Rolls Royce offers to return Rs. 18 crore paid as commission in defence deal

The firm has informed HAL that it has paid commissions to Aashmore Private Limited for clinching military deals and the amount ranged between 10 and 11.3 per cent, sources said.

HAL and Aashmore Private Limited have transacted business worth over Rs. 5,000 crore between 2007 and 2011, the sources said.

The commissions paid by the firm are in violation of the procurement rules in India which prohibit hiring of middlemen or commission agents while transacting deals with the defence ministry.

After ordering a CBI probe into the matter, the Defence Ministry sought the view of the Law Ministry for moving towards blacklisting the British firm but the Indian Air Force (IAF) was of the view that a delay in signing a maintenance contract with Rolls Royce will "impact the defence preparedness of the country."

The IAF had to sign an important contract with it for maintenance and overhaul of the six types of aircraft engines in the AJT Hawk, Jaguar, Avro, Kiran MkII and Sea Harrier military aircraft and Sea King helicopters.

India will also seek information from Britain where the Serious Fraud Office is investigating bribery charges against Rolls Royce in cases related to China and Indonesia, sources said.

The firm has also told HAL that it had severed ties with Aashmore and its owner in 2013.

The bribery allegations surfaced in the form of a letter received by HAL recently claiming that bribes were paid to officials in HAL and other departments concerned to bag contracts, the sources said.

An internal probe by the vigilance wing of HAL has prima facie established the charges, according to Defence Ministry sources.