PTI
 
New Delhi, Jan 18: CBI on Tuesday indicated it will question Italian businessman Ottavio Quattrocchi, an accused in Bofors case, in Italy and said it would begin a fresh probe into the trail of Rs 21 crore that was parked in two bank accounts in London.

Highly-placed sources told PTI that the CBI would now be conducting a fresh inquiry to trail the money that was stashed in the two London bank accounts which had remained frozen since July 2003.

The freeze on $ 1 million and three million Euro was withdrawn on January 11 by the British High Court after Additional Solicitor General B Dutta conveyed to Crown Prosecution Service of Britain that there was no evidence to link the money in the two accounts with the Bofors case. The money has reportedly been transferred by Quattrocchi from the London accounts.

The sources said the CBI would do everythng possible to trace the movement of the money to the account, which included questioning Quattrocchi, if required.

Asked whether this was in respone to Quattrocchis statement yesterday that he would consider being questioed by CBI in Italy, the sources said the move was not in response to any statement but to bring the case to its logical conclusion.

Meanwhile, Dutta, who visited London to communicate to the Crown Prosecution Service (CPS) about non-availability of evidence linking the money with the Bofors scam, has reportedly told CPS that there was no longer a reasonable prospect of the case against Quattrocchi procceding to trial.

In its communication in December 2005, the CPS had sent an e-mail to CBI Director (Prosecution) S K Sharma that "Mr Dutta conveyed his instructions on behlf of the Government of India, the Ministry of Justice and the CBI that no useful purpose will be served by maintaining the restraint order of July 25, 2003 as there is no longer any reasonable prospect of the case against Quattrocchi proceeding to trial."

"I understand that this conclusion was reached following the judgement of the Delhi High court in May 2005 and the opinion of Additional Solicitor General K P Pathak, both of which have been endorsed by the Director of Prosecution, CBI," the e-mail of the CPS said.

Just who is Ottavio Quattrocchi?

Rediff Special/ George Iype

The shadow of the gun once again looms large over the Indian political scenario, nearly two decades after the Bofors scandal first rocked India in general and the Congress in particular.

Recently, the United Progressive Alliance government wrote to the Swiss and British governments that it has no evidence against Italian businessman Ottavio Quattrocchi, one of the main accused in India's most long-running bribe scam in a defence purchase.

Thus, B Datta, additional solicitor general of India, officially requested the foreign governments to allow Quattrocchi access to his frozen bank accounts. The high court in London ordered the 'defreezing' of Quattrocchi's two British bank accounts.

On Monday, India's Supreme Court directed the Indian government to take steps to maintain the status quo and ensure the frozen accounts are not unlocked.

But Britain's Crown Prosecution said on Tuesday that banks in that country were not bound by the Indian Supreme Court's direction that Quattrocchi should not withdraw money from his accounts in London.

Here is a rediff.com primer on the controversial foreign businessman:

Just who is this guy?

Ottavio Quattrocchi was the India representative of Snamprogetti, a Milan-based Italian multinational company involved in engineering and construction projects.

Quattrocchi was Snamprogetti's Asia representative for 16 years, till the late 1980s.

It is said that during his tenure, he won as many as 60 projects worth Rs 300 billion from across Asian countries for Snamprogetti.

How is he linked to the Bofors guns scandal?

The scandal erupted in 1987 when Swedish radio revealed that Bofors -- facing stiff international competition -- had paid more than $50 million in bribes to secure a contract for the sale of field guns worth $1.4 billion to the Indian Army.

Then prime minister Rajiv Gandhi was named one of the suspects in the scam.

Other suspects in the scandal included Quattrocchi, an Indian arms agent called Win Chadha and Martin Ardbo, the Bofors chief.

How could an Italian businessman be the middleman between the Indian Army and Bofors, which is a Swedish company?

The answer lies in Quattrocchi's proximity to the Gandhi family. It is said he became close to the Gandhi family because Sonia Gandhi, Rajiv Gandhi's wife and now the Congress party president, hails from Italy.

Quattrocchi shifted to India soon after Rajiv married Sonia.

But was he politically so well connected in India to be part of a defence deal?

It is alleged Quattrocchi was so influential with the office of the prime minister -- Rajiv Gandhi -- that bureaucrats used to stand up when Quattrocchi visited them.

It is also alleged he could get ministers and bureaucrats sacked if they snubbed or challenged his authority.

Did the Central Bureau of Investigation dig up proof of Quattrocchi's involvement in the Bofors scandal?

The CBI's Bofors chargesheet against Quattrocchi claimed he was one of the beneficiaries of the bank accounts into which kickbacks in the Bofors deal were deposited.

The CBI said AE Services, a firm owned by Quattrocchi and his wife Maria, had received illegal payments to the tune of $7 million from the Swedish arms manufacturer.

If Quattrochi was in India, why wasn't he arrested?

When the Swiss authorities formally communicated to the Indian government in 1993 that the kickbacks in the Bofors case were deposited in Quattrocchi's accounts, a Congress government -- headed by P V Narasimha Rao -- was in power. The Opposition immediately wanted the government to impound Quattrocchi's passport and arrest him. But that was not done, and he was allowed to leave the country.

Where did he flee?

He left India for Malaysia on July 29, 1993. This forced the CBI to ask the Malaysian authorities and go through the elaborate legal requirements of that country in order to get Quattrocchi to face trial.

The CBI's efforts to get Quattrocchi extradited to India have not yet succeeded.

The Interpol too wanted Quattrocchi. The international agency's notice on him said: 'Quattrocchi and his wife were involved in fraud and bribery committed in India between 1982-1987. A percentage of the money paid by the Indian government was illegally transferred by the AB Bofors Company to bank accounts in Switzerland, to the benefit of certain Indian public servants and their nominees.'

Does the Manmhohan Singh government's 'clean chit' to Quattrocchi absolve him of all charges?

Yes, in a way. Prime Minister Singh said the action of defreezing Quattrocchi's London bank accounts was taken by the CBI in consultation with law officers.

What does the man himself have to say?

In a statement issued from Milan in Italy this week, Quattrocchi said: 'I believe it would be in interest of justice and India's reputation if this case against me is brought to an end.'