbacks received by Michel, an amount of Rs 6.33 crore was routed to India through his shell company Ms Media Exim Pvt Ltd from his Dubai based company Ms Global Services FZE, Dubai.

"Nanda and Subramaniyam were appointed as directors of Ms Media Exim Pvt Ltd who willingly connived with Michel and helped him in acquiring various immovable and movable properties/assets in Delhi which has already been attached by ED," it said.
At least two other associates of Michel in Delhi and the media firm, whose assets were attached by ED last year, have been named in the charge sheet along with the statements made by various people connected to the British national, including his driver Narayan Bahadur.
The probe also found that Michel had hired a firm to provide him from India an analysis of market publications related to manufacturing industry active in Indian defence arena, the economic and financial trends in the country and overall views on private sector participation in its defence and manufacturing industry.

The probe in the deal had been in news recently after Milan-based court sentenced Italian defence and aerospace major Finmeccanica's former chief Giuseppe Orsi and Spagnolini on corruption charges in the sale of the helicopters to India.
The Milan court order also mentions the name of former IAF chief S P Tyagi at several points.
Post this, both ED and CBI, began a fresh round of questioning the accused and collection of further evidences.
ED had registered a PMLA case in this regard in 2014 and named 21 people, including Tyagi in its money laundering FIR. It had also arrested Delhi-based businessman Gautam Khaitan in the case, who is out on bail at present.

It had earlier submitted that Khaitan was on the board of Chandigarh-based company Aeromatrix which was allegedly a front firm for the financial dealings in the chopper deal.
On January 1, 2014, India scrapped the contract with Finmeccanica's British subsidiary AgustaWestland for supplying 12 AW-101 VVIP choppers to the IAF over alleged breach of contractual obligations and charges of paying kickbacks to the tune of Rs 423 crore by it for securing the deal.
ED and CBI had also issued Letters Rogatory (judicial requests) to multiple countries to gather more leads and evidences in this case.
The agency said further investigations in the case are "in progress" and some charge sheets cannot be ruled out in the case.