The link between the late prime minister, Rajiv Gandhi, hawala scamster S.K. Jain andthe controversial representative of the Italian government-owned Snamprogetti, OttavioQuattrocchi, appears to have been firmly established by the recent investigations. Infact, sources say Jain has told the CBI that he "met Quattrocchi at Rajiv Gandhi'sresidence".
Given the political overtones of the scam, these revelations are especiallysignificant. Investigations further indicate that Quattrocchi, who was close to the lateRajiv Gandhi and his wife Sonia, played an important role in the alleged pay-offs by theJains to the former prime minister.
Jain has also blown the whistle on at least one deal involving Gandhi andQuattrocchi. He told the CBI that the Snamprogetti executive acted as a middleman between Gandhi and two firms—the French Ceglec Alsthom and the Swedish Scnca—for mega powerprojects (worth Rs 2,000 crore) at Dulhasti and Uri, respectively. Gandhi cleared bothprojects. The Jains, for their part, sought Quattrocchi's help to bag steel industrycontracts.
CBI investigations have revealed links between Jain, Madras-based hawala dealer AmirBhai, an Italian national, Gerni, and Quattrocchi. Jain told the CBI that he establishedlinks with Quattrocchi who later introduced him to Gerni, who was interested in theRourkela steel plant. Gerni, Quattrocchi and Jain were neighbours in Delhi and met often.Quattrocchi was also in touch with Amir Bhai, a conduit for slush money to politicians.
Quattrocchi first hit the headlines with the Bofors scandal and it was alleged that hehad received kickbacks on behalf of Rajiv Gandhi. His name appeared as "Mr Q" inthe diary of Martin Ardbo, a former AB Bofors executive. "RG", decoded as RajivGandhi, is also mentioned in the diary.
A Swiss court confirmed that Quattrocchi was one of the seven appellants in the Boforsdeal who had requested that information regarding their Swiss bank accounts be withheldfrom the Indian authorities. The Opposition demanded Quattrocchi's arrest, but theGovernment—headed by Narasimha Rao—did not comply.
Despite warnings that Quattrocchi might leave the country, the Government took noprecautionary measures and in July 1993 he quietly slipped away to Italy. At the time, thehawala scandal had not been publicised. It was only after S.K. Jain was arrested in 1995that the Italian connection came to light.
