The money-laundering case stems from a Central Bureau of Investigation (CBI) FIR of 2019
Assets worth Rs 8.7 crore have been attached under the anti-money laundering law in a case of alleged corruption involving London-based Rolls Royce, which is said to have paid around Rs 80 crore as commission to an agent to bag contracts from public sector undertakings such as HAL, ONGC and GAIL, the Enforcement Directorate said on Friday.
A provisional order under the Prevention of Money Laundering Act (PMLA) was issued against Mumbai-based Turbotech Energy Services International Private Limited (Turbotech) and Ashok Patni.
The case pertains to an instance where Rolls Royce "admitted that it had made commission payments to Ashok Patni and his associated entities in violation of the integrity pact in respect of various purchase orders placed before ONGC, HAL and GAIL".
"It also confirmed the payment of the settlement amount of about Rs 80 crore to ONGC, HAL and GAIL against the value of commission or fees paid to Ashok Patni, which are proceeds of crime in this case," the Enforcement Directorate (ED) said in a statement.
However, the agency said, the investigation to ascertain whether Rolls Royce has made commission payments in other purchase orders or contracts in violation of the terms of the contracts is under progress.
The money-laundering case stems from a Central Bureau of Investigation (CBI) FIR of 2019 and the alleged incident pertains to the years between 2000 and 2013.
Rolls Royce, according to the ED, had entered into agreements with the Hindustan Aeronautics Limited (HAL), the Oil and Natural Gas Corporation (ONGC) and the Gas Authority of India Limited (GAIL) for the supply of spare parts and services. "Rolls Royce appointed Ashok Patni, director of Aashmore Private Limited, Singapore, as commercial advisor in India for providing sales, logistic support, local business expertise and strategic advice in violation of terms and conditions of purchase orders (POs) and integrity pact with HAL/ONGC/GAIL.
"In case of supply of spare parts and services, Rolls Royce paid commission to Ashok Patni at the rate of 10-11.3 per cent of the value of purchase orders, which was not declared prior to execution of contract," the federal agency said.
The probe revealed that Turbotech, owned by the Patni family, was appointed as the sales representative and commercial advisor to Rolls Royce in India in 2008 for making commission payments in the garb of "sham" contracts, the ED said.
"A part of payment made by Rolls Royce to Ashok Patni and his associated companies is suspected to have been paid as kickbacks to unknown officials of HAL, ONGC and GAIL involved in the procurement process," it added.
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