India files bribery lawsuit against BAE Systems and Rolls-Royce | Business and Business News

The “criminal conspiracy” case is linked to the procurement and licensed manufacture of 123 modern jet trainers.

India has filed a bribery lawsuit against British companies BAE Systems plc and Rolls-Royce Holdings for “criminal conspiracy” in the procurement and licensed manufacture of 123 modern jet trainers, according to a federal police document.

The case is based on the findings of an investigation launched in 2016 by India’s Central Bureau of Investigation (CBI), the May 23 document said.

Rolls-Royce said Monday it would continue to assist Indian authorities in their investigation and that the allegations being investigated were disclosed in 2017 when the company paid a fine to UK authorities.

“Rolls-Royce is a fundamentally different company today. We do not tolerate business misconduct of any kind and are committed to upholding high ethical standards,” a spokesman for the blue-chip company told Reuters via email.

India’s Defense Ministry did not respond to a request for comment. BAE said it would be inappropriate to comment on an ongoing investigation.

The document, seen by Reuters, said the trainer’s makers paid commissions to intermediaries in violation of India’s defense contract rules. The middlemen helped them get the contracts by exercising “undue influence” on government officials.

It also said that Rolls-Royce India and its officials engaged in a criminal conspiracy between 2003 and 2012 with unidentified Defense Ministry officials and two middlemen over contracts related to the training aircraft.

In 2005, India signed a deal to purchase 24 Hawk 115 Advanced Jet Trainers for £734.21 million (US$926.65 million) and licensed the manufacture of 42 jets for £308.25 million (US$380.94 million). -dollars) as well as the supply of materials and technology transfer.

This was, according to the CBI in its document, “in lieu of huge bribes, commissions and kickbacks paid to intermediaries by said manufacturer and its officials.”

Between 2008 and 2010, the Indian government authorized the licensed manufacture of an additional 57 jets at a cost of 95 billion rupees ($1.16 billion) under a separate agreement with BAE Systems (Operations) Ltd.

In 2012, the UK’s Serious Fraud Office (SFO) launched an investigation into Rolls-Royce for payments related to transactions with countries including China, India, Indonesia, Malaysia and Thailand.

Rolls-Royce paid a £497 million ($614.19 million) fine in 2017 to settle the case with the SFO.