VVIP chopper scam: SP Tyagi admits links to 4 firms, Agusta meet

IAF ex-chief’s CBI questioning to go on today; ED probes middlemen’s role.

In an important revelation in the CBI’s probe into the multi-crore AgustaWest-land VVIP helicopter deal, the former Chief of Air Staff, Air Chief Marshal S.P. Tyagi (Retd), has admitted he had met the then chief operating officer of Finmeccanica, Agusta Westland’s parent company, in New Delhi in 2005.

CBI sources said that during questioning ACM Tyagi admitted he had met Finmeccanica officials, including its then COO Georgio Zapa, on February 15, 2005 while he was still in office.

The former IAF chief, who was questioned at the CBI headquarters here for the second day on Tuesday, has been asked to appear before the investigators on Wednesday as well. The CBI has also summoned Gautam Khaitan, former board member of Aeromatrix, one of the suspects, for questioning on Wednesday, ACM Tyagi’s cousins Sanjeev, Rajeev and Sandeep have been called later this week, possibly on Thursday.

Sources further said ACM Tyagi was evasive with CBI sleuths a day earlier, and that he admitted to the meeting only after being confronted with his visitor’s diary and other evidence. The sleuths are now trying to get details on his international travels, specially after his retirement. “The CBI officials want to know the reason behind his international travels, and also ascertain the identity of those who financed them”, a source said. CM Tyagi has also allegedly admitted to having a financial interest in four companies — Vanshi, Anuras, Shawan and Meghanshu. “These are Noida-based firms which are owned by Tygai and his family members. All these firms were allegedly incorporated after 2011 — four years after Tyagi retired from service”, a source claimed.

It was during ACM Tyagi’s tenure as Chief of Air Staff that the Air Force agreed to reduce the service ceiling for VVIP helicopters to 4,500 meters as mandatory “operational requirement”. ACM Tyagi took over as Chief of Air Staff on January 1, 2005, and Air Headquarters agreed to reduce the service ceiling and award the contract to AgustaWestland on March 7, 2005, sources said. The Milan court of appeals, the equivalent of an Indian high court, has given details of how alleged bribes were paid by helicopter-maker Finmeccanica and AgustaWestland to Indian officials through middlemen to clinch the deal. The order reportedly mentioned the name of ACM Tyagi at several points. The CBI on March 13, 2013 had booked the former IAF chief and 13 others on charges of bribery, cheating and corruption in the VVIP helicopter deal. The former chief, his cousins, Sanjeev alias Julie, Rajeev alias Docsa and Sandeep, European middlemen Gerosa, Michel and Haschke were among the 13 individuals named in the FIR as accused.

The Enforcement Directorate, which is also investigating the case, has initiated an inquiry to probe the allegations levelled by BJP MP Kirit Somaiya that the main commission agent in the deal, Christian Michel, had strong links with Congress leaders. Mr Somaiya said this in a letter to the chiefs of the CBI and ED. He has asked the CBI and ED to check the Congress leaders’ alleged links with a real estate developer allegedly involved in the CWG scam, and also the alleged links of some Congress leaders with a middleman in the AgustaWestland deal. Referring to his earlier letters, he said Haschke, an alleged middleman in the helicopter deal, was common in both the scams and that he is linked to Christian Michel. However, Michel’s lawyer, Rosemary Patrizi Dos Anjos, said on Tuesday that her client “is ready to come to India and face investigators provided he gets an assurance he will not be arrested”. She told a TV news channel from Milan: “He has arrest warrant and that is why he can’t go to India. He is not free to go. He would like to go and answer everything and tell the truth, but not with arrest warrant.”

In another development, the finance ministry has sought inputs from the defence ministry on a FDI proposal from AgustaWestland for its joint venture with Tata Sons to assemble helicopters in India. The finance ministry on Tuesday said the Foreign Investment Promotion Board, at its meeting on April 8, had deferred decision on the “post-facto approval” sought by the JV, but didn’t give reasons. “We are waiting for the defence ministry to finalise the definition of state-of-the-art. For a majority (beyond 50 per cent) FDI, that definition is necessary. Once the defence ministry finalises the definition, we will review the proposal once again,” said finance ministry officials. Indian Rotorcraft, a joint venture of AgustaWestland (a Finmeccanica company) and Tata Sons for setting up an assembly line for the AW119Ke helicopter, had sought post-facto approval from the FIPB to hike its FDI inflow to Rs 19.64 crores, against Rs 17.6 crores that was approved in September 2011.