OPERATION WEST END

Consolidated into a single file by Sanjeev Sabhlok on 8 June 2011.

A story of how the suitcase people are compromising Indian defence Tehelka blows the cover off the unholy nexus of politicians, senior defence personnel and ubiquitous fixers who infiltrate and infest every defence deal. Floating a fictitious company flogging non-existent thermal imaging binoculars, the Tehelka Investigative Team encountered and cracked the closely guarded bastion of manufacturers, agents and their military and political patrons running up to the highest offices in the land.

This is the story of how we went about demolishing the last illusion of the Indian democratic state. It is a tale replete with appalling avarice, backstabbing, bribery and inducement. Shockingly, no one the investigation touched emerged untainted.

Investigated & written by

ANIRUDDHA BAHAL & MATHEW SAMUEL

Yossarian sidled up drunkenly to Colonel Korn at the officers' club one night to kid with him about the new Lepage gun that the Germans had moved in. 

"What Lepage gun?" Colonel Korn inquired with curiosity. 

"The new three-hundred-and-forty-millimeter Lepage glue gun," Yossarian answered.

"It glues a whole formation of planes together in mid-air." 

Catch 22, Joseph Heller

We at Tehelka.com managed to sell the Lepage 90, the ALION and the Krueger 3000 to the Indian defence establishment - ostensibly fourth generation hand-held thermal cameras and, needless to add, non-existent. 

This is the story of how we did it. 

It all started with Senior Section Officer P. Sashi, in the Ministry of Defence, wanting to make some money from arms dealers. We at Tehelka.com floated a fictitious arms manufacturing company, based in London, called West End International. We were in search of a product whose indent existed in the Indian Army. We also wanted to get an entry into the lowest end of the defence chain and work our way upwards through the Indian scenario of graft. Here Sashi, affter getting a monetary incentive, takes us to Brigadier Anil Sehgal's house in New Delhi. Sehgal is the deputy director in DGOS, a crucial army procurement post. Brigadier Sehgal and P. Sashi give us the two things that we need - a defence product and an entry into the gravy train.

P. SASHI (to Sehgal): Today we got that Malaysian binoculars. QA manual. Quality Assurance…call it as manual type. I think you might not have seen. Today there…there is a bunch of…one book, booklet is there. Sponsored by Malaysia….

BRIG. ANIL SEHGAL: I know. I've seen that. 

SASHI: Haan. 

BRIG. SEHGAL: …in which ADC has written that this should be handed over to W.E. 

SASHI: Haan, W.E. Of course. 

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TEHELKA: Sir, you have to tell us what are the things which, what we should do…because…this is a field…

BRIG. SEHGAL: This is a very vast field. It's a very, very vast field. 

TEHELKA: We are the people who have absolutely no…

[Sashi comes and sits next to Sehgal.] 

BRIG. SEHGAL: Okay. 

BRIG. SEHGAL (continuing where he left off): There is an annual requirement…what I foresee…at present, of present equipment of…about 10,000 II tubes per year. And in the next four to five years I have not yet calculated.

* * *

TEHELKA: Huge purchases. And those people who are geared…

BRIG. SEHGAL: …good period. I stay in the background…. What I am telling you, don't discuss it with anyone. It's just between…not meant for your ears also, but then…

SASHI: That way you can put in a peg and prepare it. 

BRIG. SEHGAL: If you can find someone to manufacture the ammunition. That 's also in a big way. 

TEHELKA: Where do you want me to go…from Russia, Israel? I have got base in New York, I have got a base in Canada, Argentina, Chile I have got. 

BRIG. SEHGAL: See, now these II tubes…

TEHELKA: France. They'll be coming to you. 

BRIG. SEHGAL: France they've been happily...I'll be very frank. You have to break this…this thing…of BE-Delft. BE-Delft is a PSU, which was…India invested. As of late, there has been a certain policy that nothing would be imported. There are many people who are really interested in that. So you have to get the nexus broken up at the top. And this BE-Delft thing…

TEHELKA: If I become their authorized…

BRIG. SEHGAL: But BE-Delft is not taking anyone else. 

TEHELKA: Okay. 

BRIG. SEHGAL: BE-Delft is Bharat Electrical (sic) Delft. Delft is Holland. 

TEHELKA: Holland. Okay. 

BRIG. SEHGAL: Holland has branched out from itself after the sanctions. US sanctions. What you have to do is get little open...because they have been talking big. Yeah, we can do this much. But he [referring to SASHI] is aware of it, how much less. They have been taking us, taking us for a ride. And somehow the bureaucracy also. And things have been badly manipulated in the Ministry. I'll be very frank with this. Things have been manipulated in the Ministry that…delay things deliberately, to suit them. 

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[Drinks arrive. They toast each other]

* * *

BRIG. SEHGAL: He doesn't have…there are so many other things also which are coming in this. Like you have spares. I can give you which spares' indent was made. I can give you the last procurement price. Generally what happens, what the scene is. They are not aware till the last minute what rate it was taken at. That I can calculate and you will also do. Everyone has been coming up with an offer. But I said, "Look, first give me 10 lakhs, then we will talk." 

TEHELKA: If they are not ready to place the information then the question of talking further does not arise. Who wants to discuss the future? Sir, in this I, my people are very clear. They have straight away said that "You go ahead and you be a part of the venture." It's not as if I am separate…would need a guide. 

BRIG. SEHGAL: I can help in so many things. I will tell you where to go, whom to meet. 

TEHELKA: Everything…meaning…you tell me everything. 

BRIG. SEHGAL: But then, see, I can show you the way. 

TEHELKA: Bilkul. 

BRIG. SEHGAL: But you'll have to move on your own. 

TEHELKA: Yes, yes, sir. Once you show us the way, we'll automatically follow it.

* * *

Soon enough comes a demand to be entertained in a five-star hotel. Brigadier Sehgal comes there with a Lt. Colonel Sharma, who is an officer posted in the Air Force procurement section. Here, they are entertained and disclose how to proceed.

TEHELKA: Sir, I want to ask…another one thing. One Mr. B. S. Yadav sitting in the Air Headquarters. It's a foreign cell. Sales he is dealing, I think in that. 

LT. COL. SHARMA: They have got their own procurement. They are basically dealing with Russians directly. 

BRIG. SEHGAL: Because those kind of PNCs [Price Negotiation Committee] and negotiations are done at the ministry level. We don't involve ministry in our world. We do it directly. 

BRIG. SEHGAL: This behan chod, they've done a very smart thing. He has kept everything with him. 

LT. COL. SHARMA: Fuck it, no CDA, nobody. We issue the tender, call the bloody parties, do the PNC, give the supply order. Screw you. 

TEHELKA: Sir, this thing you have said, this we can…in this whatever you say, we can get everything done. We will…

LT. COL. SHARMA: No, but I told you. We are basically dealing with proprietory items. You have a tie-up with those people. 

TEHELKA: We will get the tie-up done. With whoever you want, we will get a tie-knot, we'll get anything done. 

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LT. COL. SHARMA: All right. 

TEHELKA: You tell us, you will only have to tell us who we should tie with and who we should knot up with, who we should tie the 'naada' with. We will do everything. And whatever you ask, from a pin to anything you wish…

LT. COL. SHARMA: Thursday…on Thursday come to Room No. 221 at Vayu Bhawan.

LT. COL. SHARMA: Don't they give four options in [Kaun Banega] Crorepati? 

TEHELKA: Yeah, okay, okay, okay. 

LT. COL. SHARMA: We'll give you 10 options. The rest of the calculations you will do. 

TEHELKA: Yes, yes. All that's our work.

* * *

BRIG. SEHGAL: So, I will give you the details of the ammunition immediately. 

TEHELKA: Fine. 

BRIG. SEHGAL: The biggest one. 

TEHELKA: Okay, okay, okay. That one. If you have understood the last line.

* * *

BRIG. SEHGAL: Right? 

SASHI: Sir's Air Force thing is there…

BRIG. SEHGAL: That I have said. How much ammunition we need…you'll go crazy trying to find out. Behan chod…who will supply this much stuff! 

SASHI: Yes, the way BE-Delft is roaming around. Where will they get it?

* * *

After enjoying the hospitality of West End International at a five-star hotel, Brigadier Sehgal demands Rs. 2 lakh to give further documents relating to the procurement of Hand-Held Thermal cameras and other equipment that West End might be interested in supplying to the Indian Army. He accepts Rs. 20,000 and a little while later another Rs. 20,000. He also advises on how to proceed in the matter of bidding for the Hand-Held Thermal cameras.

TEHELKA: We have apologized for one thing, sir, that whatever is happening, we are going at a slow pace, but you can be rest assured…

[Gives money to Sehgal] 

BRIG. SEHGAL: How much is it? 

TEHELKA: This is 20 [thousand], sir. 

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BRIG. SEHGAL: What will I do with this? 

TEHELKA: Whatever is coming, as it is coming, we are giving it to you slowly, slowly. 

BRIG. SEHGAL: Let me tell you something. You keep this. Give it all tomorrow. 

* * *

BRIG. SEHGAL: There are some principles in life. 

TEHELKA: Haan, haan. 

BRIG. SEHGAL: Whatever it contains that will increase later…meanwhile, I will tell you the items, the country of origin. When your talks progress, I will tell you where the country of origin is, it's on my fingertips. 

BRIG. SEHGAL: I will tell you the name of the vice-chiefs, there are two vice-chiefs. 

TEHELKA: Okay. Name will be told, name - question mark. Okay, sir. 

BRIG. SEHGAL: Just write a letter to the Vice-Chief, MGO…that "we understand there is the requirement of hand-held HHTs." Our rate…keep our rate a bit low. 

TEHELKA: All right, sir. 

BRIG. SEHGAL: And send one to DGOS also. 

TEHELKA: DG…

BRIG. SEHGAL: …OS. 

BRIG. SEHGAL: I will take it from him today. Before that clear my dues. I have told the story…behan chod…that they are going for the TOT - transfer of technology. And as you had said, that you are ready to hand over the TOT. We would like to negotiate with you and we are ready to hand over the TOT. Behan chod, put that in also. 

TEHELKA: All right, sir. 

BRIG. SEHGAL: Even if TOT is a question mark, you at least ask because that man has to decide. 

TEHELKA: Yeah, I can't decide.

* * *

BRIG. SEHGAL: Yeah, you can't decide. That's why I said, put a question mark. 

BRIG. SEHGAL: See, the guy will think twice before signing…. Behan chod, see I have a counter offer and all these fuckers know about it. Either I give moneybehan chod to all of them. Include all. This mader chod is the way here. Not everyone gets the money. Whoever does the contract, gets it. You don't have to give.

* * *

BRIG. SEHGAL: So when you have initiated this to every fucker…

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TEHELKA: From these five, either all of them will call, then all of them will ask. 

BRIG. SEHGAL: All of them won't ask. I will tell you who will call, but when the next fucker knows that if I go in for this, when the contract has gone through, thenbehan chod…when a contract has gone through…why have you not gone through this? There is already a letter from so-and-so. 

TEHELKA: Sir, that will kill the others' chances and he would straight come to me. 

BRIG. SEHGAL: Then he will say why are you going for this? In view of the letter, why are you going for this? 

TEHELKA: Sir, you go for this. And that is our company. The minute it is our company, we have got the thing. And then he will ask for his…his 10 per cent. 

TEHELKA: So, it will go up to Lt. General. 

BRIG. SEHGAL: Yaar, that goes on the powers of Brigadier Singh. May have to go to RM [Raksha Mantri] also. 

TEHELKA: Who is RM? 

TEHELKA: RM. 

BRIG. SEHGAL: Raksha Mantri. It will go to Fernandes sahib also. 

SASHI: He also…

BRIG. SEHGAL: That behen chod is so money-hungry that one can just go on about it. 

[Sehgal gets up to make another drink] 

BRIG. SEHGAL (continuing): All these politicians are chutiyas. They are all different behind your backs. 

TEHELKA: Sir, before this, for groundwork sake, can't we meet the sahibs? 

BRIG. SEHGAL: Listen to me, why I am telling you do this, because that is reaching the financial stage. 

TEHELKA: Okay. 

TEHELKA: So we'll have to pay there also. If we meet five, we have to pay them all. We have no idea whether they will or won't do the job. 

BRIG. SEHGAL: What I am telling you…

TEHELKA: It will be singled down to one person. 

BRIG. SEHGAL: And, thereafter, I will tell you who the bastard is. I don't want to teach all the tricks because it has reached such a stage. Send a letter to theRaksha Mantri also. Address it to the Raksha Mantri and give a CC to everybody,behan chod. 

TEHELKA: RM first? Sir, then how he will collect the money? 

BRIG. SEHGAL: Behan chod, there are numerous channels for him. 

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TEHELKA: Those people themselves will contact us. 

BRIG. SEHGAL: They will come on their own, they will contact on their own. All that you have to ensure, that it can function upto minus 40 degrees. 

TEHELKA: 34, not 40 degrees. 

BRIG. SEHGAL: If you make it minus 40 degrees, then nothing like it. Between 40 and 50. Because basically, what, where we want it is the Siachen. There it is between [minus] 40 and 50.

* * *

While Senior Section Officer P. Sashi had earlier given us some related documents regarding hand-held thermal cameras on various other occasions, he plied us with more of the same. Also, because we intended to expand our product range, the range of confidential documents that he supplied us varied from requirements of ammunition to II tubes to clothing and even helicopters. Here's a brief sampling of one such transaction.

TEHELKA: Now you have to find a way out of this…. What are you giving me today? You are giving me something just now? 

SASHI: I can take out that other directory, you know…binoculars and specifications and catalogue and colour this thing…resolution. 

TEHELKA: You have not brought anything now? 

SASHI: That guy is doing like that…I told him I'll return it. There are his notes in it also. The note that the DG…the General has written. 

SASHI: Process. And what has our General written? "Why we should process?" Something like that. It is still kept there. I want to replace it. I told the boss, and he asked me, "If he will replace it, but will he do it so soon? All right, as you wish. If you want to take it, you take it. If something comes out of it, good…"

TEHELKA: Achha, there are some scales too. 

TEHELKA: That is the quantity? 

SASHI: One battalion; 300 quantity. We have 360 battalions. One battalion; 36 quantity…36 piece for one battalion. So we have 360 battalion. 360 into 3. 

SASHI: I'll get it by the evening. There won't be any checking today. 

TEHELKA: Take it now, na? I can arrange because I told them 3 o'clock I am getting all the documents in my hand. I have told them for the full money. 

SASHI: All the documents, in the sense, you will get only the binocular and you will get the ammunitions…

TEHELKA: Ammunitions? 

SASHI: I didn't get the ammunitions catalogue. Speak to the sahab. I told you to speak to the sahab. Or that thing he wrote about the procurement plan…

7

TEHELKA: Haan. 

SASHI: 150mm ammunition…for procurement, for so much and so much amount. As in 21 cartridges. There are 21 cartridges that are imported. 

TEHELKA: Achha? 

SASHI: That has been given. 

TEHELKA: What? 

SASHI: 25 ammunition, 66 ammunition, 135 ammunition…150 for Bofors. They import all these, na? 

As a matter of fact, Sashi himself was setting up different channels for us that would take us right upto Defence Minister George Fernandes and the then Minister of State for Defence, Harin Pathak. He was using state party functionaries of the BJP and Shiv Sena for lobbying with the politicians. For army officials and bureaucrats, he used their personal secretaries. Towards the end, Sashi's channels hit a roadblock. In the meantime, we at Tehelka had already opened two-three independent channels of our own which started bearing fruit. One such operator we tapped was Lt. Colonel Sayal (Retd). He was our conduit to many officers concerned with procurement. Here, Sayal has fixed a meeting with his old colleague Brigadier Iqbal Singh, PPO, Prospective Procurement Officer, a crucial post under the Master General Ordnance (MGO). Here is an excerpt from Brigadier Iqbal Singh's first meeting with Tehelka at his home.

LT. COL. SAYAL: Actually Sir, West End International is a firm, which is based in London. In London. So they have got this night-vision devices, night-vision goggles and all that. They have not entered into India so far, which they are intending to. They have a project, so they have got the assets to deal directly with manufacturers for Southeast Asia and this South Africa. About that, they want to promote that. So they have associated me also. I have got the brochures with me also, in case you have some time, so just glance through it. And if it is of any interest to you, for the defence forces. 

BRIG. IQBAL SINGH: Night-vision devices? 

TEHELKA: Night-vision devices…it will work minus 40. 

BRIG. IQBAL SINGH: Minus 40? What spadework you've done so far? 

LT. COL. SAYAL: Spadework is that there is a requirement for this kind of thing. CSF Thomson have got the order. Have not been able to, but their product is not up to the mark. So they are finding difficulties at the inspection stage itself. And now as the range is required quite a few, eight-nine companies are coming to this field. So this we secure. Further, this thing can be given as this is the time-bound project. So the aim is short-listing the name of the company; by seeing the product. Rest we will discuss later, because we have very little time left. 

BRIG. IQBAL SINGH: You do like this…write a letter giving the details of product, along with a brochure, and you say that you are willing to give trials on no-cost basis. No-cost, no-commitment basis, and as such your equipment should be evaluated.

* * *

Ten days later, Brigadier Iqbal Singh meets the Tehelka undercover investigation team for further talks at a Delhi five-star hotel. He accepts Rs. 50,000 in bribes, advises West End on how to proceed further in the matter of the HHTs and agrees to lobby with Lt. Gen. Dhillon, Master General Ordnance (MGO), and other

8

army officers on behalf of West End. He also impresses on us the importance of lobbying with Major General P.S.K. Choudary of the Weapons & Equipment (W.E.) division, as he is the most important at this stage.

BRIG. IQBAL SINGH: You cultivate Choudary and GSO. These two things. 

TEHELKA: That is my part. I will do it. That...P.S.K. Choudary, that is your part. 

BRIG. IQBAL SINGH: P.S.K. Choudary, I will try. 

TEHELKA: Haan, please. 

BRIG. IQBAL SINGH: That is...he doesn't come in my chain of command. 

TEHELKA: Yeah. Sir, now I given 50,000 bucks. If you need more, you ask me. I will give you, no problem. 

BRIG. IQBAL SINGH: See, it's like this. Your job should be done. 

TEHELKA: Yeah, naturally, naturally. 

BRIG. IQBAL SINGH: I am not looking for…

TEHELKA: Yeah. That US job - give me that entire thing. I will do it. 

BRIG. IQBAL SINGH: One is not interested in money if your job is not done. 

TEHELKA: Give me that also. That I will do. 

BRIG. IQBAL SINGH: All right. 

TEHELKA: No problem. 

BRIG. IQBAL SINGH: And my job is to look after…up to MGO side. That is my department.

Brig Iqbal then spells out the commission that has to be given to Gen. Dhillon.

BRIG. IQBAL SINGH: Cultivating MGO is my problem. 

TEHELKA: Yeah. 

BRIG. IQBAL SINGH: But Choudary is not my department. 

TEHELKA: But it is interconnected. 

BRIG. IQBAL SINGH: I will try. I will find out somebody from his country-cousin side, whether he is game or not otherwise. 

TEHELKA: Yeah, okay. 

BRIG. IQBAL SINGH: All right, na? For Choudary, you also must find out somebody. 

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TEHELKA: Yeah. I will also find out. General Ahluwalia is close to Choudary? 

BRIG. IQBAL SINGH: No. 

TEHELKA: No. He told me that. 

BRIG. IQBAL SINGH: Even I am not close to him. That is why I told you, I'll have to find somebody out. But Dhillon, yes, that is in my power. That meeting I will organise. 

TEHELKA: Okay. 

BRIG. IQBAL SINGH: If it cannot be done outside, I will organise in his office. 

TEHELKA: No, not in office. That is a too dangerous thing. 

BRIG. IQBAL SINGH: No, then I will organise in his house. 

TEHELKA: Not in the office or house. Outside in Delhi. That is good. 

BRIG. IQBAL SINGH: Let us see. 

TEHELKA: Okay. 

BRIG. IQBAL SINGH: General Dhillon is the boss of everything here. Even if somebody says 'yes', somebody will say 'no'. If one person in the chain says 'no', your case is doubtful by that much margin. 

TEHELKA: Okay, that General Ahluwalia said that Dhillon is not such a important person. 

LT. COL. SAYAL: No, why I'll tell you…what he said was…that it is a W.E. matter. General Choudary's matter. That is what…

BRIG. IQBAL SINGH: That is what I'm saying. You must cultivate Choudary. It's a Weapon and Equipment matter, fine. But it doesn't end there. Now W.E. wants to import something, or do whatever it is…it is his branch, MGO's branch…General Dhillon's branch which puts a spoke in between. 

LT. COL. SAYAL: They just cannot get anything inside India. That is there. 

BRIG. IQBAL SINGH: For example, we have imported some grenades. Okay? There were some range of 400-500 meters that were required to be achieved. That is only giving us 300. Now to accept that 300 or not to accept that 300…it is the…General Dhillon who plays the part.

* * *

TEHELKA: Sir, this…Gen. Dhillon, we can approach him? 

BRIG. IQBAL SINGH: That one can organise it. No problem. 

LT. COL. SAYAL: We will organize it. 

BRIG. IQBAL SINGH: See, there is no single agency who is an authority of importing anything and whatever they want. That you must appreciate. 

TEHELKA: Yeah, exactly. 

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BRIG. IQBAL SINGH: If there are 10 agencies involved, everybody plays his role.

LT. COL. SAYAL: See…problem…the point is the file moves like this [gestures with his hand in regular forward intervals]. There are linkages. 

BRIG. IQBAL SINGH: For the entire Indian Army, whosoever may be the importer, I am the person who is paying the money. 

TEHELKA: Okay. 

BRIG. IQBAL SINGH: Whether it is Choudary or it is bloody DGPO or anybody else…

* * *

LT. COL. SAYAL: All that's fine, now whatever you have heard from Sir, you have to react to that. [to Brigadier Iqbal Singh] He's brought a small gift for you. 

BRIG. IQBAL SINGH (reacting to Tehelka offering him money): What for, yaar? 

LT. COL. SAYAL: Please, please. 

BRIG. IQBAL SINGH: First let your job be done. 

LT. COL. SAYAL: No, no. 

TEHELKA: No sir, this is just a gift...small gift. 

BRIG. IQBAL SINGH: For whom? Point is... 

TEHELKA: Small gift. 

LT. COL. SAYAL: Sir... 

LT. COL. SAYAL: If you have a problem taking it with you, I will deliver it at your place. 

BRIG. IQBAL SINGH: You do like this…let your job be done first. 

TEHELKA: Small gift. That's all. 

BRIG. IQBAL SINGH: Let us say I am not able to help you. Then? 

LT. COL. SAYAL (Very insistent): No problem. 

TEHELKA: Sir, your mind is there with us. 

BRIG. IQBAL SINGH: Mind is there, of course. 

TEHELKA: Okay. 

[Gives him a few wads of money. Brigadier Iqbal Singh takes it and hands it to Sayal who picks up his briefcase in full view of camera and puts away the money, counting and arranging it.] 

TEHELKA: Please, fifty thousand is there. 

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BRIG. IQBAL SINGH: What I'm saying…

LT. COL. SAYAL: Sir, it's like this, introduce the MGO to us. Oh sorry, introduce Choudary and then we will look around.

Lt. Colonel Sayal also takes us to Major General Manjit Singh Ahluwalia, 

Director General Quality Assurance. Gen. Ahluwalia starts off cautiously, 

then in no time is swinging deep in it. Though Ahluwalia's role kicks

in a little later, he advises West End on the matter.

MAJ. GEN. MANJIT SINGH AHLUWALIA: Currently they are taking from a French company already. 

TEHELKA: CSF-Thomson. 

MAJ. GEN. AHLUWALIA: See what happens is, understand the systems. Before we start procuring, you carry out user trials. Having done the user trial, we start the procurement process, which has started. There is already a linkage. If you think anybody is doing it without linkages, it is stupid to believe. The linkage is there. It has started, it has been trial evaluated, found successful, it's been booked. Now why should that man put in a new bloody spoke? 

[Long pause] 

MAJ. GEN. AHLUWALIA: It's already coming in. I doubt it, you can try it. Gen. P.S.K. Choudary is the person. Why should he do it, tell me? 

[Long pause] 

MAJ. GEN. AHLUWALIA: See, it's already started.

* * *

MAJ. GEN. AHLUWALIA: Fine, no problem, I'm dealing with it in the sense…. You see, I don't do this procurement ex-import. That is capital work that is done by the ADG, W.E. Once it is introduced item, then we will place the indents. Then we will do it. Even if it is imported it will be done by PPO. If it is indigenous, we will do it here. As of now, it is still a W.E. item, and it is not likely. And at this juncture…let me tell you… Organisationally, not talking of the other benefits which you are suggesting for that person which he would also be getting from the other person. Even organisationally, they would not go about this task. It doesn't suit the organisation.

* * *

MAJ. GEN. AHLUWALIA: You have to create a network and let me tell you it has got, you know, because the carrot at the other end is big for everybody. You need very deep pockets. Let's be very clear about it. 

LT. COL. SAYAL: No, that is understood. That is the first step. 

MAJ. GEN. AHLUWALIA: So if you want it, if you have that type of a thing only then venture into it…because you know why? Now understand, if you are talking about a deal which is 20 crore here, 60 crore there, make a profit of 5 crore,saala, if you come to my house to meet me on Diwali, you can't talk without bringing Blue Label. If you are talking of bloody making a couple of crores of rupees, you can't give me bloody Black Label also? Isn't it? Let's be very clear about it. 

12

TEHELKA: True fact, sir. 

MAJ. GEN. AHLUWALIA: So, if, when you are talking big, you got to also project big. You have had access to me because you know me [pointing towards Sayal]. If under normal circumstances you want to meet with me tomorrow, you say…you are talking in terms of making a deal of a couple of crores, you can't tell me to come and have a meal with you at bloody DSOI. 

LT. COL. SAYAL: That's right, very right. 

MAJ. GEN. AHLUWALIA: Then you have to say, "Sir, if you want that person…want to meet Gen. P.S.K. Choudary…" you say, "Sir, can we have dinner at Maurya Sheraton?" 

MAJ. GEN. AHLUWALIA (continuing): I am talking of the bare minimum. I am talking about when you come for Diwali, you come and say, "Sir, good evening, sir." Then you give me bottle of fucking…bloody…

LT. COL. SAYAL: RC…Hundred Pipers... 

MAJ. GEN. AHLUWALIA: You know, be clear about it. And it's going on for donkey's years. And you're getting bloody small bits of information out of that chap. For…in two years, three years, a chap wants to know bloody up from there, "Yaar, I've already invested you so much. You tell me where is the file?" Now just to find out where the file is, and what is the position about it, it would have cost you easily 25-30 thousand rupees. 

TEHELKA: Barabar.

* * *

MAJ. GEN. AHLUWALIA: I've been here now two years, I must have met at least 35-40 people. Every other fucker knows bloody Putin. Everybody knows George Fernandes. Everybody knows bloody Putin, everybody knows bloody Saddam. Then they say "get this done for me now." 

[Pause] 

MAJ. GEN. AHLUWALIA: And that…"here is a letter. I have got agency from bloody exports." There are 25 buggers who are carrying a letter from exports. This is big. The carrot at the other end is one bloody deal. This Kaun Banega Crorepati will go into fuckin' bloody… (all laugh) So, therefore, unless you are big…p

MAJ. GEN. AHLUWALIA: It takes years to develop those contacts, it's an expensive habit to develop those contacts. It's because of a contact that he and I have over the years, that I am divulging some information. 

TEHELKA: Yes. 

MAJ. GEN. AHLUWALIA: If it was yesterday's contact with, then why should I divulge you? If then your only way is by offering me an inducement, then it has to be a...the value of that inducement has to be appropriate. So, therefore, those chaps who are in the business of developing contacts, they were developing it for years. Before that, before they come and meet you, and it is that time when you don't need, when you are not asking me for anything, when you are not asking that General for Choudary...that you call him for dinner, that's the time he attends, but the result of it is, he is sitting in his place, that you tell the benefit of it is coming, not directly. 

MAJ. GEN. AHLUWALIA: But this thermal imager also as I know. It isn't getting order. I will let you know. Give me about a week's time. I will move to Bangalore now...tomorrow and from there I am off to Hyderabad. I will let you know in a week's time. Okay? 

[Ahluwalia gets up and stands and moves a bit.] 

MAJ. GEN. AHLUWALIA: Okay. 

13

LT. COL. SAYAL: Small gift. 

[Sayal goes near Ahluwalia and tries to hand him Rs. 50,000, which he accepts later.] 

MAJ. GEN. AHLUWALIA: This is, this is... Sayal please. Don't be…

LT. COL. SAYAL: Okay, later. Then…

MAJ. GEN. AHLUWALIA: Okay. 

TEHELKA: Sir, I can move. 

MAJ. GEN. AHLUWALIA: Sorry, yes, I will.

* * *

By this time, we had been introduced to Major General S.P. Murgai (of the DGQA) by Colonel Sayal. General Murgai had still sometime to go to his retirement and was on leave. He explains how the procurement process goes in the Indian Army, he promises to arrange meetings with MGO Lt. General Dhillon, the personal secretary of Minister of State Hiren Pathak and others.

MAJOR GENERAL S.P MURGAI: On that short-listing then they go in for new commercial bids. Okay? Now there you can…. So this is what is going to be done. At this stage of time, money doesn't play the role here. Because whether it is MGO or whether it is Defence Secretary…. Let me tell you one thing, because I have been dealing on day-to-day basis. They play no role at this point of time, because it is the users who have to indicate their preference. 

LT. COL. SAYAL: Sir. 

MAJ. GEN. MURGAI: They have to say that…this is the item, which is more suitable to us, after it has gone through the field trials. As far as the technical evaluation is concerned, it is only going to be to check conforms to specifications; as per the specifications laid down or as per the manufacturers' specifications. Once the company is short-listed…okay? That is the time when some influence can be exercised. 

LT. COL. SAYAL: Sir.

* * *

TEHELKA: Before short-listing, you have to meet these people? 

MAJ. GEN. MURGAI: Which people? 

TEHELKA: Sir. One is the MGO. You have to meet these people - MGO and PPO and DGQA. 

MAJ. GEN. MURGAI: See, it is like this, at the moment DGQA doesn't….

TEHELKA: Okay, he told me DGQA is over. 

MAJ. GEN. MURGAI: Hmm? 

TEHELKA: That is not necessary now. But two people are important. 

MAJ. GEN. MURGAI: See, at the moment DGQA is not in picture, na? 

MAJ. GEN. MURGAI: Don't go and knock at the wrong door. 

LT. COL. SAYAL: No, I am…he straight away contacted me. 

MAJ. GEN. MURGAI: Because he is not in the picture. They have not received the sample, then where is the question of technical? 

MAJ. GEN. MURGAI: Now as far as the MGO is concerned, let me tell you one thing. On 27th he is going abroad. His son is in America. He is going for one-month leave. 

TEHELKA: Okay. 

MAJ. GEN. MURGAI: He is going for one-month leave. 

TEHELKA: Before we can? 

MAJ. GEN. MURGAI: For one month he will be out. He will be leaving on the 27th. He is here till Diwali, because he wants Diwali gifts. Only a fool can go before that. Okay? He is going on the 27th, on his private

14

visit. Fine? That's what it is. As far Deputy MGO is concerned, let me also give another input. He is already…he is waiting to move out. I think by end of November or 1st week of December, he should be going as a…

LT. COL. SAYAL: Okay sir, MGO is also retiring in April. 

MAJ. GEN. MURGAI: In end of March. See point is, you get some more information. The point is very clear. When, let us say, I approach…let us say, on your behalf, he may talk to me. 

TEHELKA: Okay. 

MAJ. GEN. MURGAI: He may talk to MGO. What do I tell him, "Sir, take this?" 

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: Okay? On what basis? So, what I mean is let little…more through your contact, you have to get the information, what exactly is the present position of file. 

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: Okay. That means the request of proposal which have come, they must be considering that. 

LT. COL. SAYAL: That's right, sir. 

MAJ. GEN. MURGAI: So if some eliminations they have done, something they must have analysed, that this is available, and this is not. If that analysis is done, then what is their analysis regarding you? 

MAJ. GEN. MURGAI: You understand? 

TEHELKA: I got it, it got it. I can follow that.

* * *

TEHELKA: We submitted Ranjit Issar. 

MAJ. GEN. MURGAI: Hmm? 

TEHELKA: IAS. Ranjit Issar, Joint Secretary, Ordnance. Procurement. 

MAJ. GEN. MURGAI: Now, if you are wanting to meet MGO, I can arrange a meeting. That's all. And then you can talk whatever you like. That can be done. Okay? So that's all for….

LT. COL. SAYAL: You can arrange wherever you like. 

MAJ. GEN. MURGAI: His office. 

LT. COL. SAYAL: Whichever is the place. It will be difficult in the office. 

MAJ. GEN. MURGAI: Everythying is possible. 

LT. COL. SAYAL: No, otherwise we have to take care. Take care, I mean…

MAJ. GEN. MURGAI: He'll inform himself. 

LT. COL. SAYAL: He'll inform himself? 

MAJ. GEN. MURGAI: Who else do you want to meet? PPO? 

LT. COL. SAYAL: PPO and MGO. 

TEHELKA: And Maj. Gen. P.S.K. Choudary, Additional Director General, Weapons and Equipments. 

MAJ. GEN. AHLUWALIA: It takes years to develop those contacts, it's an expensive habit to develop those contacts. It's because of a contact that he and I have over the years, that I am divulging some information. 

TEHELKA: Yes. 

MAJ. GEN. AHLUWALIA: If it was yesterday's contact with, then why should I divulge you? If then your only way is by offering me an inducement, then it has to be a...the value of that inducement has to be

15

appropriate. So, therefore, those chaps who are in the business of developing contacts, they were developing it for years. Before that, before they come and meet you, and it is that time when you don't need, when you are not asking me for anything, when you are not asking that General for Choudary...that you call him for dinner, that's the time he attends, but the result of it is, he is sitting in his place, that you tell the benefit of it is coming, not directly. 

MAJ. GEN. AHLUWALIA: But this thermal imager also as I know. It isn't getting order. I will let you know. Give me about a week's time. I will move to Bangalore now...tomorrow and from there I am off to Hyderabad. I will let you know in a week's time. Okay? 

[Ahluwalia gets up and stands and moves a bit.] 

MAJ. GEN. AHLUWALIA: Okay. 

LT. COL. SAYAL: Small gift. 

[Sayal goes near Ahluwalia and tries to hand him Rs. 50,000, which he accepts later.] 

MAJ. GEN. AHLUWALIA: This is, this is... Sayal please. Don't be…

LT. COL. SAYAL: Okay, later. Then…

MAJ. GEN. AHLUWALIA: Okay. 

TEHELKA: Sir, I can move. 

MAJ. GEN. AHLUWALIA: Sorry, yes, I will.

* * *

By this time, we had been introduced to Major General S.P. Murgai (of the DGQA) by Colonel Sayal. General Murgai had still sometime to go to his retirement and was on leave. He explains how the procurement process goes in the Indian Army, he promises to arrange meetings with MGO Lt. General Dhillon, the personal secretary of Minister of State Hiren Pathak and others.

MAJOR GENERAL S.P MURGAI: On that short-listing then they go in for new commercial bids. Okay? Now there you can…. So this is what is going to be done. At this stage of time, money doesn't play the role here. Because whether it is MGO or whether it is Defence Secretary…. Let me tell you one thing, because I have been dealing on day-to-day basis. They play no role at this point of time, because it is the users who have to indicate their preference. 

LT. COL. SAYAL: Sir. 

MAJ. GEN. MURGAI: They have to say that…this is the item, which is more suitable to us, after it has gone through the field trials. As far as the technical evaluation is concerned, it is only going to be to check conforms to specifications; as per the specifications laid down or as per the manufacturers' specifications. Once the company is short-listed…okay? That is the time when some influence can be exercised. 

LT. COL. SAYAL: Sir.

* * *

TEHELKA: Before short-listing, you have to meet these people? 

16

MAJ. GEN. MURGAI: Which people? 

TEHELKA: Sir. One is the MGO. You have to meet these people - MGO and PPO and DGQA. 

MAJ. GEN. MURGAI: See, it is like this, at the moment DGQA doesn't….

TEHELKA: Okay, he told me DGQA is over. 

MAJ. GEN. MURGAI: Hmm? 

TEHELKA: That is not necessary now. But two people are important. 

MAJ. GEN. MURGAI: See, at the moment DGQA is not in picture, na? 

MAJ. GEN. MURGAI: Don't go and knock at the wrong door. 

LT. COL. SAYAL: No, I am…he straight away contacted me. 

MAJ. GEN. MURGAI: Because he is not in the picture. They have not received the sample, then where is the question of technical? 

MAJ. GEN. MURGAI: Now as far as the MGO is concerned, let me tell you one thing. On 27th he is going abroad. His son is in America. He is going for one-month leave. 

TEHELKA: Okay. 

MAJ. GEN. MURGAI: He is going for one-month leave. 

TEHELKA: Before we can? 

MAJ. GEN. MURGAI: For one month he will be out. He will be leaving on the 27th. He is here till Diwali, because he wants Diwali gifts. Only a fool can go before that. Okay? He is going on the 27th, on his private visit. Fine? That's what it is. As far Deputy MGO is concerned, let me also give another input. He is already…he is waiting to move out. I think by end of November or 1st week of December, he should be going as a…

LT. COL. SAYAL: Okay sir, MGO is also retiring in April. 

MAJ. GEN. MURGAI: In end of March. See point is, you get some more information. The point is very clear. When, let us say, I approach…let us say, on your behalf, he may talk to me. 

TEHELKA: Okay. 

MAJ. GEN. MURGAI: He may talk to MGO. What do I tell him, "Sir, take this?" 

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: Okay? On what basis? So, what I mean is let little…more through your contact, you have to get the information, what exactly is the present position of file. 

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: Okay. That means the request of proposal which have come, they must be considering that. 

17

LT. COL. SAYAL: That's right, sir. 

MAJ. GEN. MURGAI: So if some eliminations they have done, something they must have analysed, that this is available, and this is not. If that analysis is done, then what is their analysis regarding you? 

MAJ. GEN. MURGAI: You understand? 

TEHELKA: I got it, it got it. I can follow that.

* * *

TEHELKA: We submitted Ranjit Issar. 

MAJ. GEN. MURGAI: Hmm? 

TEHELKA: IAS. Ranjit Issar, Joint Secretary, Ordnance. Procurement. 

MAJ. GEN. MURGAI: Now, if you are wanting to meet MGO, I can arrange a meeting. That's all. And then you can talk whatever you like. That can be done. Okay? So that's all for….

LT. COL. SAYAL: You can arrange wherever you like. 

MAJ. GEN. MURGAI: His office. 

LT. COL. SAYAL: Whichever is the place. It will be difficult in the office. 

MAJ. GEN. MURGAI: Everythying is possible. 

LT. COL. SAYAL: No, otherwise we have to take care. Take care, I mean…

MAJ. GEN. MURGAI: He'll inform himself. 

LT. COL. SAYAL: He'll inform himself? 

MAJ. GEN. MURGAI: Who else do you want to meet? PPO? 

LT. COL. SAYAL: PPO and MGO. 

TEHELKA: And Maj. Gen. P.S.K. Choudary, Additional Director General, Weapons and Equipments. 

MAJ. GEN. MURGAI: He has no role to play in this. 

TEHELKA: No role? 

LT. COL. SAYAL: No. 

MAJ. GEN. MURGAI: And…and I'm telling you. Like you…. Today I'm telling you, don't be disappointed later on. Like you, hundred people are visiting them with the same proposals. Hundred. 

TEHELKA: Okay.

* * *

18

TEHELKA: Sir, if you are close to Pradhani…that Defence Production Minister…of Defence Production Prahdani, R.P. Pradhani. That Shiv Sena…

MAJ. GEN. MURGAI: He's not Pradhani. He is Hiren Pathak. 

LT. COL. SAYAL: Pathak. 

TEHELKA: Only one minister for state? Sir, if you are close to him. We can give him some election fund also. 

MAJ. GEN. MURGAI: I will introduce him. 

TEHELKA: Introduce him? Okay.

* * *

In the end, of course, Major General Murgai pockets his first advance.

LT. COL. SAYAL: I told you something to take care. 

LT. COL. SAYAL: How much is this? 

TEHELKA: Twenty. 

MAJ. GEN. MURGAI: That is okay. 

TEHELKA: No, please….

MAJ. GEN. MURGAI: Let me see how the things go. 

LT. COL. SAYAL: It is nothing, sir. This has to be given. Give…

TEHELKA: 9.30, sir. 

LT. COL. SAYAL: 9.30.

* * *

The next day General Murgai introduces us to Shukla, the Personal Secretary to Minister of State Harin Pathak. The Ketan Shukla line wasn't pursued vigorously by West End because of the resignation of minister Harin Pathak. However, getting an order from the Indian Army is not just greasing the army and the politicians. The finance guys also have to be kept in good humour. Brigadier Sehgal puts us through to Narendra Singh, Additional Finance Advisor, Ministry of Defence, to brief us on how things move in the maze of the babu number-crunchers. In the first meeting, Singh accepts Rs. 10,000 as a token advance. He advises West End where to concentrate on and says that things in the finance world will move only when the product has been accepted.

NARENDRA SINGH: So...but initially what I think is that your...first of all, your product should be tried out by infantry or artillery and they should say, you know, they have seen the product and it is very good. 

TEHELKA: Okay. 

NARENDRA SINGH: That is regarding user trials. 

19

TEHELKA: So what I have to do first? Already this channel is okay. 

NARENDRA SINGH: I...I...you know, I can give you some references. 

TEHELKA: Okay. 

NARENDRA SINGH: Once you meet them officially, you explain them your problem. 

TEHELKA: Sir, that Ranjit Issar in the Ordnance is very crucial factor. 

NARENDRA SINGH: No, no...see, I am telling you that these people, what you are talking is Bhutani, Bunker or Ranjit Issar or...I will give a parallel line in the finance division. They will come into picture only when there is a procurement proposal. Before that they have nothing to do. 

TEHELKA: Okay. 

NARENDRA SINGH: They are concerned only with the procurement of things. Before that necessity and acceptability of the product has to be there. They should say, you know, that what you are offering in technology-wise or performance-wise this is a improvement over what we have already seen. 

TEHELKA: Yeah. 

NARENDRA SINGH: So some...and then how to get you entered into the competition.

Deputy Secretary Narendra Singh emphasizes time and again that in the long chain of people required to be greased, General Choudary was the first link. He advises West End to concentrate on getting the product trials going.

NARENDRA SINGH: I give you one example, then you will know the terms. There is one more very established company - Sagem. 

TEHELKA: Which one? 

NARENDRA SINGH: Sagem! Sagem! 

TEHELKA: Sagem. Which...foreign company? 

NARENDRA SINGH: Foreign company. French company. 

TEHELKA: Haan. 

NARENDRA SINGH: For the last five years they are trying that their product should be seen by the army. They have not been successful. 

TEHELKA: Not yet? 

NARENDRA SINGH: Not yet. 

TEHELKA: What is the problem? 

NARENDRA SINGH: And they have a office in Delhi. 

TEHELKA: Uh-huh. 

20

NARENDRA SINGH: One General-level officer has been posted here. 

TEHELKA: General? 

NARENDRA SINGH: One General-level officer has been posted here. 

TEHELKA: Retired? 

NARENDRA SINGH: Retired. 

TEHELKA: In the Indian Army? 

NARENDRA SINGH: French Army. 

TEHELKA: Indian Army? 

NARENDRA SINGH: French Army. 

TEHELKA: French Army. 

NARENDRA SINGH: Hmm. He is been posted here. They have a office in Golf Links. All that, I mean, Colonel Sehgal will, of course, not be aware of these things because his department is different. 

TEHELKA: Hmm. 

NARENDRA SINGH: So it is not very easy...to get an entry is not very easy. You see...your principals are which company? 

TEHELKA: West End. 

NARENDRA SINGH: West End. 

NARENDRA SINGH: I know, I know...no...actually I had...actually when you compared yourself with Thomson and all that, I started thinking that way. It is not that way. It is off-the-shelf. It is different entirely. 

TEHELKA: It is different. 

NARENDRA SINGH: So they will...I know now...now I know what will they do is this emergency requirement. 

TEHELKA: It's emergency requirement. 

NARENDRA SINGH: So emergency requirements, so far it is not there in our list. 

TEHELKA: Yeah. 

NARENDRA SINGH: So, there are...I will tell you there are number of persons to be contacted. Contacting one person will not help in MoD also. There are number of persons. One person will be holding the project. 

TEHELKA: Hmm. 

NARENDRA SINGH: One person who will be clearing the demand. 

TEHELKA: Yeah. 

21

NARENDRA SINGH: Another person who will be sitting in the PNC. 

TEHELKA: Right. 

NARENDRA SINGH: Right? See...so there will be four-five at working levels. 

TEHELKA: Yeah. 

NARENDRA SINGH: So I am more concerned with people who are at the working level. 

TEHELKA: Yeah. 

NARENDRA SINGH: So, then it is your job, if there are any problems I will tell you, you will have to handle this person or that person. 

TEHELKA: Okay. 

NARENDRA SINGH: So before that...keep, kindly keep quiet on that and you should not meet anybody till then. And then I will tell you if it, I mean, comes to that stage then how to go ahead. You have to tackle that man. How you tackle that has to be your…

[Narendra Singh smiles and Tehelka gives him a wad of currency notes, which Singh takes and puts under the table between them.] 

TEHELKA: Sir, this is 10,000 bucks. So what is my request is that, please arrange these kind of meetings. We can meet these people in Park Hotel anywhere. 

NARENDRA SINGH: Let me tell you...see, you let the demand come. 

TEHELKA: This is 10,000...this is 10,000 bucks. Small, this is just a…

* * *

TEHELKA: They are the major players. 

NARENDRA SINGH: These are the major players. So…

TEHELKA: Sir, you have any idea, what they are giving percentage to... 

[Narendra Singh shakes his head] 

TEHELKA: Hmm? Defence people told me, they are giving around...more than 21 percentage. 

NARENDRA SINGH: Oh, no, no, no. 

TEHELKA: Total? I don't think so, 21 per cent no one will give. If 21 per cent, then what is the profit? 

NARENDRA SINGH: No. And you, now as per the latest procedure, if you are not the lowest you are out. 

TEHELKA: Yeah. 

NARENDRA SINGH: Even if we buy it from you, one thing is sure, the other two companies will be in the fray. 

22

TEHELKA: Naturally. 

NARENDRA SINGH: So you will think of giving the best price in the first quote. So, even if you are by one dollar, you are higher than them. You have no chance. Whatever you have done it goes in the drain. That is another thing. So, nowadays, that 21 per cent is out of question. It could have been earlier. 

NARENDRA SINGH: But now for the last one-and-a-half years, the latest instructions have come that contract is to be based on the L-1, that is lowest offer received. All higher offers are to be summarily rejected. No talking to them. 

TEHELKA: Okay. 

NARENDRA SINGH: So, how…how can you keep that 21…?

TEHELKA: 21 per cent is a big one! 

NARENDRA SINGH: It's only two-three per cent and you see 100 crores. What you see two-three per cent, means it is two-three crore rupees, you know. 

TEHELKA: Yeah. What that procurement officer, that Ordnance people saying, they need direct 4 percentage. 

NARENDRA SINGH: See, let me tell you right now, I mean because you have come to me, I am very simple, and you will find out later on also. 

TEHELKA: Yeah, naturally. 

NARENDRA SINGH: I will not try to misguide you because our association will be very long also. See, right now, Ordnance have nothing to do with…

TEHELKA: Yes. 

NARENDRA SINGH: Absolutely nothing. 

TEHELKA: Yes. 

NARENDRA SINGH: They will not come into picture, neither PPO will come. 

TEHELKA: Yeah. 

NARENDRA SINGH: It is only W.E. only and Infantry and Mechanisation and Artillery.

* * *

Meanwhile, Sashi introduces us to H.C. Pant, a deputy director in the Ministry of Defence. A veteran Delhi bureaucrat, Pant has been a fixture in Delhi officialdom doing odd jobs for politicians of all hue. Not only does he know the Army top brass, he knows all the middlemen in Indian defence who utilise him for their fixing needs. He is a veritable gold mine for Operation West End. We start from our first meeting. We explain where we are with our HHT project.

PANT: I will obviously…

SASHI: File evaluation, but Choudary is not considering it. 

23

PANT: When you sent the letter to him? 

SASHI: When, just…three weeks before. 

TEHELKA: One month. One month. 

PANT: You got a copy of this? 

TEHELKA: Copy of this…

SASHI: No. That covering letter…

TEHELKA: No sir, that I will give you tomorrow. 

PANT: Okay, fine. Then I will speak to him. 

TEHELKA: Yeah. 

SASHI: That…whatever their demand is, let us know. 

PANT: Don't worry about these things. Once the job is done, everything takes care of itself. Why do you worry about these things? 

SASHI: Choudary sahab…

TEHELKA: Okay. 

PANT: Forget about all these, first let the work happen, then we'll do all that. You know Hindi well? You can speak that? 

TEHELKA: Yeah, yeah. Sir, the evaluation work has to be done. Sir, that is most important. 

PANT: Hmm. 

SASHI: Sir just said, na, the evaluation work, I shall speak to sir and get it done. After that only you meet…

PANT: I will speak to him immediately. 

TEHELKA: Okay, okay. General Choudary? 

PANT: Yes. 

SASHI: And after that sir, there is another financial party is also there. 

PANT: Hmm.

Pant explains how West End should go about henceforth. He offers to use his proximity with General Choudary and Director General Infantry, Major General Shankar Prasad to fix up meetings.

PANT: Go through. This is a channel basically.... 

TEHELKA: Yeah. 

24

PANT: You have to go through the DG Infantry. DG Infantry will recommend it to DGOS or MGO…

TEHELKA: Okay. 

PANT: Basically they recommend it to MGO or the DGOS. DGOS then he will give it to General Choudary. This is basically the route. 

TEHELKA: Yeah. 

PANT: DG Infantry General Shankar Prasad, he has to recommend it first of all. 

TEHELKA: Okay. 

PANT: So, you have to go the General; I will get you an appointment with General Shankar Prasad. 

TEHELKA: Okay, Shankar Prasad? 

PANT: Yeah. 

TEHELKA: Okay. 

PANT: Yeah. So, better you first…

SASHI: First DG Infantry will recommend the version…

PANT: …to DGOS. This is the channel basically. 

TEHELKA: Okay, sir. 

PANT: Then I will speak to…I have already spoken to General Choudary…

TEHELKA: Hmm. 

PANT: But he said…but the recommending authority is we people. 

TEHELKA: Okay. 

PANT: First you meet him, then they will recommend it, then it will go to DGOS. DGOS then you meet Colonel Pandey there. One of my friend is there. 

TEHELKA: Okay. 

PANT: He is the staff officer of Colonel Soni. 

TEHELKA: Okay. 

PANT: So, you go to him, and then he will tell…in the meantime, I will speak to General Choudary. 

TEHELKA: Okay, okay. 

PANT: This is the channel.

* * *

25

He goes onto give details of some secret property

bought by Major General Choudary.

PANT: He is a smart chap. General Choudary is a smart chap. 

TEHELKA: Yeah, yeah, yeah. 

PANT: Recently he had a tie-up with one of my friend, for a house in Vasant Vihar, costing about 1.86 crore. 

TEHELKA: Okay, General Choudary? 

PANT: Yes. That is why I know his ins and out. I have told him, "Brother, how do you get so much of money?" He says, "No, no…"

[All laugh] 

PANT: I said, "Saala, I will have you locked up." 

-8-

Pant also gives instructions about what kind of gifts to take for the Generals. He says he knows everything about their dealings inside out.

PANT: Give him some gift, that is it. That would be much, much better because both of them know me personally. They may not take anything in my presence, but as a gift wrap you give him then. 

SASHI: Let's pick up a nice gift. 

TEHELKA: Okay, what gift do we give? 

PANT: Give anything. 

TEHELKA: You tell us…what gift? 

PANT: Gold chain or something like that. 

TEHELKA: Okay, okay, sir. Costing is around? 

PANT: Must be around 9-10,000. 

TEHELKA: That's all? 

PANT: Yes, right now only this much. Not all at once. Again I'll tell you and then you give more. 

SASHI: Then we'll give later. Okay? 

SASHI: Sir, New Year is also coming in December. Then we can more…we can cultivate more things. 

PANT: General Choudary's wife basically, and the daughter, they have been doing all this. You have to move through them. 

26

TEHELKA: Okay. 

PANT: We will take you to his residence. I know about all their transactions and what all they do. That's why I say, "Saala, where did you get so much from?"

Pant also takes a bribe of Rs. 20,000 in the first meeting and says that it's Choudary's wife and daughter who sometimes act as his middlemen.

PANT: No problem. 

TEHELKA: Nothing, I want give a…present a small presentation. 

SASHI: I didn't go to the shop also. 

[Tehelka hands over two bundles of hundred-rupees notes amounting to Rs. 20,000.] 

TEHELKA: Twenty thousand. 

[Pant gets up from the seat.] 

PANT: No, that's what I said. We will make a presentation for that, then we will go for this. 

SASHI: I forgot the shop, I recognized the little girl's voice; I thought I'd have to go again for her to Mehrasons. 

PANT: No, no, no. Not that. I will prepare the brief…on the basis you discuss with them. 

TEHELKA: Okay. 

PANT: For General Choudary we will meet at Vasant Vihar. 

TEHELKA: Okay. 

PANT: Vasant Vihar.The flat he has bought little recently. We will meet there. But he doesn't meet there at his house. 

TEHELKA: Yes, yes. 

PANT: So, the place where he will meet, you know. So, you have to arrange like this only, because this is such a thing. 

TEHELKA: Sir, if they need any kind of funds also, we can arrange it also. 

PANT: That we…let us get something out of it, let us get some orders only, after that only we will…

SASHI: Evaluation or some movement. 

PANT: We will discuss everything with them, yaar. They are very open on all this. 

TEHELKA: Okay. 

27

PANT: That's why I said there are certain places where they meet. I know the places where they meet. His daughter and his wife, they basically look after these things. You know, there is a channel, everybody…everybody is acting on those. 

SASHI: And, we can take a gift. This gold coins? Small…

PANT: Gold coin; last time I have sent one MMTC coin. 

SASHI: Okay. MMTC coin, like that we…Mehrasons, I think…

TEHELKA: That…that I will arrange.

* * *

While Pant is busy organizing meetings of West End with Major General Bhatnagar, Infantry chief Major General Shankar Prasad, Major General S.K. Choudary, and Additional Secretary of Defence L.M. Mehta, on numerous occasions meetings fail to take place for mundane reasons. Eventually it was felt that there was no point meeting Bhatnagar as he was retiring in December. As for General Prasad, he called West End a couple of times basically to say that 'his' work would start only after the evaluation trials were ordered by Choudary. However, Pant introduced us to two big defence middlemen. RSS trustee R.K. Gupta, his son Deepak Gupta and the Consulate General of Belize, Mohinder Pal Sahni. Here's how R.K. Gupta's name first comes up.

PANT: I have introduced him to him. I said, This is the man. I know his father. I know his…both, son and father. Both. And, of course, he is very younger to us, but his father has cultivated him like this. And he says, he's not shown much. But his father knows everybody. In fact, PM and he used to stay in their house in GK in '77…'75, '76, '77. I have seen him there. Vajpayee used to live there in his house[R.K. Gupta's house]. And he's given one of his Jhandewalan buildings to RSS. That building was owned by R.K.Gupta. He has donated to his RSS people. 

TEHELKA: This man is doing…Mr. Gupta is doing some kind of liaisoning also? For big people? 

DEEPAK CHHABRA: Yeah, for big people. 

TEHELKA: Sir, we are not a small people.

* * *

On November 26, Pant takes us to meet Deepak Gupta at his Mehrauli farmhouse residence. Deepak Gupta, son of R. K. Gupta, the RSS trustee, 

talks in detail about how he will help West End bag the order and also

talks about his sphere of influence in the government.

DEEPAK GUPTA: Whatever you want in the Ministry of Defence…I am using the word "Ministry of Defence" 

TEHELKA: Okay. 

DEEPAK GUPTA: I am not using…not using the word "user". 

TEHELKA: Okay. 

28

DEEPAK GUPTA: I may not be able to help you at the user level…because there may be clash of interest…

TEHELKA: Yeah. 

DEEPAK GUPTA: Plus also, I don't use the user. I use other people to handle the user. 

TEHELKA: Okay. 

DEEPAK GUPTA: That is why there is a…there could be a clash of interest. 

TEHELKA: Okay. 

DEEPAK GUPTA: The entire ruckus is because of that. We will take over the MoD. We don't get into the user. If user, he can handle himself…

PANT: Hmm. 

DEEPAK GUPTA: …and the bureaucracy looks at you…. You see, unless the user clears you…

TEHELKA: Hmm. 

DEEPAK GUPTA: …as a vendor…

TEHELKA: Hmm. 

DEEPAK GUPTA: You see, first step…I don't know what the stage of your project is. You will have to submit your project…you will have to go through….

[Pant's mobile phone rings and he talks to caller while Gupta and Tehelka continue their conversation] 

DEEPAK GUPTA: Tatkal. 

TEHELKA: Yeah. 

DEEPAK GUPTA: MGO normally has three suppliers. 

TEHELKA: Yeah. 

DEEPAK GUPTA: You have to be one of them. 

TEHELKA: Yeah. 

DEEPAK GUPTA: If you become one of the three…

TEHELKA: Hmm. 

DEEPAK GUPTA: Then it is my job to pick you up. 

TEHELKA: Okay. 

DEEPAK GUPTA: You see, what happens is, that whole report is sent to the MoD. 

TEHELKA: Pardon? 

29

DEEPAK GUPTA: User sends the report to the Ministry of Defence. 

TEHELKA: Yeah. 

DEEPAK GUPTA: Say, I have short-listed three suppliers. 

TEHELKA: Okay. 

DEEPAK GUPTA: And let's say, you are one of the three suppliers. 

TEHELKA: Okay. 

DEEPAK GUPTA: Now once you are one of the three suppliers, then they will have the tendering process. 

TEHELKA: Okay. 

DEEPAK GUPTA: After which they have their PNC. That's where we can help you. 

TEHELKA: Hmm, hmm. 

DEEPAK GUPTA: Where we can tell you what to fill; what are the other rates that are likely to come. 

TEHELKA: Okay. 

DEEPAK GUPTA: Because unless you are the lowest, or you are a supply holder nobody will help you. 

TEHELKA: Okay. 

DEEPAK GUPTA: Now, political help comes only in areas where either you are L-1 or you are single vendor. 

TEHELKA: Yeah. 

DEEPAK GUPTA: Now, if you look at the entire Russian business, it is all single vendor. 

TEHELKA: Okay. 

DEEPAK GUPTA: Okay? So…there is no question. See, if we have to buy T-90, then we only have to buy T-90. 

TEHELKA: Okay. 

DEEPAK GUPTA: There's nothing else. When we have to buy Sukhoi-30, it is only Sukhoi-30. When we have to buy Goldskoff, it is only Goldskoff. So there's no competition. 

TEHELKA: Yeah, exactly. That is true. 

DEEPAK GUPTA: But when you bid small products…

TEHELKA: Haan? 

DEEPAK GUPTA: And it's not small, let me tell you. A Thermal Imaging and Night-Vision binoculars is used. 

30

TEHELKA: Yeah. 

DEEPAK GUPTA: In fact, there is a PNC on in the first week of December to upgrade the T-72…where 250 tanks are going in for upgradation. 

TEHELKA: Okay. 

DEEPAK GUPTA: That's an order of about 400 crores. Okay? Thereafter, they are going to give another 750 units. Like this they will carry on. 

TEHELKA: Okay. 

DEEPAK GUPTA: So…yours is hand-held, which would be for the infantry, I guess? 

PANT: Yeah.

* * *

DEEPAK GUPTA: Tell me one thing. 

PANT: Hmm. 

DEEPAK GUPTA: If secretary's told…

PANT: Hmm? 

DEEPAK GUPTA: If Defence Secretary's told, can Defence Secretary ask W.E. to go in for trial? 

PANT: Yeah, certainly. 

DEEPAK GUPTA: That I will do. That I will do. 

TEHELKA: No, that…that I will tell you that difficulties of that also. Sir, I asked this matter also. 

PANT: General Choudary is a man basically they are looking for. 

TEHELKA: I…I asked this matter also. 

DEEPAK GUPTA: General P.S.K. Choudary is our…

PANT: Hmm. 

DEEPAK GUPTA: Only he takes too much money. If he is ready to give the money, then we can discuss it with General Choudary. If he's willing to spend the money, I'll try…

TEHELKA: Yeah, sir, I'm willing to spend, no problem…

DEEPAK GUPTA: I can talk to even General Choudary, let's talk. 

PANT: All right. How much should we fix the deal at? 

DEEPAK GUPTA: Right.

* * *

31

Deepak also impresses West End with his clout in other areas.

DEEPAK GUPTA: Let me tell you briefly my job profile. My job profile is Power, Defence, Telecommunication and highways. 

TEHELKA: Aviation? 

DEEPAK GUPTA: Highways. Highways. 

TEHELKA: Highways. 

DEEPAK GUPTA: And these four areas…whatever money that has to go to the government, goes through me. 

TEHELKA: Okay. 

DEEPAK GUPTA: Which gives me the access to get any instructions done. 

TEHELKA: Okay, okay.

* * *

In the next meeting, Deepak explains what problems there would be if he took

up the liaisoning work of West End. He said that West End's competitors Thomson-CSF and El-Op have already struck deals and it might be too

late. Then he goes on to giving details how exactly he operates.

DEEPAK GUPTA (continuing): Let me explain to you my operation or you will not understand. 

TEHELKA: Yeah. 

DEEPAK GUPTA: I operate from the PMO. 

TEHELKA: Okay. 

DEEPAK GUPTA: Okay? Brajesh Mishra gives in suggestions…

TEHELKA: Okay. 

DEEPAK GUPTA: "Do this, do this." "This needs to be done", "This file needs to stop…."

TEHELKA: Hmm. 

DEEPAK GUPTA: "…this file needs to begin." 

TEHELKA: Hmm. 

DEEPAK GUPTA: So we are in a area of big fish. We catch big fish. We don't catch small fish. 

TEHELKA: Hmm, hmm. 

32

DEEPAK GUPTA: We catch the big fish. If you want to catch the big fish, it is 35 per cent business. 

TEHELKA: That is true. 

DEEPAK GUPTA: It is 35 per cent business. 

TEHELKA: Hmm. 

DEEPAK GUPTA: You understand? We don't catch the small fish. But while the net is put for the big fish, there are people who hold the net. There is Defence Secretary, there are some joint secretaries…

TEHELKA: Hmm. 

DEEPAK GUPTA: So I come to know. 

TEHELKA: Hmm. 

DEEPAK GUPTA: They know this man operates from the political area. So be good friends with him. 

TEHELKA: Okay. 

DEEPAK GUPTA: And I always tell them, "You need not be free friends…"

TEHELKA: Haan. 

DEEPAK GUPTA: "You know what to do with your money." 

TEHELKA: Hmm. 

DEEPAK GUPTA: So, we have good relations. Now, at the user level, when it comes to army, air force…I have people who are operating in small areas. Small-time agents. They can be worked upon for clearances. "Clear our money…" "Clear our order…" Because main payment goes to bureaucracy and politicians. You see, in order, if you want political interference politicians take four-five per cent, bureaucracy takes two per cent, user takes only one per cent. Eight per cent. Maybe one or two per cent expenses. 

TEHELKA: Again tell me, politician will take? 

DEEPAK GUPTA: Four-five per cent. 

TEHELKA: Okay. 

DEEPAK GUPTA: Bureaucracy will take two per cent. 

TEHELKA: Okay. 

DEEPAK GUPTA: One per cent user will take, you know, out of….

TEHELKA: Yeah, yeah. Total will be at 10? 

DEEPAK GUPTA: Eight. Eight. 

TEHELKA: That's all. 

33

DEEPAK GUPTA: Basically there are other expenses, you know. You have taken project two years, three years to do…. Expenses…it's another two per cent. 

TEHELKA: Yeah. 

DEEPAK GUPTA: Ten per cent is your expense. Commission in this business is 15 per cent. 

TEHELKA: Total commission? 

DEEPAK GUPTA: Then you make five per cent. I'm talking from an agent's point of view.

* * *

DEEPAK GUPTA: I know two people who know Gen Choudary. 

TEHELKA: Hmm. 

DEEPAK GUPTA: One is Deepak Chhabra…

TEHELKA: Hmm. 

DEEPAK GUPTA: And the other man is a chap called Sharma. He works for my 

company. 

TEHELKA: Haan.

DEEPAK GUPTA : But I prefer Chhabra to Sharma.

TEHELKA : Okay.

DEEPAK GUPTA : Because Chhabra will deliver goods. Sharma has a habit that

first give the money.

TEHELKA : Hmm.

* * *

Deepak also introduces us to a second-rung defence fixer called Rakesh Nigam who claims a direct in with Defence Secretary Yogesh Narain.

RAKESH NIGAM: No, no. The commission you spelt out, 17 per cent, that will come at a later stage. We will not ask you for a letter or anything until we are sure about whether we can perform or not. But to make a breakthrough within that 17 per cent there is going to be…there could be something known as teething problems. Teething expenses…which you have to meet. How much, that's what I am asking you. 

TEHELKA: You see, you are talking about the token amount? 

RAKESH NIGAM: Yeah. 

34

TEHELKA: Token amount is if you can arrange a meeting with this man, Defence Secretary. It's just a half kind of promise from his level. It won't be work out in 2000, it maybe in 2001. Now on-the-spot I can give two lakh rupees. 

RAKESH NIGAM: Mr. Mathew, I will give you 25 lakhs of rupees. You arrange for my meeting with one of my contacts…with Defence Secretary. People here talk in crores, you are talking two lakhs and five lakhs…

TEHELKA: Sir, this is when nothing has happened. 

RAKESH NIGAM: Obviously…no, no, Mr. Mathew, for organising a meeting is a very big breakthrough. It's not, just not…it's all going to be official. 

TEHELKA: Yeah. 

RAKESH NIGAM: Nothing off-the-record. Which will happen. And getting an access there is itself an opening. Yeah, we are going to be looked after. If…let's talk in terms where we can really make a breakthrough with the business. Two lakhs, five lakhs, 10 lakhs people just throw…for entertaining. Recently Deepak and I just incurred an expenditure of about a lakh rupees, a week back.

* * *

Nigam talks about a deal with former Minister of State for Defence, Hiren Pathak, in which he gave him kickbacks worth Rs. 1 crore.

TEHELKA: Did this man introduce lot of finance last year. Financial advisors and some defence officers…those who are related W.E. I am not blaming him. If minister is unable to reach him, then how can…?

RAKESH NIGAM: Very strange. Hiren Pathak is a very bold person. One or two jobs he did for me, and we exchanged bags. And things moved very smoothly. 

TEHELKA: Which one? In the foreign deal? 

RAKESH NIGAM: Yeah.

* * *

RAKESH NIGAM: That is the very reason that you have been in this business and have not been able to make a proper breakthrough. Your own, your person whom you are naming their own ministers…I got one job…just for a breakthrough. For six years this project, they were not getting any breakthrough. I was getting competition from companies like…people like Chaudhary and Nanda. I gave one CR and things started moving. 

TEHELKA: CR means? 

RAKESH NIGAM: One…

TEHELKA: One crore? 

RAKESH NIGAM: For MTR. 

TEHELKA: MTR is? 

RAKESH NIGAM: Germany. 

35

TEHELKA: Okay, that is a HAL thing. 

RAKESH NIGAM: HAL thing. 

TEHELKA: What was that? 

RAKESH NIGAM: Engines. For six years they were getting fucked in Delhi and the Indian agent was screwing them. 

TEHELKA: So Mr. Hiren Pathak…

RAKESH NIGAM: Yeah, but I don't want to name and very few people know about this. 

TEHELKA: Haan. 

RAKESH NIGAM: Very few people.

* * *

RAKESH NIGAM: I will give you an example of MTR. You must have heard of Daimler Chrysler? 

TEHELKA: Which one? 

RAKESH NIGAM: Daimler Chrysler. Mercedes people. Mercedes is a very small project for them. Daimler Chrysler is a big group for defence. 

TEHELKA: Daimler Chrysler…in Germany? 

RAKESH NIGAM: Massive…bloody this thing. And I am doing job for them. 

TEHELKA: In the ministry? 

RAKESH NIGAM: In the ministry. 

TEHELKA: That one you succeed in. 

RAKESH NIGAM: Yeah. 

TEHELKA: In HAL? That is a jet trainer, I think that…no? 

RAKESH NIGAM: No, no, no. This is for the ALH - Advanced light helicopters. ALH. 

TEHELKA: Okay. Already signed deals? 

RAKESH NIGAM: No, not deals. Just…

TEHELKA: Breakthrough? 

RAKESH NIGAM: Got a breakthrough. 

TEHELKA: That is a big thing. 

RAKESH NIGAM: It has been going on for seven years. And the bloody Indian agent was screwing these people. Dr. Fisher and Heinz. I gave him results within a time of 20 days. 

36

TEHELKA: Do the same for us also. 

RAKESH NIGAM: No, no. We have to develop a confidence in each other. Everyone…look, in Delhi, Mr. Mathew, you will find bloody out of 100 people, 90 people who will tell you, "I am this, I am that and I am accessible to the Prime Minister." Little do you know that they are only accessible to the gardener of the Prime Minister. 

TEHELKA (laughs): That is true. 

RAKESH NIGAM: I have been in this business for…I own a very low profile. 

TEHELKA: Okay. 

RAKESH NIGAM: You may not even heard of my name by now. 

TEHELKA: Yeah, first time I am…

RAKESH NIGAM: Defence Secretary appointment, I came to know one-and-a-half months back. I told Deepak Gupta. He said, "Nigam sahab, Rakesh bhai, really I am astonished…" And the rapport I have, is seen to believed.

* * *

Of course, now we go straight to West End's first meeting with R.K. Gupta. It was Pant who took us there. Gupta straightaway talks about his Atal Behari Vajpayee connections and what the Prime Minister has told Bangaru Laxman.

R.K. GUPTA: PM told Bangaru Laxman, whatever Gupta says, do it. 

PANT: Haan. 

R.K. GUPTA: Our national treasurer is here, Ved Prakash Goyal…

PANT: Ved Prakash Goyal…

R.K. GUPTA (continuing): …said whatever work is there, get it done through him. 

PANT: Hmm. 

R.K. GUPTA: If you want money, then tell him so. 

PANT: They should do…their work. Then they should do it like that. 

R.K. GUPTA: You have to give letter. 

PANT: If Bangaru Laxman can get it done, then nothing like it.

* * *

Gupta talks about how much West End will contribute to the party fund,

how the commission percentages will be divided, how he finished

37

both Ranjan Bhattacharya and Brajesh Mishra, Principal 

Secretary to the Prime Minister, in one deal.

R.K. GUPTA: This minister is a fool. Bangaru Laxman is a useless fool. 

PANT: Yes. 

R.K. GUPTA: You tell him this, this work has to be done. 

PANT: If Bangaru tells him…

R.K. GUPTA: To whom? 

PANT: Who should we ask to do the work? 

R.K. GUPTA: We should tell Bangaru that Brajesh Mishra should order from Defence Ministry. 

PANT [turning to address tehelka]: Brajesh Mishra, principal advisor to PM, he will order the George Fernandes, Defence Minister, or recommend some of this. 

TEHELKA (interrupts): We are…

PANT & R.K. GUPTA: (together) Defence Secretary. 

TEHELKA: Sir, we are ready to give the party fund also, no problem. The token also. 

R.K. GUPTA: No, no. What is the total cost of the project? 

TEHELKA: Sir, total cost of the project is a big one. 

R.K. GUPTA: How much? 

TEHELKA: Now we are expecting…we will get around 40 crores or 50 crores. Small lot. 

R.K. GUPTA: How much is the commission given to the party? 

TEHELKA: Tell me, sir….

TEHELKA: I…I will tell you, sir, that nowadays for the binoculars…in the hand-held…

R.K. GUPTA (interrupts): I got some order for Russians? 

TEHELKA: Hmm. 

R.K. GUPTA: They give 12 to 15 per cent. 

TEHELKA: Yeah. 

R.K. GUPTA: But they take back 50 per cent themselves. The rest is given. Out of that, users, they take one per cent…

TEHELKA: They take two per cent. 

38

R.K. GUPTA: Users? 

TEHELKA: Yeah. 

R.K. GUPTA: Okay. They will take two per cent. I have given only one. 

TEHELKA: Yeah. 

R.K. GUPTA: And the Defence Secretary will take…

TEHELKA: One per cent. 

R.K. GUPTA: One…one-and-a-half per cent. He'll settle with one. 

TEHELKA: Yeah. 

R.K. GUPTA: Plus there are other…

TEHELKA: …bureaucrats…

R.K. GUPTA: …bureaucrats. Joint secretaries, all the others…from where we have to start. 

TEHELKA: Yeah. 

R.K. GUPTA: I'll get it done for quick. 

R.K GUPTA: No problem. First Bangaru will speak to him, I will…speak to …plus we'll also bridge them. Party fund will be at least two-three per cent. 

TEHELKA: Okay. Ready to give. No problem. 

R.K. GUPTA: I'll get it done. My job. 

TEHELKA: Ready to give. No problem. 

[Pause] 

R.K. GUPTA (pointing to Pant): He's like our younger brother. Whatever he orders, it will be done. Because our relations are not from today. When Mr. Tewari was Finance Minister, since then we know him. 

PANT: My son from the US just came. 

TEHELKA: Yeah, yeah. 

R.K. GUPTA: This my…son won't handle…I will handle personally. Myself. 

TEHELKA: Sir, Ranjan also…Mr. Ranjan Bhattacharya….

R.K. GUPTA: But he has been asked to keep off. 

TEHELKA: Okay. 

R.K. GUPTA: In one deal…I killed Ranjan and Brajesh Mishra both. Got through directly. PM blasted him. 

39

[Pause] 

R.K. GUPTA: There are ways to do things. First we will make a plan. Your order is ready? 

TEHELKA: Yeah, everything is ready. 

R.K. GUPTA: There we're wanting some political…?

TEHELKA: Sir, if a political pressure will be there. So, already, sir, they've short-listed. Sir, and there is a big kickback…is going in the users' side and bureaucratic…

R.K. GUPTA: No, no, just listen. If Brajesh Mishra tells the Defence Secretary, "It has to be done," the Defence Secretary's the last word… [gestures] 

TEHELKA: Yeah, exactly. 

[Pant and Gupta talk in inaudible tone] 

R.K. GUPTA: This Yogesh Narain I went to…

PANT: Haan, Yogesh Narain…

R.K. GUPTA: So that…I…Yogesh Narain, I will get it spoken to by the PM. 

TEHELKA: Okay. 

R.K. GUPTA: Not PM himself. Brajesh Mishra is PM. After that I'll talk to Yogesh myself. I know him very well. He will want that somebody should tell him. Okay? Then I'll tell Bangaru Laxman…

TEHELKA: Hmm. 

R.K. GUPTA: That "Sir, this is a 40 crores worth order. Out of this party will… How many crores will it get?" 

TEHELKA: Three per cent. That's very clear. 

R.K. GUPTA: Not like this. Give one crore, two crore…don't give them percentage. 

TEHELKA: Three per cent. 

R.K. GUPTA: They are not bothered about percentage. 

TEHELKA: Haan. 

R.K. GUPTA: They are bothered about "what we'll get", money! 

TEHELKA: Okay. 

R.K. GUPTA: Like for now, you will not give one crore or two crore. 

PANT: Give one or two, that's it. Let's say one. 

TEHELKA: One. One crore. 

40

R.K. GUPTA: It's the first order. First take the order and get them under your thumb. Then…first you give more, then you give less. 

TEHELKA: Okay.

Within the RSS, Gupta's known as a 'super' trustee. His proximity

with both Prime Minister Vajpayee and L.K. Advani is lore. Both

have been tenants at his properties. He has also helped establish

the RSS headquarters in Jhandewalan, Delhi, in 1967.

R.K. GUPTA: With this party, we have built their RSS headquarters in '67. 

TEHELKA: Delhi? 

R.K. GUPTA: Delhi. In '67 I spent more than 50 lakhs of rupees to build that headquarters. 

TEHELKA: In '57? 

R.K. GUPTA: '67. 

TEHELKA: '67. In Jhandewalan? 

PANT: Jhandewalan. 

R.K. GUPTA: It's built by me. 

TEHELKA: Hmm? 

R.K. GUPTA: It's built by me. Free-of-cost. 

TEHELKA: Okay. 

R.K. GUPTA: We know anybody there…you go there and say, "Who made this? It's very good. Who made it?" And they will tell you, "It was made by Raj Kumar, a RSS worker, free of cost." And they tell this to everyone. 

TEHELKA: Hmm? 

R.K. GUPTA: They're telling this to everyone.

* * *

R.K. GUPTA: In Emergency, I gave…given them one crore 10 lakhs when nobody was even prepared to listen to telephone calls. And 500,000 dollars. In London and USA. 

TEHELKA: Okay. 

R.K. GUPTA: And became the sole trustee of Friends of India Society International. This is a society floated by me. I'm still sole trustee. When you come to me, I will take you to BJP. You will see how…see how they respect. 

41

TEHELKA: Okay, okay. 

TEHELKA: You are basically from RSS? 

[Gupta nods] 

PANT: He's the trustee…

R.K. GUPTA: You have to have this big heart [makes a gesture] if you want to work. This much I can guarantee you, your money will never go waste. I only take personal responsibility. 

TEHELKA: Thank you, sir. Thank you. 

R.K. GUPTA: Because I can force them. 

TEHELKA: Hmm. 

R.K. GUPTA: I can also slap on the face if they don't do the work. If it's not paid back, I will have to pay the money. I will pay, don't worry. 

TEHELKA: Sir, I have full faith of you. Hundred per cent faith.

* * *

R.K. GUPTA: Monday evening I will be on your work. But you have to have some money. 

TEHELKA: Okay, I have

R.K. GUPTA: You know…[now explains along with hand gestures]…"Sir, this is five lakh rupees." 

TEHELKA: Okay. 

R.K. GUPTA: When I do the work…I put 20-25 lakhs in my pocket…

TEHELKA: Hmm. 

R.K. GUPTA: I will just go and give to these…. Like Defence Secretary…five lakhs…[dismisses with hand gesture] Then Ved Prakash Goyal. Five lakh rupees for the party. "Can I take this work, sir?" Then I go to Bangaru Laxman. You just give them for no work. There are people who don't even….

TEHELKA: We have to give…Bangaru Laxman ? 

R.K. GUPTA: No, not Bangaru Laxman. Ten lakhs is too less. I will give to Defence Secretary. 

TEHELKA: Okay. 

R.K. GUPTA: Then Ved Prakash Goyal, treasurer of the party. 

TEHELKA: Okay. Treasurer of the party? 

R.K. GUPTA: Treasurer of BJP. 

TEHELKA: Yes. 

42

PANT: Ved Prakash Goyal. 

TEHELKA: Okay, Brajesh. 

R.K. GUPTA: Not Brajesh…

PANT: Ved Prakash. 

TEHELKA: Okay, Ved Prakash. 

R.K. GUPTA: Brajesh's price is one crore. I don't want to go to him with money. 

[Pause] 

R.K. GUPTA: We will handle them. Don't worry. 

TEHELKA: Okay. 

R.K. GUPTA: You keep Rs. 20-25 lakhs ready. Then blast your work. 

TEHELKA: Okay, sir.

* * *

At a later meeting, Gupta discusses the modalities further.

He admits to giving the BJP 3-4 crores every month.

TEHELKA: No, I am telling that, because we have already spent more than 45 lakhs of rupees. 

R.K. GUPTA: That is your job. We are spending crores. 

TEHELKA: Yeah. 

R.K. GUPTA: Come to the office, then you will know how much expense we're maintaining. 

TEHELKA: Yeah. 

R.K. GUPTA: Bangaru, I can walk in any moment I like. 

TEHELKA: Okay. 

R.K. GUPTA: Do you think I will take you and then give…?

TEHELKA: No, no, sir, tell me, how do I transfer the money? Tell me? 

R.K. GUPTA: Hmm. You give the money to me, I will give it to him…

TEHELKA: Okay, okay. 

R.K. GUPTA: …at my leisure and whenever I think opportunity is right. 

43

TEHELKA: Okay. 

R.K. GUPTA: As I keep on giving every month. 

TEHELKA: Okay. 

R.K. GUPTA: …almost three-four crores. 

TEHELKA: Okay. 

TEHELKA: Sir, I have to give twenty-five to your hand? 

R.K. GUPTA: Yeah. And you tell me the work also. So that we have to do the work properly. 

TEHELKA: Okay. 

R.K. GUPTA: You know, unless your file is prepared from below, nothing can be done. 

TEHELKA: Okay. 

R.K. GUPTA: Because up to Joint Secretary and Under Secretary, I have…arrangements. 

TEHELKA: Okay. 

R.K. GUPTA: Pay money, get work done. 

TEHELKA: Okay. 

R.K. GUPTA: So from below the users, file must move properly. 

TEHELKA: Okay, sir. 

R.K. GUPTA: If there are three bids…

TEHELKA: Okay, okay. 

R.K. GUPTA: …you are also one of them. 

TEHELKA: Okay. 

R.K. GUPTA: …then they have the option to select you and reject others. 

TEHELKA: Okay, sir. 

R.K. GUPTA: But from…somebody should work from below, no? 

TEHELKA: Okay. But, sir when…?

R.K. GUPTA: Your work will be done. You will see the result in three-four months. Immediately you will start getting orders. 

TEHELKA: Okay, that I have to give that 25 to your hand…

44

R.K. GUPTA: Yeah. 

TEHELKA: …and you will give that…[gestures]. That is not my headache. 

R.K. GUPTA: But when your principal comes…

TEHELKA: Haan. 

R.K. GUPTA: I'll then take him to our treasurer. Not Brajesh Mishra. 

TEHELKA: Okay, okay, okay. 

R.K. GUPTA: I don't deal with them because they are bureaucrats. 

TEHELKA: Okay. 

R.K. GUPTA: This is…

TEHELKA: BJP treasurer? 

R.K. GUPTA: …the treasurer and the president. 

TEHELKA: Okay. 

R.K. GUPTA: I have been asked by…PM only to meet with them and they will get our work done. 

TEHELKA: Okay. 

R.K. GUPTA: Settle with them…

TEHELKA: Okay. 

R.K. GUPTA (continuing): …your work is done…we will pay you so much. 

TEHELKA: Sir, I don't know how to work out. That is the problem.

Gupta also talks about how they build up a project from Brazil for two-and-a-half years. How they employed Generals and Brigadiers from the Indian Army and spent Rs. 10 lakh a month and how they are confident about getting an order before December 31 [ 2000]. But moving on, Gupta details further how he will handle the project. He is confident of doing the project within 6 months.

R.K. GUPTA: And we take from them. In six months the project will be built up. Complete project will be built up. 

TEHELKA: Okay, okay, okay. 

R.K. GUPTA: Then at the highest level…

TEHELKA: Hmm. 

R.K. GUPTA: Secretary of Defence is the highest boss. 

TEHELKA: Okay, okay. 

45

R.K. GUPTA: That "Sir, we are interested in this project. How should we go?" Once you have built ground below. Then he will say, "Okay, I will charge this much. One per cent, one-and-a-half per cent." Then rest you manage below. Everything. Users and other things…. Then when 40 crores…total expense how much is possible…six per cent, seven per cent, eight per cent. 

TEHELKA: Yeah. 

R.K. GUPTA: Okay? 

TEHELKA: I got it. 

R.K. GUPTA: Then we give…when the tender is given to us…we are the lowest, we have been granted… They'll place orders, open the LC. It is very, very clear.

Gupta admits to expecting commissions of around Rs.100 crore in

the year 2000. He says if the Defence Secretary wants money, 

he will give it with his 'own' hands.

R.K. GUPTA: I have direct relations with the Defence Secretary. 

TEHELKA: Sir, Naresh Nigam entered the plan and I had some doubts about him.

R.K. GUPTA: Nigam is a small type of person. Give him 10,000, 4,000, plane ticket to Bombay. We oblige him. 

TEHELKA: Okay. 

R.K. GUPTA: How does it matter? When the game is big, when I am expecting commission this year…myself commission…100 crores…

TEHELKA: Okay. 

R.K. GUPTA: …why should I bother about him, giving him, two, three, four, ten lakhs? 

TEHELKA: Yeah, yeah, that's all. 

R.K. GUPTA: I don't care. 

TEHELKA: Okay, okay. 

R.K. GUPTA: He's a small timer. 

TEHELKA: Now I got it, the picture, sir. 

R.K. GUPTA: Defence Secretary when he wants money, I'll give him with my own hand. That, "Sir, this is a cheque worth two crore…" So I'll tell your principal to deposit in his account. 

TEHELKA: Okay. 

R.K. GUPTA: Hmm. 

46

TEHELKA: That's all. 

R.K. GUPTA: And this party people…that they are supposed to settle for two per cent. 

TEHELKA: Haan. 

R.K. GUPTA: Out of 40 crore order, suppose it's one crore per annum. 

TEHELKA: Hmm. 

R.K. GUPTA: For one or two crore. 

TEHELKA: That also…that also is sanctioned...one crore? 

R.K. GUPTA: No, no. Just listen. When the order is with us…LC is with us…then we are paid. Drawdown 30 per cent payment they give, no? Twenty per cent payment. When you get the payment, then you pay them. Which account, they will nominate it. Send. Finished. 

TEHELKA: That's all.

* * *

R.K. GUPTA: Now we have beaten everybody. Americans had come, Israelis had come, South Africans had come. European friends. 

[Pause] 

TEHELKA: Sir, Defence Minister, he will not take the money. 

R.K. GUPTA: Who? 

TEHELKA Defence Minister. 

R.K. GUPTA: We have already tied with Jaya Jaitly. 

TEHELKA: Tie-up? 

R.K. GUPTA: Samata Party General Secretary. 

TEHELKA: Okay. 

R.K. GUPTA: Defence Minister. One or two per cent. We'll settle with Jaya Jaitly. It's her job to give him or not give him. Our file is signed. She takes the money. 

TEHELKA: That's all. 

[Gupta makes gesture]

Shockingly, fuelled by a sense of his own power, he talks again about

how he cut-up Ranjan Bhattacharya in a deal. Bhattacharya has

a reputation as a fixer-dealer. The gory details…

47

R.K. GUPTA: Ranjan Bhattacharya is doing for himself. He is Prime Minister's son-in-law. 

TEHELKA: Yeah. 

R.K. GUPTA: You know that? 

TEHELKA: Pant Sahib told me. 

R.K. GUPTA: He is Prime Minister's son-in-law. I've cut him into pieces. I've gone through the party. PM can't say no. Party's getting 100 crores. He won't say, "No, my son-in-law's getting 100 crores. Leave it." We are his father's father [pointing to himself]. 

TEHELKA: Yeah. 

R.K. GUPTA: And he doesn't know my name also, though he has been coming to my office hundred times. He doesn't know that my uncle has cut me to pieces. He calls me uncle. I've cut him to pieces. He doesn't know it. Who's the man who has taken half the order and we're left high and dry. He's still trying to find out who is the man behind it. He can't find out. If he find out then I'm not a good operator. 

[The Tehelka Investigative Team member gets up and shakes Gupta's hand]

* * *

TEHELKA: Okay. No, the people told me. Mr. Pant also told me. In fact, users also told me that this man is behind CSF-Thomson. 

R.K. GUPTA: Then they get more money. 

TEHELKA: Yeah. 

R.K. GUPTA: These generals-venerals, you keep…you strike them off. There's a question of fighting for the divide. 

TEHELKA: And I got the information that CSF-Thomson is not allowing to...West End into...enter the defence sector. 

R.K. GUPTA: We will see. 

TEHELKA: This is the...scenario. 

R.K. GUPTA: That is…we have to fight for that. We would have fought against him and then got this order. 

[Pause. Tehelka journalist makes another drink] 

TEHELKA: Ranjan is powerful man, hain? 

R.K. GUPTA: Naturally. 

TEHELKA: Last time PM visited in US…for that function. That time the CSF-Thomson people tie up with Ranjan in US. 

R.K. GUPTA: They met the PM? 

48

TEHELKA: Yeah, they met the PM. 

[Pause] 

TEHELKA: So, our people went there to meet PM. 

R.K. GUPTA: Aah. 

TEHELKA: We won't allow to…(laughs) 

R.K. GUPTA: You know...how to cut him into business. The party will first go to PM. "Party is getting so much of money from them. We want to do this work." 

TEHELKA: Not individual? 

R.K. GUPTA: Not individual. 

TEHELKA: Party gets it. 

R.K. GUPTA: The Prime Minister has no guts to say he should be given, not party.

TEHELKA: Naturally (laughs). 

R.K. GUPTA: So we operate in a different manner. 

TEHELKA: Yeah. Operate it through party…Okay. 

R.K. GUPTA: And Ranjan knows my strength in the party. The RSS. 

TEHELKA: That is the backbone of BJP. 

R.K. GUPTA: Once he comes to know his uncle was operating behind the scene, he'll come running here that "Uncle, why are you doing this." 

[Both laugh] 

R.K. GUPTA: "You are not talking to your uncle. Uncle is bloody no man. You are the PM's son-in-law. Uncle has given his life for the this...party." 

TEHELKA: Hmm. 

R.K. GUPTA (pointing to his left leg): I have four bullet wounds here. 

TEHELKA: Hmm? 

R.K. GUPTA: I have four bullet wounds in this leg. It's all because of them. 1947…6th March, 1947. Riots. I got six, four bullet wounds here. 

TEHELKA: Okay. 

R.K. GUPTA: Atal-ji has been staying in my house for 17 years. 

TEHELKA: Who? Atal-ji. Here?

49

R.K. GUPTA: Chandigarh. Here, he has come three-four times.

* * *

R.K. GUPTA: Sukhoi deal I got done. 

TEHELKA: Okay. Sukhoi? 

R.K. GUPTA: I got done. 

TEHELKA: Russian deal? Sometime…?

R.K. GUPTA: I called them. 

TEHELKA: Why? From Russian deal? 

R.K. GUPTA: T-90 I got done. 

TEHELKA: Okay. 

R.K. GUPTA: They signed. They were very happy. They said, "It is very easy now." I said, "Look, you do like this, your files will be locked here." Again they…something went wrong with them. When the files were locked, then they came back. I said, "You can't eat up money like this. Because we are not eating your money ourselves. We have to pay to persons. The user will bloody well tell you if there are hundred defects in your product. Or bureaucracy will put a spoke in the wheel. Politicians will say it is not good. I told them, "You can't eat up people's money. Whom you have promised." So they came back to their senses. 

TEHELKA: It's a game, basically. 

R.K. GUPTA: They were here for seven days. They studied everything. Then they spoke to me, "Send your son. We'll do the agreement." I said, "First decide finally. So that he goes there, again you say 'No, no, no. This much percentage.'" I said, "Whatever was decided. We're not working for free. Our percentage, party percentage, bureaucracy. Everything should be first told on the telephone. Then we'll come." 

[Pause] 

R.K. GUPTA: After we bring up your project to a level… Then we can jointly sit and assess. 

TEHELKA: Yeah. 

R.K. GUPTA: How much commission do we pay to each person? The complete equipment bill is 12 to 15 per cent. But 50 per cent they take back. 

TEHELKA: Okay. 

R.K. GUPTA: With Russians that is the practice. They take back 50 per cent. 

TEHELKA: Take back? 

R.K. GUPTA: They have Swiss accounts or other accounts, wherever…they channelise and all. 

TEHELKA: The Russian accounts, everything, is in dollars or Indian currency? 

R.K. GUPTA: In dollars. 

50

[Pause] 

R.K. GUPTA: For our expenses, they were opening LCs for us. 

TEHELKA: Okay. 

R.K. GUPTA: They will import something from here to their country at a little higher price so that our margin is…

* * *

Of course, R. K. Gupta wasn't the only middleman in the Sukhoi aircraft

deal. A mysterious gentleman by the name of Sudeep Chaudhary was

the main broker in the Rs. 36,000 crore fighter aircraft deal. More of 

him later. Our next stop will be Mohinder Singh Sahni, Consul General

of Belize and resident of Vasant Vihar. Pant takes us to him. 

In the beginning Pant talks about the deals Sahni has done.

PANT: …six crores that was…924 crore. That was the biggest deal he made. 

TEHELKA: 924 crore that was the Czechoslovakian deal. 

PANT: Czechoslovakian deal. Skoda. 

MOHINDER PAL SAHNI: Pipeline and other things. 

TEHELKA: Pipeline…it is a defence deal? 

PANT: No, pipeline. Petroleum and Natural Gas and all…

TEHELKA: That is what that Oman, that Oman, that pipeline of…

PANT: Gandhidham, he used to go. GAIL, Gas Authority Of India. He used to go to Gandhidham, Gujarat, Jaipur and all those places. 

TEHELKA: He is going to be, paid for also in that dealing. 

PANT: 924, 26 crore only was there. 

TEHELKA: This man was the mediator? 

PANT: Haan, he is the man basically, who got it done. 

TEHELKA: Okay. 

PANT: That's how he got the money for his farmhouses and all this everything. Twenty crore was paid. 

TEHELKA: Twenty-four crore.

51

* * *

In a subsequent meeting with Sahni when West End was lobbying with

him to become their middleman, he sets up an internal evaluation

meeting of West End's products, comparing them with the specifications

of their competitors. Sahni himself has more than a dozen top 

ranked army officers on his consultancy rolls.

LT.COL. BERRY: Whatever he is saying is right that way and things are workable. 

MOHINDER PAL SAHNI: If we put a political pressure…

LT.COL. BERRY: Exactly, exactly. We'll talk about these things tomorrow. First you talk. 

MOHINDER PAL SAHNI: That talks will be done, that is our internal matter. Your technical advice is that this product can beat others.

LT.COL. BERRY: Can fit into…

KALIA: …and get into the next lot. 

LT.COL. BERRY: Next lot. 

KALIA: Do not interfere with what has happened so far. Talk about the next lot. You should come into that, whatever evaluation…new piece…

MOHINDER PAL SAHNI: So we will put pressure for it. If it doesn't become final.Behan chod, so we will put pressure on him this way if it is not…we will get the orders. When the next one will come, then the inquiry will start on it. 

MOHINDER PAL SAHNI: And do you have any idea whether the government will take out a fraud one or not. 

KALIA: I'll tell you. 

MOHINDER PAL SAHNI: Okay. 

KALIA: He is basically himself involved in it. 

MOHINDER PAL SAHNI: Hmm? Who? 

LT.COL. BERRY: Technical…technical I can tell you…

MOHINDER PAL SAHNI: Rest, whichever government is there that will take it out, that I will find out myself. 

LT.COL. BERRY: All right. Okay. If that's the way you want to do, it's okay. 

52

MOHINDER PAL SAHNI: No, no, I will tell him. But the question is in this he has no role. You try to understand this matter. 

LT.COL. BERRY: All right. Okay. 

MOHINDER PAL SAHNI: His role will come when he will handle this particular file. At this point of time, I wanted your advice…

LT.COL. BERRY: That technically…

MOHINDER PAL SAHNI: That this product is better than the competitors. You say "yes"… 

LT.COL. BERRY: Technically it is workable. 

MOHINDER PAL SAHNI: You are not understanding what I'm trying to say. Workable means it is at par. What they are claiming that minus 40 degree, whether it is…

LT.COL. BERRY: No, minus 40 is more than par but it is got to be put by them that it should be…this is what we want. 

KALIA: How many pieces do they require which will work under minus 40? 

LT.COL. BERRY: Yes, yes. 

MOHINDER PAL SAHNI: Listen to me, isn't it Sukhwinder's subject? 

LT.COL. BERRY: No, no. 

MOHINDER PAL SAHNI: Once he came to me with some specific issues of his product. Do you remember that at that time you said it was his subject? 

LT.COL. BERRY: No…technical… If I can…he'll also understand…no problem. 

MOHINDER PAL SAHNI: No, why I am saying…

LT.COL. BERRY: Technically…

MOHINDER PAL SAHNI: …Probably it is not Signal's demand. 

LT.COL. BERRY: No, this is not Signals. This is not Signals. 

MOHINDER PAL SAHNI: This is not Signal? 

LT.COL. BERRY: No, no. 

MOHINDER PAL SAHNI: So we…

LT.COL. BERRY: Bombay. It is…

MOHINDER PAL SAHNI: It is infantry…do they require? 

TEHELKA: This is the infantry. They are the users. 

MOHINDER PAL SAHNI: Shankar Prasad? 

53

TEHELKA: Shankar Prasad. 

MOHINDER PAL SAHNI: So, then if he can…

KALIA: But Signal…person is included in the committee. That is all. 

MOHINDER PAL SAHNI: No, but demand generates from…

LT.COL. BERRY: The infantry. 

KALIA: Infantry. 

MOHINDER PAL SAHNI: That's the main thing. So now we have direct access to Shankar Prasad. So then we…I can get you this kind of personal attention where he can push…

TEHELKA: Already Mr. Pant talked to Shankar Prasad this matter. He agreed…this is good thing. He agreed. 

MOHINDER PAL SAHNI: Mr. Pant…you should get it from very high level. You should understand…

* * *

In another meeting Sahni talks about 

approaching BJP President Bangaru Laxman.

MOHINDER PAL SAHNI: I will put you to Mr. Randhawa, who is my technical operator. Then he can advise us how to go about. You are agreeing? 

TEHELKA: I agree. 

MOHINDER PAL SAHNI: Then we can. We'll find a way. Once we play the game, we'll find some route. Sir, Bangaru's line also is excellent, hain? 

PANT: You go side by side. Both. 

MOHINDER PAL SAHNI: Bangaru's…trouble with him is…

TEHELKA: Hmm. 

MOHINDER PAL SAHNI: We have to pay money straight away. 

TEHELKA: We can pay the money. No problem. 

MOHINDER PAL SAHNI: Okay. 

TEHELKA: Tell me how much? 

MOHINDER PAL SAHNI: No, I will tell you. I can't say like this. 

TEHELKA: Without money this won't be work out. Very frankly. 

MOHINDER PAL SAHNI: The main thing is that, you have to give me the comparison of El-Op…

54

TEHELKA: Price-wise? Price list? 

MOHINDER PAL SAHNI: No. Price is not the issue. The issue is the technical comparison. If we have to beat our enemy, we should know what we are doing. 

TEHELKA: Hmm. 

PANT: Technical comparison. El-Op and CSF. 

MOHINDER PAL SAHNI: And if your product is better…

TEHELKA: Hmm. 

MOHINDER PAL SAHNI: …you will enter into the game. 

[Pause] 

PANT: I'll get it from Tewari. 

TEHELKA: Yeah, yeah. 

MOHINDER PAL SAHNI: You've…your product is better? 

TEHELKA: More and more better. 

MOHINDER PAL SAHNI: Then I'm sure we can enter. 

[Pause] 

MOHINDER PAL SAHNI: If PCO is broken…

PANT: Hmm. 

MOHINDER PAL SAHNI: Then we'll have very big business. 

PANT: Hmm. 

MOHINDER PAL SAHNI: We want to beat them. 

[Someone knocks on the door and Sahni talks to him] 

TEHELKA: Then can you…can you…sir, we can work out Bangaru line also. 

MOHINDER PAL SAHNI: I can. Hundred per cent. Not even ninety-nine. Let's not talk blah-blah. We should work…if tomorrow we fail even in the technical end…

TEHELKA: Hmm. 

MOHINDER PAL SAHNI: …there is no use talking to Bangaru. 

TEHELKA: Yeah. Okay. 

MOHINDER PAL SAHNI: I have to make a full case, draft a letter, make a note…why you should be taken. 

55

TEHELKA: Okay, hmm. 

MOHINDER PAL SAHNI: If he speaks…

TEHELKA: Hmm. 

MOHINDER PAL SAHNI: ...and he coins 

TEHELKA: Hmm

MOHINDER PAL SAHNI: …that tomorrow the note comes from the ministry. 

TEHELKA: Hmm

MOHINDER PAL SAHNI: …that "Nothing doing, these products are better," you are out. 

TEHELKA: Okay. 

MOHINDER PAL SAHNI: Let me first say why you…I should be entertained. 

TEHELKA: Hmm. 

MOHINDER PAL SAHNI: Then Bangaru line is hundred per cent. 

TEHELKA: Okay. 

MOHINDER PAL SAHNI: I have to prepare a note. On the paper I should be Napolean. 

TEHELKA: Okay, okay.

* * *

Meanwhile, Colonel Berry is showing some entrepreneural spirit. He brings 

Major S.J. Singh (Retired) to meet West End in a five-star hotel hoping to take away a client from Mohinder Singh Sahni. Major Singh is a smooth customer.

He was involved with Bofors in the beginning in its deals in India around the 

time that the company acquired its notorious reputation. Major Singh makes

a very interesting arms dealer. He starts off very colourfully. He has no 

qualms about calling himself a 'fixer'. In the beginning he states how he 

got a laser-guided bomb, which failed 5 tests out of 6, cleared.

TEHELKA: Sir, I met you that day. 

MAJOR S.J. SINGH: Yes, we hardly spoke to each other. I was only listening and not speaking out. 

56

TEHELKA: Okay, okay. Sir, where are you staying in Delhi? 

MAJ. S.J. SINGH: I stay in Gurgaon. DLF. 

LT. COL. BERRY: He'll be able to handle the whole thing. You have the choices. You can ask him whatever you want to ask for that. 

TEHELKA: Sir, recently you've done any big deal. 

MAJ. S.J. SINGH: I keep doing for others. I am, basically, you can call me a fixer. I will use a very crude word but that is what it is. Okay? Like when you are in trouble you come to me and I sort you out…your problem. When he is in trouble, he comes to me and then I have my friends at different levels. I have friends in the ministry, the bureaucracy, I have friends in the ministry, the politics side. I have my friends in the defence services whether it is army, navy, air force. And then I have friends at the junior level which give you information. So that's how things work…the last work where we met last time I did for him.

TEHELKA: For Mr. Sahni.

MAJ. S.J. SINGH: Yeah, there was a deal of Krasnopol. That was 150 crore deal I…. It was organised by me. I got everything sorted out. It was fixed up

TEHELKA: In the Defence?

MAJ. S.J. SINGH: In the defence. I am talking in the defence. It was a Russian missile. Bomb. This is laser-guided bomb. It was not being cleared and…

TEHELKA: Due to what?

MAJ. S.J. SINGH: Various reasons. Firstly, out of six tests, it was only one test which was successful. Five test failures. Then the bureaucracy was not at all in favour of it. They were totally against it inspite of pressure from some angles. So these were the various reasons and there were options available to them from French people, from Germany, but, ultimately, we were able to push it through as for the Russian…and now it is a repeat order.

TEHELKA: This is called smart ammunition something?

MAJ. S.J. SINGH: Yeah.

TEHELKA: Same thing.

MAJ. S.J. SINGH: Krasnopol is the name of the bomb.

TEHELKA: The bomb will go around 14 lakhs.

MAJ. S.J. SINGH: The total deal was of 5,000. It was 150 crores. Now the fresh order will be again. There are lot of problems, but again because of my friend…because this is being used by the artillery.

TEHELKA: This will be used for the Bofors.

MAJ. S.J. SINGH: Various guns…so it depends on the charge now…Another bomb which is being propagated.

TEHELKA: Same American company?

57

MAJ. S.J. SINGH: No, no, one is Krasnopol…is Russian. The other is from South Africa. Now the South Africans are pushing it through their agent. So my job is not only to block that, but to see that the repeat order is given. Now we are waiting for the terms to be cleared as to whether if I do this job how much will you give me. If that understanding takes place we will clear this project. If it doesn't take place, someone else will take it. It is as simple as that…mathematics is very simple.

* * *

Major Singh also gives an example of how he's manipulating the Price Negotiation Committee in a deal worth Rs. 480 crore. Each one of the 6-7 committee members will get about 0.25 % each.

TEHELKA: You know, you give me example…some example, then only I can work out.

MAJ. S.J. SINGH: See, there are two things, which we should be very clear. One thing is that one needs to be honest and to be honest, it's not only good to be honest but it must also show to be honest…I've explained it, that is the purpose. No one can go to the court of law on the issue.

TEHELKA: Exactly, that is true.

MAJ. S.J. SINGH: Right, so it's only a reminder that this was the understanding between you and me…who's got the time and who's got the patience? Supposing it is a more of trust on which these deals are done. Something is going on now at the moment, the deal is…480 crores deal…the PNC is going on.

MAJ. S.J. SINGH: Right? They asked to drop down from 50 per cent…from the quoted price they offered to 10 per cent. Then they came to 20 per cent. They came down to 35 per cent. Now the gap is 20 to 35. Fifteen per cent gap now. The party approached, they approached minister, approached everyone, nothing happened because minister also knows that he cannot put his neck in a situation where he will be caught. And he is not the person who will ever put his neck. He is very clever.

TEHELKA: George Fernandes? Okay.

MAJ. S.J. SINGH: So he will never put, he knows his survival…he is a 4-man party. He knows where he can survive. So the answer was…so this party came they started offering me half per cent. So I said, "Are you joking with me?" Then they said, "One per cent." I said, "Still you are joking." I said, "Five per cent." So from 5 per cent they came to 3 per cent. So now it will be between 3, three-and-a-half per cent and our job is from 35 to bring it to 28. So 7 per cent we are saving you.

LT. COL. BERRY: They are getting extra margin there.

MAJ. S.J. SINGH: Out of that, I am only sharing half with you. Fifty per cent, fair or unfair.

LT. COL. BERRY: See, because it will reach that stage.

MAJ. S.J. SINGH: Fair or unfair.

TEHELKA: Fair, fair.

MAJ. S.J. SINGH: Okay, so we say give me a proof that you will give me this three-and-a-half per cent, and that proof can be given by the bank guarantee.

MAJ. S.J. SINGH: So now supposing they agree to three-and-a-half per cent, my gain out of that is half per cent. Three per cent will go to people.

TEHELKA: Those who are associated with you.

58

MAJ. S.J. SINGH: No, no, the chap who is doing the job.

LT. COL. BERRY: Who will give the guarantee of the additional samples.

TEHELKA: Okay, okay.

MAJ. S.J. SINGH: Who is the one who has to accept it, because he is the chairman of the PNC. Then in the PNC there is a financial controller - FACA -…that fellow has to be taken into account. Then there are other people.

LT. COL. BERRY: There are a total of about 6-7 people there.

MAJ. S.J. SINGH: They have to be taken care of. Everyone gets his about 0.25, half per cent. It comes to half per cent. I get half per cent and I am happy with that.

* * *

Major Singh also makes a reference to Sudeep Choudhary, the middleman in 

the Sukhoi fighter aircraft deal, and calls Choudhary a nincompoop. Later, Colonel Berry, while pitching his services to the 'President' of West End,

gives some more details about the kind of deals Major Singh has

done. He also lists out some of Singh's contacts.

TEHELKA: So what are the deals which Mr. Sahni is doing? Is he a more intelligent choice than Mr. Singh would be?

LT.COL. BERRY: I'll tell you, I'll tell you now. Let him [referring to waiter who is in the hotel room] just go, I'll tell you the complete story.

[Pause as waiter makes tea. Berry asks Tehelka whether he can get S. J. Singh to come directly to the room. Tehelka agrees. Berry calls S. J. Singh on his mobile.]

LT.COL. BERRY: So I was saying ki as far as…

TEHELKA: Who's the better choice?

LT.COL. BERRY: Better choice would be S.J. Singh. I will put it any day. Because S.J. Singh is a sub-agent of Sahni.

TEHELKA: Sub-agent to…?

LT.COL. BERRY: Sub-agent or partner to Sahni.

TEHELKA: Sahni?

LT.COL. BERRY: Haan. So main person is S.J. Singh. It is just Sahni the name. That is why he is ready to sign for six per cent. Otherwise you will have to give 10 to 12 per cent there.

TEHELKA: Okay.

59

LT.COL. BERRY: So…and then this is the trick of the trade, that one must get into…and for every political adjustments one must…one has to be very, very sure…

TEHELKA: So what are his contacts like? What kind of deals he has done?

LT.COL. BERRY: (showing tehelka another sheaf of papers): I…I'll tell you. These are the type of…where he has been directly involved and directly helped. And Krasnopol ammunition for artillery…150 crores.

TEHELKA: Krasnopol ammunition?

LT.COL. BERRY: Haan, yeah. It's a Russian company.

TEHELKA: Which year was this? 

LT.COL. BERRY: Although Sahni is supposed to be the main this thing, but actually…because I have been dealing with Sahni for a long time…almost 10 years or so…

TEHELKA: He did it? Which year was this?

LT.COL. BERRY: Just…I think about six months back or seven months back.

TEHELKA: Six months back?

LT.COL. BERRY: Something like that.

TEHELKA: Hundred and fifty crores?

LT.COL. BERRY: Yeah.

TEHELKA: What was the commission then?

LT.COL. BERRY: Again…this I am not very sure as to how much amount of commission…

TEHELKA: We will ask him.

LT.COL. BERRY: This S.J. Singh will be…to tell you better.

TEHELKA: What else?

LT.COL. BERRY: Cornet for 250 crores, which was done directly by him when he was not a partner to Sahni.

TEHELKA: Okay.

LT.COL. BERRY: As a matter of fact even Vipin Khanna was looking for him to become a partner. Because he can sign the things and [makes a gesture]…so…

TEHELKA: Okay.

LT.COL. BERRY: And this is another company which is…. The shoulder-fired anti-tank this thing Carl Gustav for 85 crores.

TEHELKA: Carl Gustav?

60

LT.COL. BERRY: Yeah. From Sweden.

TEHELKA: When was this?

LT.COL. BERRY: That was long back. Because he has been in this line for quite some time. From here, there…you know. And then Quartain of Australia. This was a small one. Five million radio sets were there. That he did. Then SG…SGT Sweden. NSG rifles for 15 crores. So basically, you know, 10, 15, 85, 100 and…

TEHELKA (interrupts): NSG was sniper rifles?

LT.COL. BERRY: Yeah.

* * *

Major Singh emphasises the importance of the trial evaluation report 

of the ultimate product. Says he, "If the end user says it is unfit

for the Army's use, who are you to say that you are good?"

MAJ. S.J. SINGH: Because as I…to start with I mentioned to you the grassroots level, you have to take care. Then you have to take care of middle levels. For example, this item of yours…it is…the trials are carried out at different levels. Now the most important agency in this becomes the trial report.

TEHELKA: Okay.

MAJ. S.J. SINGH: That is there…. Of course, many other factors are there. But the most important technical factor is your trial report. Now if you do not take care at the trial level, whatever connections you may have, you'll never go through.

TEHELKA: Okay.

MAJ. S.J. SINGH: I guarantee that.

TEHELKA: Which is basically, they say that you are sub-standard, then you're sub-standard.

MAJ. S.J. SINGH: Not sub-standard. If the end user says it is unfit for our use, who are you to say that you are good?

TEHELKA: Okay.

MAJ. S.J. SINGH: I am the end user. And if I have to trial, then I have to say and certify that okay this meets my QR or it meets my requirement. Only then it is worth going further. Further negotiations will only take place once the basics are cleared.

TEHELKA: Okay.

MAJ. S.J. SINGH: So that is one stage which is a very, very important stage. And that is from where short-listing takes place. Because there will be more than one item or offer to be tested. And now, on a small thing, he can say very clearly, "Yes, fine. Everything is good, good, good. But this is not so-and-so like so-and-so." That's it. You are out. So that so-and-so is now the qualifying mark.

TEHELKA: Has it happened to you before?

61

MAJ. S.J. SINGH: Why not? So that's why we are very cautious about…. When we handle the subject, we handle it at the appropriate level. To start with, associate them right from the beginning…word 'go'. So the…the meter, as I say, is down from the moment the word 'go'.

TEHELKA: Okay.

* * *

Needless to say, all this has a deeper significance. For in the lobby of 

the five-star hotel we are in, Major Singh has Major General Satnam

Singh (GOC), infantry chief of the Drass-Kargil sector in Jammu &

Kashmir, based in Nimu, waiting for us. The General is on leave and an

old friend of Major Singh. Under infantry chief Major General Shankar 

Prasad, he will be responsible for the trials of the HHTs. The infantry 

was already conducting trials for Thomson-CSF and El-Op. Major Singh,

indeed, was all for involving the top brass from the very beginning.

TEHELKA [to Satnam Singh]: How long will the evaluation trials take, like…the Thomson and the El-Op?

MAJ. GEN. SATNAM SINGH: See, we can't be very specific about it. It is based on the type of equipment we have…you know, like, if you are dealing with these Image Intensifiers, they take much shorter time, than probably a weapon system will take. Because, you know, it depends upon what are you trying to see.

* * *

TEHELKA: But…it's everything is eventually returned, obviously.

MAJ. GEN. SATNAM SINGH: Yes, obviously.

TEHELKA: Yes.

MAJ. GEN. SATNAM SINGH: All the equipment…it's all in the understanding. All the equipment that comes for trial is basically of the firm. If they give it to us, then it all goes back.

TEHELKA: Yeah, at no-cost and…

MAJ. GEN. SATNAM SINGH: So, you carry on trials, see your performances that have been identified by the company. See what we need. We either say 'yes', or we say 'no'. Or we give, ki all right, if you can…if the company can give us what we need. Because some people have the capability to modify the equipment and things.

TEHELKA: Yeah.

[Pause]

62

TEHELKA: What is the kind of…biggest problem you are facing with them…if at all? Weight?

MAJ. GEN. SATNAM SINGH: Problems, in what way?

TEHELKA: Weight? Bulk performance…?

MAJ. GEN. SATNAM SINGH: With what?

TEHELKA: The hand-held….

MAJ. GEN. SATNAM SINGH: The imager?

TEHELKA: Yeah.

MAJ. GEN. SATNAM SINGH: No, it's the quality of image that counts. And, also the other criteria is the portability. You see, if it is going to be a hand-held Image Intensifier, it should be something that doesn't add too much of weight.

TEHELKA: Yeah, yeah. Obviously, obviously. That's where we score. Yeah.

TEHELKA [interrupting]: Are you happy with the evaluation of the other equipment that has come up so far? Thomson and El-Op?

MAJ. GEN. SATNAM SINGH: It's…it's…it's not been fully accepted as such. It has still to come to my area for trials.

TEHELKA: Okay. And this one, El-Op?

MAJ. GEN. SATNAM SINGH: El-Op has also not come to me. They're still at the lower levels. Trials are going on.

TEHELKA: Lower levels meaning?

MAJ. GEN. SATNAM SINGH: Means the plains…

LT. COL. BERRY: Terrain-wise…terrains.

MAJ. GEN. SATNAM SINGH: But they still have to move up to my area.

TEHELKA: Okay.

MAJ. GEN. SATNAM SINGH: To the high altitude trials. So we haven't really filed them off. So I can't give you an opinion on that at all.

TEHELKA: Okay.

MAJ. GEN. SATNAM SINGH: But yes, we have feedbacks of the trials of the desert region. There are some problems there in that portion.

TEHELKA: Okay.

* * *

63

The West End President Alvin D'Souza lets his imagination loose, highlighting thereby how incredibly casual and callous critical defence purchases have become. He talks about how they could introduce an audio factor in the HHTs.

TEHELKA: What we can do in ours, which is very rare, is that we can put in movement locators. So immediately there's human movement, there will be a beep that goes off.

MAJ. GEN. SATNAM SINGH: Yeah, it's something like the Battlefield Service Radars.

TEHELKA: Yeah.

MAJ. GEN. SATNAM SINGH: It gives you sound…

TEHELKA: Exactly.

MAJ. GEN. SATNAM SINGH: If there's something…

TEHELKA: Yeah, you're alerted immediately, so…

LT.COL. BERRY: An alert sound comes…?

TEHELKA: Yeah. There's a beep.

* * *

Of course, it would be interesting if one asked General 

Satnam Singh directly about the evaluation procedure.

TEHELKA: So you've been involved in the evaluation procedure earlier?

MAJ. GEN. SATNAM SINGH: Yeah, yeah.

TEHELKA: Of various products?

LT.COL BERRY [answering for Satnam Singh]: A number of times...

TEHELKA: Basically you are in the field job?

MAJ. GEN. SATNAM SINGH: Yes, I am in the operational job. 

TEHELKA: Operation. Which is in infantry…hardcore infantry…?

MAJ. GEN. SATNAM SINGH: Yes, basically from the infantry. But then you know, we keep on changing our roles. Today I'm operational commander, tomorrow I may be on staff.

TEHELKA: Okay.

64

* * *

A little time after the meeting Colonel Berry explains the 

significance of the meeting with General Satnam Singh.

Berry was there the whole time alongwith Major Singh.

LT.COL. BERRY: If you shake hand, it is shaken forever. Otherwise, people will say "sorry". Like he told you that first thing is for them resolution. He has given you a feeler already that "Look, if your resolution is okay, you are okay." Absolutely. Because on resolution, he cannot force…cannot compromise.

TEHELKA: Okay.

* * *

Elsewhere, the brew is simmering. After hearing a lot of talk about R.K. Jain, treasurer of the Samata Party, being the briefcase man of George Fernandes, we at West End decided that a direct approach was called for. The series of meetings with R.K. Jain proved to be a goldmine of information about past and present defence deals. It incriminates beyond redemption Defence Minister George Fernandes and the Samata Party. Jain was conned by emphasizing  the size of West End as a group, the contributions it would make to the Samata Party fund and to Jain's own coffers. An introduction to Jain.

R.K. JAIN: I am the national treasurer, I have given you the card. The treasurer is close to the boss because for money matters he has to talk to the treasurer only. Even if he talks to 10 others, he has to talk to the treasurer.

TEHELKA: Bilkul, naturally.

R.K. JAIN: Please consider that it is not hidden from the treasurer that the party is getting money. Money is withdrawn when I pass the cheque, when I sign it. And why should I lie? I would take money only in lieu of work done for you.

* * *

Jain explains what his role will be for West End. He also goes on to narrate the details of one of the first defence deals that he did for Samata party, when the party had no money and had just come to power. Suresh Nanda of the  Crown Corporation paid them Rs. 1 crore for help in getting the order of  250 Armoured Recovery Vehicles for a Slovakian company.

R.K. JAIN: Armoured recovery vehicle was my first case which I did it for Slovakia.

TEHELKA: Okay.

R.K. JAIN: When George was Defence Minister for the first time[ gestures] . After one year, then he became another Defence Minister.

TEHELKA: Yeah, yeah.

R.K. JAIN: This is I am talking about the first time when he became the defence minister. As soon as he became the defence minister, after six or seven months…

TEHELKA: Okay.

65

R.K. JAIN: Suresh Nanda approached me for armoured recovery vehicle. He was the agent for the Slovakian company.

TEHELKA: What was the product?

R.K. JAIN: Armoured recovery vehicle.

TEHELKA: Oh! Yeah, yeah.

R.K. JAIN: There were 250 vehicles were there. The tender was worth say 250 crores.

TEHELKA: Okay.

R.K. JAIN: There were two…three, competitions - Slovakia, Czechoslovakia and there was a company from Poland.

TEHELKA: Okay.

R.K. JAIN: Boomer.

TEHELKA: Yeah, yeah, that jet plane and everything.

R.K. JAIN: Nanda approached me. Czechoslovakia's price was the lowest, second Slovakian, third was the Poland.

TEHELKA: Haan, Haan.

R.K. JAIN: He said, "I will give you one crore rupees in advance…"

TEHELKA: Okay.

R.K. JAIN: "You get disapproved the last one…Czechoslovakia because they are so lower that we cannot match their price."

TEHELKA: Okay.

R.K. JAIN: "If you can push him out. Delegation is going on to the…delegation has been ordered to go to Czechoslovakia. Stop this delegation, and technically reject this company. Here are the documents."

TEHELKA: Hmm.

R.K. JAIN: "By which it's proved that this company is closed for the last two years. They will start only after getting this order."

TEHELKA: Yeah, yeah.

R.K. JAIN: "I will give one crore rupees. And I will give you…if they are technically disapproved, then you are my agent."

TEHELKA: Yeah.

R.K. JAIN: "For this particular…perks…and I will give you so much of commission."

TEHELKA: Okay.

66

R.K. JAIN: I said, "Fine." He gave me the correspondence. I took the correspondence to George.

TEHELKA: Hmm.

R.K. JAIN: And he said, "All right, I'll reject it." He is a very intelligent man. Next day he called Rajiv Goba.

TEHELKA: Hmm.

R.K. JAIN: He said, "Ring up to this Indian Embassy in Czechoslovakia and find out whether this company is closed for the last two years or not."

TEHELKA: Hmm.

R.K. JAIN: And he rang up. It was closed.

TEHELKA: Hmm.

R.K. JAIN: He told me, "…said the company is closed for the last two years. There is no point of a delegation to go. And therefore this company is technically disqualified."

[Jain's phone is ringing.]

TEHELKA: Okay, it is manipulated.

R.K. JAIN: He wrote straight away on the file himself. He never goes and orders to a Joint Secretary. He wrote it himself, and sent the file back. Nanda gave me one crore rupees. He called me, "Yes, Mr. Jain, the file has come down. Like you know George…"

TEHELKA: Yeah, yeah.

R.K. JAIN: "The file is down, my work has been done, I am very happy. You take your one crore rupees." I said, "Fine, give it to me."

TEHELKA: Yeah, this kind of work.

R.K. JAIN: After that…

TEHELKA: Yeah.

R.K. JAIN: After that, the bugger could not get lowest into the PNC. Poland become the lowest.

TEHELKA: Okay.

R.K. JAIN: Then he started running around. "Mr. Jain…" I was very angry, "You bastard." And on the instruction of George Fernandes, Rajiv Goba attended that PNC to see that what is happening in the case.

TEHELKA: Hmm.

R.K. JAIN: Party was wanting money. We just came into the power, we had no money.

* * *

67

The story behind Jain vaulting himself into the treasurer's post of the Samata Party is too interesting to be left out.

TEHELKA: Basically, traditionally you are a businessman?

R.K. JAIN: Yes, just entered into the politics two years back. Not merely entered, but George Fernandes selected me. He called me and said, "You become my treasurer." I used to go to ministers as a industrialist goes at times. One of my friend came and said, "Look, I am going to George Fernandes." I said, "He is a very good man. I want to see him, I have never seen him." I went to him the first day. The next day I got a phone call in the night at 7.30. "Mr Jain, can you come and see me right now?" I said, "Yes." Actually, in the first meeting he said, "Mr. Jain, I want two-and-a-half lakh rupees." When I went without appointment…when I went with my friend, "I needed money. Can you arrange 2.5 lakh?" I said, "What are you talking? You are such a big man. You are asking for 2.5 lakh rupees? I can't give you. You should have asked for 10 lakh, 20 lakh. What is 2.5 lakh?" Then he says, "No, no, no. I am need 2.5 lakh. Can you give it to me?" I said, "Yeah, I'll give it. Give me two-three days' time." Next day again he phoned to me. I thought he'll ask for more. He had agreed for 2.5, now will he ask for more? He said, "Mr. Jain, I want to make you my national treasurer." That is how I became the treasurer.

Later, Jain explains to the President of West End how he lobbied with Defence Minister George Fernandes to get the Air Jet Trainer project for Samata Party.

R.K. JAIN: You know I worked for your project initially here. I started with this project called Air Jet Trainers.

TEHELKA: Okay.

R.K. JAIN: Air jet trainers. And basically, you know there are three major manufacturers. Americans are also there, but since it is banned from America, so they were not competing. The British Hawk, Alpha Jet from France and MAPO-MiG from Russia.

TEHELKA: Yeah.

R.K. JAIN: So the…I…this MAPO people, MiG people, approached me. I went to the boss. I said, "Look, sir, this is something…."

TEHELKA: Mr. Fernandes?

R.K. JAIN: Haan. "…This is a very big job, worth of 4,000 crores, 3,600, to be precise…."

TEHELKA: Okay.

R.K. JAIN (continuing): "And…if you bless me, then I'll take the agency from them and do it." He said, "Look, give me a time. Give me some time. Let me check." So he checked up. He came back to me after two-three days. He said, "Mr Jain, I have checked up, and I feel that they are going to stand the lowest…."

TEHELKA:…Chance of….

R.K. JAIN: They are already lowest.

TEHELKA: In terms of price?

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R.K. JAIN: In terms of price.

TEHELKA: Okay.

R.K. JAIN: There is a good chance that the order will go to them. Catch hold of them.

TEHELKA: This is the MAPO-MiGs?

R.K. JAIN: MAPO-MiGs. "You can tie-up with them."

TEHELKA: Yeah.

R.K. JAIN: Then I went to the boss again. I spoke to the MAPO people, MiG people. I said, "Look, well, I can do it."He said, "All right, but you have to get us introduced to George Fernandes. In the sense fix up an appointment. Official appointment. And we will go and see. If you are able to do it, then you will be our representative in this particular deal in India."

TEHELKA: Yeah.

R.K. JAIN: I went to the boss again. I said, "Look, this is the problem." He said, "But they should trust you. You are a treasurer. What is the point of exposing me? Why do you want to expose me?" I said, "I am not exposing you because I am not asking for unofficial appointment. I am asking for a official appointment." He said, "All right". I said, "This is not such a big deal, why they should believe you?"

TEHELKA: Hmm.

R.K. JAIN: He said, "All right, but you can send…."

TEHELKA: When was this? Last year?

R.K. JAIN: Last to…this is…one-and-a-half year's time.

TEHELKA: Yeah, yeah.

R.K. JAIN: Then I…told…spoke to MiG people. He said, "All right, Mr. Jain, after meeting, we'll give you the agency agreement." Then we talked about. I said, "Look, I want 10 per cent commission." The chairman said, "No, Mr. Jain, we can't give you more than seven per cent. Because seven per cent is…. This is a big project of 3,600 crores. Though commission will be higher, but some part of the commission will go to…I mean…wherever it goes. It's none of your headache".

TEHELKA: Yeah, yeah.

R.K. JAIN (continuing): "…But you are going to get seven per cent…." 

TEHELKA: Yeah, yeah.

R.K. JAIN: And then I said, "No, I can't do it for less than 10 per cent whether the deal is small or big because in this particular deal the PM is also going to be involved at one stage. It needs a Cabinet-approval. So…my party will expect at least three per cent. PM house will expect at least three per cent. And how do I survive in seven per cent? Then there are bureaucrats, myself, and everybody is there. If you narrow it down, you say two per cent, two per cent…. In India you can't negotiate with ministers. Which means…. Normally, they try and keep three per cent and upto two per cent depending upon size…." And they said, "All right…you…." He went and met George Fernandes. And George Fernandes was laughing to me next day. He said, "The bugger was nervous, he was sweating. The chairman of MiG was sweating." He said, "Then I realised that he is not at ease. So I had to start discussions, I had to, you know, talk to him for 15 to 20 minutes." He

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was very happy. He came back and he said, "Look, yes, it's all right. Look, you come to Russia, we will sign the agreement." So I flew to Russia. Though I am not allowed to flew without the permission of George.

TEHELKA: Okay.

R.K. JAIN: But I went to Jaya Jaitly. I said, "Madam, they are calling me to Moscow." She said, "No, no, Mr. Jain, it's not safe. You don't fly because you see, you are our treasurer. People are keeping an eye on you." I said, "Look, they have called…unless we sign an agreement tomorrow, I do the job for them…and they turn out…they don't pay me, then where do I go? Party will say 'where's our commission?' What do I do?" [gestures] She said, "All right, go, go." So I went there. The chairman and all seven-eight people of that MiG company…all chiefs and some managers…came and attended the meeting. Then he said, "Mr. Jain, I did a mistake there. You see, we cannot sign an agreement today on the air jet trainers. But we have small, small few jobs like upgradation of MiGs. Why don't you take these small jobs first, and in the process we'll make an agreement with the bigger one." I…I was in a… you know, my mood got spoilt because I took the permission from the boss, I flew down to Moscow to sign an agreement…."

TEHELKA: The problem was from the MiG guys?

R.K. JAIN: Yeah, the MiG…. They're not wanting to sign the agreement at that time. They said you start with the smaller projects and bigger projects…

TEHELKA: Why was that?

R.K. JAIN: Because they were not confident of providing all the papers and licences, which are needed to approve them technically.

TEHELKA: Okay.

R.K. JAIN: There was some problem then with the flying hours.

TEHELKA: Okay.

R.K. JAIN: So the air-sea worthiness certificates was not, you know, was not there.

* * *

Of course, Jain was facing strong competition from Sudeep Chaudhary,  one of the mysterious Sukhoi fighter aircraft middlemen, to represent  MAPO-MiG. Chaudhary had worked himself into the enviable position  of representing two competitor companies - British Hawk and MAPO-MiG. In fact, Jain first met Chaudhary at the MiG chairman's office and so broke were MiG that it was Chaudhary who picked up the expense of  bringing down the planes to India for a demonstration at Bangalore.

TEHELKA: It's tough luck.

R.K. JAIN: So they….

TEHELKA: You didn't manage Hawk? You didn't go and talk to them? You should talk to the best people in the business.

R.K. JAIN: No. That Sudeep Chaudhary. That guy approached me. He is the man who was looking after the Hawk interest as well as the MiG.

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TEHELKA (interrupts): Explain to him…the East-West…

R.K. JAIN (continuing): They're very clear people.

TEHELKA: East…. This is the same guy who was involved in the Sukhoi deal?

R R.K. JAIN: Yeah, Sukhoi deal.

TEHELKA: Exactly. You know everything… [laughs].

R.K. JAIN: Sudeep Chaudhary.

TEHELKA: Yeah.

R.K. JAIN: Because, there you see, he is representative of the Sukhoi.

TEHELKA: Is he a businessman?

R.K. JAIN: Yeah, businessman.

TEHELKA: Okay.

R.K. JAIN: So he was representing both the companies. MiG as well as the Hawk.

TEHELKA: And he knew?

R.K. JAIN: Yeah. Because I met him first time in front of the Pushkin, the chairman of MiG.

TEHELKA: Okay.

R.K. JAIN: He was sitting in his room. He spent total money of bringing all the MiGs and air jet trainers from Moscow to India. The complete money, which was around more than one crore rupees, was spent by Chaudhary because Russians had no money.

TEHELKA: To bring what? The papers and everything…

R.K. JAIN: The planes from…for demonstration…

TEHELKA: Okay, okay. You mean the fuel and the carting….

R.K. JAIN: In Bangalore.

TEHELKA: Okay. Assembling…

R.K. JAIN: He spent the total money. That's what that Pushkin told me and next day he said, "Mr. Jain, why don't we meet tomorrow?" I said, "All right, but what is your basic purpose?" "No, no, come and see me tomorrow... you…you will be benefitted." I said, "All right, I will come tomorrow." I went to Sudeep Chaudhary's house.

TEHELKA: He stays in Delhi?

R.K. JAIN: Yeah, in Delhi.

TEHELKA: Okay.

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R.K. JAIN: He says, "Mr. Jain, why you want to go with MiG? They will not get the order. Both of us, let us…let us make an understanding. Why competition? If you want, I can give you a letter where all positive points of the British Hawks are there." I said, "When you are confident this order will go to British Hawk, then why are you running after the MiG?" He said, "This is India. You never know anything can happen at what…at any time. Why should I allow any competitor to come in?"

TEHELKA: Okay.

R.K. JAIN: "It's fine. But I am sorry. I cannot shake hands with British Hawk. I was told by George Fernandes that the order will go to MiG." I refused. I said, "No, and…I don't like to run around…run after two companies in the same job. I have feeling that I must work for MiG. So, I am sorry I cannot work for British Hawk. If you have another projects where you want my help, where I am not tied up with anybody, definitely I'll help you." Then he gave me three names. One was Sagem. It's a French company. I got it the order. Sagem.

TEHELKA: Israeli company?

R.K. JAIN: Yeah, French company.

TEHELKA: For what? This is the…Sagem also…that's what he is asking.

R.K. JAIN: The other order was the upgradation of gun from 130mm to 155mm. That was from a company called Sultam from Israel.

TEHELKA: This is medium artillery?

R.K. JAIN: Yeah, artillery. Basically it comes under artillery. Medium is.... This was… I did that job also. The file was running from the Narasimha Rao government and nobody was taking a decision for buying or not to buy.

TEHELKA: And Mr. Fernandes said, "I will do it"!

R.K. JAIN: "I will do it." And he did it.

TEHELKA: It's a great way of Fernandes!

R.K. JAIN: They got this order in the month of March this year.

TEHELKA: Just give that. That is exact…. Abdul Kalam is involved. The Abdul Kalam is written a letter to Mr. George Fernandes that we can use indigenous and….

[Interruption]

TEHELKA: Who is Mr. Kalam?

R.K. JAIN: Scientific advisor to PM.

TEHELKA (continuing): Just explain that, that is…that is wrong! You can't imagine that is…what he has done!

* * *

There is another Suresh Nanda deal in which he gave an advance of Rs 1 crore to R. K. Jain for the Samata Party. This time for getting an air-to-air and  surface-to-surface missile system through the Indian Navy. In

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fact, the Israeli missile system called Barak was objected to by Abdul Kalam,  Scientific Advisor to the Indian government, as he was in favour of the indigenous varieties - Trishul and Prithvi variants. But Abdul Kalam  was overruled by George Fernandes. And this is why Fernandes did it.

R.K. JAIN: Our help at times is a very big help. Like Barak was the case. Barak, you know is a system which is set on the ships, for Naval ships. And it is air-to-air…surface-to-surface missile. The file was going on for purchase of seven Barak, plus the ammunition from a company called Rafael in Israel. Abdul Kalam…the file went twice. I told you…DRDO, the head of the research and development wing is the scientific advisor to the defence, Abdul Kalam. Nowadays Atre is there. Abdul Kalam has retired. So, he wrote on the file that, "Look, we are developing our Prithvi or Trishul. Trishul missiles. I think, according to my…according to me, the Prithvi should be…or Trishul should be set up on our naval ships. There is no point of buying this imported system Barak."

TEHELKA: That is not missile. That is a system.

R.K. JAIN: Again, I just do my job. How do I do? The scientific advisor is also on the above of George Fernandes now. He gave me one crore rupees. "You keep it with you. Whether this order is being done or not done, I don't care. But I want to give it to the party. You give it and please try and help me. Money is not a problem." I went and paid…. I told Jaya Jaitly, "Look, so much of money he has already given to me now. If you accept it, that means we have to do something for the party. If you don't accept it, well, I'll go and give it back. But only accept it when we feel that we can do something. Otherwise, he won't say anything to me, but he won't feel good. He won't feel nice." She said, "Give me time for two days." She kept the money. After two days, she says, "I've spoken to the boss. Don't worry. He said he'll make everything fine." The file was called. He wrote on the file: "Vikrant is our main ship, is the main vessel."

TEHELKA (interrupts): That's your aircraft carrier?

R.K. JAIN: Yeah. "Pakistan has the surface-to-surface missiles. And our ship is very well equipped because we have…air landing…air take-off…."

TEHELKA: Yeah.

R.K. JAIN: (continuing): "We can't leave this ship, you know, like this. So in my suggestion, in my view, at least one system should be purchased. And put on our main vessel."

TEHELKA (interrupts): That is INS Viraat also. He can give that to….

R.K. JAIN: Yeah, yes, INS Viraat.

TEHELKA: Yeah, INS Viraat.

R.K. JAIN: Yeah, not Vikrant. INS Viraat. Sorry.

TEHELKA: This is for INS Viraat.

R.K. JAIN: INS Viraat. And he told me, "Look, Mr. Jain, I'm doing it, I'm overruling the comments of the scientific advisor, so it is not good to allow seven pieces in one go. Because we have seven ships. Naval...real seven ships who are real fighters. But tell your company that they should try and push from the down level. That after one is approved, 'No, no, we can't do with one. All ships are very important. Please allow us to buy all seven.' Then I'll give them the permission to buy and purchase the rest of the six." Same thing happened after six months. The file went to the boss again because Nanda managed to, you know, from the bottom he managed to get a letter in the name of George Fernandes, that "This is very important. Without this we can't survive." So….

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TEHELKA: So Mr. Kalam took the money?

R.K. JAIN: No.

TEHELKA: Not Kalam?

R.K. JAIN: Not Kalam. Kalam, because see Kalam was overruled by George Fernandes.

TEHELKA: Okay, okay.

R.K. JAIN: So…

TEHELKA: How much was the deal worth?

R.K. JAIN: 560 crore. Eighty crore was one piece. The deal is still going on. The PNC is going on. It's not yet through. The final negotiation is going on.

TEHELKA: The percentages are decided, is it?

R.K. JAIN: Yeah. At least what my party is going to get, what I'm going to get…it's all been decided.

TEHELKA: Three per cent. Is it?

R.K. JAIN: That three per cent to the party.

TEHELKA: Okay, okay.

R.K. JAIN: But for myself also…

* * *

In an explosive revelation, R. K. Jain continues to spell out the incredible corruption and compromise of the Indian defence at the highest level. He

explains how the actual monetary transaction takes place in a defence deal,

and how much money he has made for Samata Party - so far - Rs. 50

crore, for himself a rather substantial sum of Rs. 10 crore. In the beginning,

he speculates about whether the Prime Minister forwarded some of the

Sukhoi fighter aircraft money to George Fernandes.

TEHELKA: That's right. G…G…George Fernandes had nothing to do with it? Okay?

R.K. JAIN: (nods his head): Maybe the PM must have got some money and forwarded to George Fernandes also. That I…that I…

TEHELKA: Forwarded it to you and not to him?

R.K. JAIN: Not necessarily because sometimes they have given the…

[Both laugh]

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TEHELKA: You normally use Zurich or which place?

R.K. JAIN: No, I normally…for this kind of transactions, I normally use a different man...a third man.

TEHELKA: Okay.

R.K. JAIN: See I'm only concerned…like I talk to somebody in Delhi.

TEHELKA: Okay.

R.K. JAIN: He will come and sit with me. He will give me the guarantee of that amount, which I'm giving it to him in his account.

TEHELKA: Abroad?

R.K. JAIN: I have a guarantee here.

TEHELKA: Okay. Bank guarantee?

R.K. JAIN: Not bank guarantee.

TEHELKA: Verbal guarantee.

R.K. JAIN: Verbal guarantee with one or two common friends…

TEHELKA: Okay.

R.K. JAIN: …so that he can't get away.

TEHELKA: Okay.

R.K. JAIN: As soon as the money is transferred, we show him the slip. The money is being transferred.

TEHELKA: Then he gives you the equivalent in Indian rupees.

R.K. JAIN: Then he gives…

TEHELKA: Okay.

R.K. JAIN: That's the way they do it. Sometimes my brother needs money abroad. All right? Then I push it to my brother's account.

TEHELKA: Okay. Which is the biggest transaction you have done?

R.K. JAIN: I've done the Sultam.

TEHELKA: How much was it worth?

R.K. JAIN: That was 600 crores. Three per cent for me.

TEHELKA: 20 crores.

R.K. JAIN: For me it was just half a per cent. [tehelka laughs]. I tried to explain Jaya-ji "I can do it in two per cent" because he said four per cent. Actually half a per cent that fellow took it to introduce me to

75

Chaudhary. He was the middleman in between me and Chaudhary. He wanted half a per cent for himself. And I tried my best to tell Jaya-ji "Take two per cent." She said, "No, no, Jain, three per cent". She said, "Don't tell…unless and until they give three per cent." I said, "Okay, whatever you can…"

TEHELKA: So that was worth how much to you? Half a per cent of 600 crore?

R.K. JAIN: Nothing much.

[Both laugh]

TEHELKA: That's quite a lot of money.

R.K. JAIN: You see, the kind of… 

TEHELKA (interrupts): Half a million dollars.

R.K. JAIN: Yeah. But you see, the place where you're sitting, you can make any amount of money you want. One deal of Sukhoi, one deal of air jet trainers and one big deal of submarines, or like…there was a…. In defence…deals are…all deals are, you know, 500 crore, 700 crore….

R.K. JAIN: Jaya Jaitly is the second wife. But not officially married to Jaya Jaitly. She's president of the party also. So there are two defence ministers. One is George Fernandes, another is Jaya Jaitly.

[Both laugh]

TEHELKA: That's cute. Very cute.

R.K. JAIN: And I am basically the front of Jaya Jaitly and George Fernandes. If you want, I can show you the minutes of the meetings. It is cyclostyled in our different conferences...national conferences, that whenever party needs money, Mr. Jain will have to arrange that money and give it to the party. That's the job of the national treasurer.

TEHELKA: Is there only one treasurer?

R.K. JAIN: Yeah. I can't say, "no". I am the only treasurer.

TEHELKA: How many funds...how much funds did you manage to generate for the party so far?

R.K. JAIN: Till now I think I'm worth…I have given them more than 50 crore rupees.

TEHELKA: Fifty crore rupees. And how much did you make for yourself? It's good business!

[Jain smiles. All laugh]

TEHELKA: No, he is our permanent consultant of West End International.

TEHELKA: Definitely, definitely. Yeah, yeah.

* * *

Time to move on from Jain. Coming to know that BJP President Bangaru Laxman had taken on himself the mantle of swinging corporate kickbacks, we looked at a way of approaching him in a costless manner. For a while RSS trustee R.K. Gupta was asking for a sum of Rs. 25 lakh for an introduction to Laxman and getting the job done. Sahni, the other defence middleman, himself had put a figure of Rs. 10 lakh. West

76

End, obviously, had no budget of that kind. We talked to H.C. Pant. He offered first to take us to Saheb Singh Verma, BJP MP, who would then at a cost of Rs. 1 lakh take us to Laxman. Eventually, Pant sent Mohan Singh, PS to former Minister of State of Defence Hiren Pathak, to introduce us to Raju Venkatesh, Laxman's personal secretary. Venkatesh introduces us to Laxman. Here's the first meeting.

{Tehelka gets up to go to the room of Mr.Bangaru Laxman ]

TEHELKA: Sir, I am from West End International…

BANGARU LAXMAN: Hmm…hmm.

TEHELKA: So I am chief representative. It's written in my liaisoning this thing.

BANGARU LAXMAN: Hmm, hmm.

TEHELKA: …so we are interested in India investment. Around…we are interested in 2001 to 2002 around 5,000 crores. We already moved a proposal to PM that telling him that foreign direct investment. And we would like to introduce our night vision for defence….

[Pause]

TEHELKA: Can I show you? This is…this is the proposal.

[Camera moves up]

[Bangaru Laxman comes into frame] 

TEHELKA: Sir, this is hand…. This is the material…. This is thermal…hand-held thermal camera.

BANGARU LAXMAN: Hmm…hmm.

TEHELKA: Already I talked to defence people…officers. Lt. Gen. [sic] Choudary.

BANGARU LAXMAN: Hmm.

TEHELKA: And Lt. Gen. Dhillon also.

BANGARU LAXMAN: Hmm.s

TEHELKA: So they are willing to take our item. It is a very good item, compared to CSF-Thomson and El-Op. They…they are our compet…competitors. That everything is set up there. Now I need…uh…your favour to Defence Secretary.

BANGARU LAXMAN: I know him…but…no…at what stage the proposal is?

TEHELKA: The proposal is…if Defence Secretary will send the…al…. Already the file is with the Defence Secretary. Already users…that means they will decide which item they will use or not. So they'll send the file to Defence Secretary.

BANGARU LAXMAN: Hmm.

TEHELKA: So what should we do, thinking on these lines. So if Defence Secretary will agree, so our company will be short-listed. We will get around 60 crores of rupees order.

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BANGARU LAXMAN: Hmm…who are the people who…who will help this?

TEHELKA: Yeah.

BANGARU LAXMAN: I mean, there must be some committee which must have gone in.

TEHELKA: No, that is they've approved. That PNC will open January first week. Before we have…. Sir, there is one reason I'll tell you very frankly, openly. So in the bureaucratic and in the political level, they will not allow in the third company into the fray. Reason, two companies are already supplying.

The next meeting with BJP President Bangaru Laxman takes place in the New Year. By now, the token advance of Laxman had been whittled down by West End to Rs. 1 lakh from Rs. 5 lakh. This after presenting a gold chain to his other secretary, Sathyamurthi, and a token amount of Rs. 10,000 to Raju Venkatesh. All this for the sole purpose that they would project West End as a very big and credible company to Bangaru Laxman . Credible, of course, in this context, meant the capacity to give huge kickbacks.

BANGARU LAXMAN: …He said how things we don't normally involve….I said okay.

TEHELKA: No, that. No, we have a lot of other things. Power projects and lot of things we have. You know, once we are starting from the binoculars. You know, several times he asked me, "I want to introduce.... I will go to introduce Mr. Bangaru…. Mr. Bangaru Laxman." I said this, "I am an Indian. I don't know Hindi very well." So I said, "Yes, I am an Indian. I can go directly meet…meet him. I have the company credibility there. Company's just like…bigger than Tata. You know, I can go directly to meet Mr. Bangaru Laxman. He can understand my position. Isn't it?"

BANGARU LAXMAN: Accha.

TEHELKA: Isn't it? There is…I don't need any commitment from you also.

BANGARU LAXMAN: All right. Meeting was set. I'm your…

[Frame shifts back and forth.]

TEHELKA: All right. …Satya...

BANGARU LAXMAN: Directly contact me.

TEHELKA: Hmm?

BANGARU LAXMAN: Talk directly.

TEHELKA: Hmm.

BANGARU LAXMAN: First he [Sathyamurthi] will fix up appointment.

TEHELKA: Yeah.

TEHELKA: Sir, can…can I give you one lakh rupees for it? For a token. My…

[Sound of door opening and closing. Somebody enters and says something toBangaru Laxman offscreen and leaves.]

TEHELKA: Sir, my boss is here. In…in…a…in Oberoi executive...executive suite.

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BANGARU LAXMAN: Accha.

TEHELKA: So he also wants to meet you.

BANGARU LAXMAN: Accha.

TEHELKA: So, can you arrange the appointment tomorrow? Can you arrange?

BANGARU LAXMAN: Tomorrow?

TEHELKA: Hmm. So….

[Camera shifts towards Bangaru Laxman]

TEHELKA: So he will come and meet you. So will you…uh…what I told to Mr. Satya that matter.

BANGARU LAXMAN: Hmm.

[Bangaru is fully in the frame now]

TEHELKA: For the party fund.

BANGARU LAXMAN: Hmm.

TEHELKA: I have five lakh rupees.

BANGARU LAXMAN: Hmm.

TEHELKA: And today I will give you one lakh rupees. For just the beginning. A New Year gift.

BANGARU LAXMAN: Hmm, hmm.

TEHELKA: Okay? But…but…but, tell me, sir, very frankly, Mr. R.K. Gupta told me he arranged the meeting. Outside the….

BANGARU LAXMAN: I do not know what exactly transpired between you and him. He just…he was mentioning….

TEHELKA: Okay.

BANGARU LAXMAN (quoting R.K. Gupta): "Sir, are you interested in that work? Would you entertain?" I said he's already met me and…

[Camera shifts towards Tehelka reporter]

[Tehelka reporter takes out wads of currency notes and hands them over toBangaru Laxman]

TEHELKA: Sir, this is a small gift…small gift.

BANGARU LAXMAN: Oh, no, no…

TEHELKA: It's a small gift for the New Year party. Right?

[Frame again shifts towardsBangaru Laxman]

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[Bangaru Laxman opens the drawer, takes money from Tehelka reporter and puts it away]

TEHELKA: New Year party fund, hain? One lakh rupee, hain?

[Pause]

TEHELKA: So what time can I call my boss here?

BANGARU LAXMAN: Tomorrow…hmm…

[Tehelka reporter's mobile phone rings]

BANGARU LAXMAN: …Five o'clock.

TEHELKA: Yeah, in five o'clock. In here?

TEHELKA: And then…rupee.

BANGARU LAXMAN: When do you…?

TEHELKA: Tomorrow. Rupee or dollar?

BANGARU LAXMAN: Dollars. You can give dollars.

TEHELKA: Okay. We can give you dollars. Sir, we need your blessing.

BANGARU LAXMAN: Okay.

TEHELKA: Okay. I will not take Mr. R.K. Gupta to…. I can come directly to you. Anytime I need I will make appointment with Mr Satyamurthy. Okay?

[Bangaru Laxman rises. They shake hands.]

The third meeting with Bangaru Laxman took place with Alvin D'Souza, president of West End. Laxman was expecting a sum of around $25,000 from West End. We didn't want to tell them that there was no sum to be delivered till after the meeting when everything would already be on tape. Here Laxman talks about how the BJP and Vajpayee use Principal Secretary Brajesh Mishra as the guy who pushes their deals. Mishra, incidentally, is the National Security Adviser. Both Laxman and West End argue that R.K. Gupta had no hand in the meeting.

TEHELKA: I'm Alvin D'Souza.

TEHELKA: And he is…Mr. Bangaru Laxman, president, party in power. They are the ruling party. The biggest political party.

BANGARU LAXMAN: You are based in…?

TEHELKA: Based in London. We have interests in Telecom, Power, Aviation and Defence, obviously. We are trying to get a foothold in the Indian defence market through hand-held thermal cameras. Night vision. And if there's a prospect of something in…we'll be prepared to do it at a very no-profit basis if it gives us an entry into the Indian market. In that sense. We just wanted your blessings on the project. And Mathew's telling me there's a slight problem in that.

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TEHELKA: Yeah, yeah, sir. What is the problem? I told Mr. Krishna also this matter. There is basically one Israeli company there. So they are basically El-Op, El-Op. So one Mr. Brajesh…Mr. Brajesh Mishra, that principal secretary to PM, he is supporting that company very, very openly. So you know at that time, you know, he won't allow that third company in the picture.

TEHELKA: So that is not that formidable a problem.

TEHELKA: Exactly, exactly…I said…yeah, yeah.

TEHELKA (interrupts): You can solve it.

TEHELKA: Yeah, yeah, yeah. But I, I convinced my boss that Mr. Bangaru Laxman can give that, the political cover in this matter.

[Pause]

TEHELKA: Did you show him our brochures?

TEHELKA: Yeah, yeah. I did.

BANGARU LAXMAN: Yes, I've seen.

[Pause]

TEHELKA: And did you see any other things that…basically how to approach it? Considerable work has been done on the users side…military…they all liked the product. And they foresee no problems in it going through. It's the fourth generation. 

BANGARU LAXMAN (interrupts): …on Brajesh Mishra? How? 

TEHELKA: That…that defence people told me, that officers told me, that bureaucrats also told me this matter. 

[Pause] 

TEHELKA: Do you see that as…

BANGARU LAXMAN: You see, also there is the PNC [Price Negotiation Committee]?

TEHELKA: Sir, there is a PNC there but there is lot of process there before PNC. You know they have to first…evaluation, and then short-listing, and then the PNC will come. You know, they are not allowed to…third party inside that…in the evaluation. That is a…

[Pause] 

TEHELKA: Are you experienced with defence matters generally? 

BANGARU LAXMAN (nods in assurance): Hmm. No, my experience is…

[Pause] 

TEHELKA: Mr. R.K. Gupta told me on that day, I told you, na? 

BANGARU LAXMAN: Hmm. 

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TEHELKA (continues): That through you, sir, he can break that one. I said, "I don't, I don't want to…I don't need any third party to meet Mr. Bangaru Laxman I can go directly to meet Mr. Bangaru." So he asked me 20 lakhs for the meeting to you. I said, "If…but in front of me I cannot…I can give that money to Mr. Bangaru Laxman in a party fund." Sir, that, that also I told Satya also we are ready to give 4 to 5 per cent as commission. [Laxman nods] Political commission. That other…that we have to give…rest of that we have to give separate. 

TEHELKA: Do we do it with the treasurer? I don't know how do we proceed in this. Do we wire transfer the money? 

BANGARU LAXMAN: Yeah, yeah. I will tell you….

TEHELKA: Okay. 

[Pause] 

TEHELKA: Do you see any problems in that? I mean, we…we are not saying that…that this has to happen, in the sense that it's sacramount. But even if we have a 25 per cent chance, we're willing to take the risk. 

BANGARU LAXMAN (nodding): That's true. 

[Pause. Tehelka Investigative Team reporter gets a call on his mobile. He apologises and leaves the room to take the call.]

TEHELKA: So tell me what exactly is the procedure? If you could just tell me the details. 

BANGARU LAXMAN: Look…no. Probably you may be knowing the procedure better than me. 

TEHELKA: Yeah, yeah. That's why I was here. But things don't move in India without some political….

BANGARU LAXMAN: Yes, that is true, provided…. We shall try to do that… 

TEHELKA: Yeah. 

[Pause] 

BANGARU LAXMAN (continuing): So far we have been taking the help of Brajesh Mishra to organise this because Brajesh Mishra is there on a number of committees apart from Principal Secretary to Prime Minister. 

TEHELKA: Okay. 

BANGARU LAXMAN: And any defence issues, he is…

TEHELKA: Yeah! 

BANGARU LAXMAN (continuing): We normally turn to him because he has access to the Defence, Foreign and other related ministries. 

TEHELKA: Yeah. 

BANGARU LAXMAN: But in this you said that somebody…

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TEHELKA: Yeah. I don't know how true that thing is. I mean, it's just that somebody told us. It could be wrong. We're not sure. 

BANGARU LAXMAN: Yes. I will…(nods) 

TEHELKA: And basically, is he the only person with influence? I'm sure you carry more influence than him. 

BANGARU LAXMAN: It's like…. No, he deals with the bureaucracy….

TEHELKA: Okay. 

BANGARU LAXMAN (continuing): And also conveys the views of the bureaucracy to Prime Minister. So he is the liaison between the bureaucracy and the Prime Minister.

TEHELKA: Prime Minister. Okay. 

BANGARU LAXMAN: So…therefore, whatever we tell to Prime Minister, he also normally have a word with Mishra. 

TEHELKA: Okay. 

BANGARU LAXMAN: And then certain things he will say that "No, no, you convey this to Mishra…"

TEHELKA: Okay. 

BANGARU LAXMAN (continuing): "…You pass on this information to Mishra…." That's how things here….

TEHELKA: Okay. So basically he is the lynchpin in all the dealings? 

[Laxman nods] 

BANGARU LAXMAN: He is. But I'll find out all this information. 

TEHELKA: Okay. 

BANGARU LAXMAN (continuing): But since this is a…the superior thing, I think they shouldn't have any kind of…

TEHELKA (completing Laxman's sentence): Major roadblock on it? 

[Laxman nods] 

TEHELKA: Okay. 

BANGARU LAXMAN: At…in any case, I'll…. What would be the total worth of the…?

TEHELKA: It could be anything above 200 crores, as they say. So about 50 million dollars to 60 million dollars. But then, if you give us the whole order, then that's, like, much more. It'll go up to, like, 600 [crore], so that would be about, I guess, 180 million dollars or something. Two hundred million dollars. 

[Laxman nods] 

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TEHELKA (continuing): That's…that's …it's much easier for us to transfer funds abroad than deal within India on a day-to-day basis. So we'll come to know tomorrow or something? Is there…you don't deal with…. There's a Mr. Ranjan Bhattacharya also, I'm told. Is he also important? 

BANGARU LAXMAN: Well, he is a family member of Prime Minister.

TEHELKA: Okay. 

BANGARU LAXMAN: And…he does something. But these things I don't think he will get involved. 

TEHELKA: Accha. I was told that he's got a…I mean, lots of projects and all being moved. I don't know how far it's true….

BANGARU LAXMAN: Maybe. I don't say that he might be involving himself in many other things. But as far as defence things are concerned, I don't think he has much. 

TEHELKA: Yeah. 

BANGARU LAXMAN: Somewhat in power projects. This and that. 

TEHELKA: Yeah. I believe in Enron he had a major hand to play. And would it be like…their accounts, I believe….I mean which banking nerve centers do you operate in? Do you use Zurich or which cities do you use? 

BANGARU LAXMAN: You have to consult our treasurer who will be dealing with this. 

TEHELKA: Okay. 

BANGARU LAXMAN: I will have to find out from him first. I have taken over recently. I was not dealing with these matters earlier…

TEHELKA: Okay. 

BANGARU LAXMAN (continuing): …when I was in party. So I will have to check up from him. In such cases what…

TEHELKA: Okay. 

BANGARU LAXMAN: And so far, you have yet to start. Certain things are in…still in the pipeline. That through establish agent who maintains a liaison with the supplier and also with the government. 

TEHELKA: Okay.

BANGARU LAXMAN (continuing): And government, through us.

TEHELKA: Yeah. 

[Sound of door opening and closing] 

TEHELKA: Yeah, no, no. 

BANGARU LAXMAN: Therefore, I will….

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TEHELKA: Okay, but who'd be the main person we deal with? I mean, would you give us a point man? We will deal with him. 

BANGARU LAXMAN: Oh sure. 

TEHELKA: Is Sathya okay? 

BANGARU LAXMAN: No, not Sathya. 

TEHELKA: Not Sathya? Okay. 

BANGARU LAXMAN: We will, I will give you…

TEHELKA: Okay. 

BANGARU LAXMAN: Let me get in touch with those people. I will tell you tomorrow. I will find out from my treasurer and I will let you know. 

* * *

TEHELKA: Okay. So should we meet again tomorrow? Possible? Some time tomorrow?

BANGARU LAXMAN: Yes. You will ring me and then you come? 

TEHELKA: Yeah? It will be more convenient. We were supposed to convey some money today and as you can understand my problem…getting dollars was a little hassly and we didn't get it the way we want. So is it possible that I could come tomorrow with the dollars? 

BANGARU LAXMAN: Yeah, yeah.

TEHELKA: Yeah? So what time around? Should we give you a call and come? 

BANGARU LAXMAN: Yeah. 

TEHELKA: So, will you get that piece of information by tomorrow? 

BANGARU LAXMAN: I hope so. At least the system…

TEHELKA: At least the system, the whole general picture of it. 

BANGARU LAXMAN: Okay. 

TEHELKA: I'm told you have possibilities of becoming the first Indian Dalit Prime Minister. Is that true? 

[Pause; Laxman laughs] 

TEHELKA: Then we'll meet tomorrow, right, sir? Thanks a lot, thank you…it was a very nice pleasure meeting you.

BANGARU LAXMAN: Thank you. 

* * *

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Two days later, after we are ducking all calls from Bangaru Laxman's office and, comically, from Bangaru himself asking where the money is, we meet up with Sathyamurthi to sew up the final deal. Sathymurthi, incidentally, had come to meet Alvin D'Souza at his suite in a five-star hotel asking for his share of the bounty. Here, Sathyamurthi is convincing us about the efficacy of the Bangaru Laxman channel for our lobbying purposes. He tells us he will be taking us to meet BJP treasurer Ved Prakash Goyal and, most importantly, tells us that Bangaru even handled the Sukhoi deal with a cartel of middlemen. Both Bangaru and Sathyamurthi are interested in cutting R.K. Gupta, the RSS trustee, out of the deal.

TEHELKA: So, if that, Bangaru's channel will operate it, haan? There is any conflict will start? 

SATHYAMURTHI: No, nothing. Nothing. 

TEHELKA: No problem at all?

SATHYAMURTHI: Absolutely no problem. 

TEHELKA: Yesterday Mr. Bangaru given the impression that the defence work of BJP is doing Mr. Brajesh Mishra. 

SATHYAMURTHI: Yeah. 

TEHELKA: Through him he will do? You know any…anything?

SATHYAMURTHI: There's all one team, I'll tell you. Mr. Laxman, Brajesh and the man who looks after our financial things. 

TEHELKA: Okay.

SATHYAMURTHI: We are supposed to meet our financial man today. After we meet Bangaru-ji also. He'll tell the same thing, "You go with Sathyamurthi and deliver the thing there." 

TEHELKA: Who's he? 

SATHYAMURTHI (continuing): That we'll decide. And I'll meet him now. Because to meet you only I came here. Because I cannot talk from the office. You know that well. 

TEHELKA: Okay.Tell me very frankly, what I have to…to meet whom? No, you are taking me...but what is his name? 

SATHYAMURTHI: Who? 

TEHELKA: That you're going to introduce. 

SATHYAMURTHI: No, no, it may not be necessary also. 

TEHELKA: Otherwise I will not come. 

SATHYAMURTHI: No, no, he is our…one Mr. Ved Prakash Goyal. 

TEHELKA: Hmm. 

SATHYAMURTHI: Ved Prakash Goyal. 

86

TEHELKA: Ved Prakash Goyal. He is a…

SATHYAMURTHI: He is a treasurer of the party nowadays. 

TEHELKA: Okay. 

SATHYAMURTHI: And in the end we taken Gupta…R.K. Gupta. 

TEHELKA: Okay, okay. Gupta is playing the game he started. 

SATHYAMURTHI: Yes. Yesterday I discussed it with my treasurer. He asked me to screw him and…

TEHELKA: Gupta is…Gupta's phone…I had reached Delhi. When I entered into Delhi… I got four times Gupta's call. 

SATHYAMURTHI: Don't pick up. 

TEHELKA: If he will create any problem, that is not my mistake. I'm telling you that is the mistake of you and your boss. 

SATHYAMURTHI: He will not create any problem. Because his thing is in it. He is in our hands. 

TEHELKA: That is good. 

SATHYAMURTHI: He won't do any mischief. 

TEHELKA: Hain? 

SATHYAMURTHI: He cannot play mischief with us. 

TEHELKA: No, he done lot of deals, that is true, through Mr. Bangaru. He has done lot of deals…in defence deals. 

SATHYAMURTHI: I know, nobody else knows that in my office. 

TEHELKA: Okay. 

SATHYAMURTHI: That's what…

TEHELKA: But he told me that he will give the money to Mr. Bangaru also, party fund also. 

SATHYAMURTHI: And he has to give, he has to give ultimately. 

TEHELKA: Okay.What he done the last big deal? Can you give any information? 

SATHYAMURTHI: No, that I cannot tell. 

TEHELKA: No, tell me that. I want to know about him. He told me he is a big shot. 

SATHYAMURTHI: Yes, yes. 

* * *

87

Here Sathyamurthi talks about the Sukhoi deal. He confirms the involvement of R.K. Gupta, Sudeep Chaudhary and Bangaru Laxman in the deal. And says that Bangaru Laxman has 5-6 different foreign accounts.

TEHELKA: Okay, fine. That's fine. My boss yesterday also asked Mr. Bangaru…about you. I can fix the deal with my…officers can fix the deal with Mr. Sathya. He said, "Yes". Now Mr. Gupta told me he done the deal of Sukhoi-30 in India. That is true? 

SATHYAMURTHI: It is true. 

TEHELKA: Gupta told me. It's a big deal, na? 

SATHYAMURTHI: They were here about a month back. Sukhoi. Nobody knows that in my office. They know that some delegation has come. 

TEHELKA: Okay. 

SATHYAMURTHI: Because myself and Mr. Laxman, we operated...

TEHELKA: That Sukhoi very well.... 

SATHYAMURTHI: We operated very…nobody, nobody can smell. 

TEHELKA: Okay, fine. 

SATHYAMURTHI: That's what you've seen in our office, you know we're very normal. 

TEHELKA: Okay. 

SATHYAMURTHI: It's like a very small needle behind that kind of a congested place, and we are very cautious. 

TEHELKA: That money entire…go to the party? 

SATHYAMURTHI: Yeah. Even the money, what you giving, we give it to the party. We won't take it. 

TEHELKA: No, Mr. Gupta, he said. Yesterday Mr. Bangaru told me that he will give his overseas accounts also. 

SATHYAMURTHI: That is a second part. I'll tell you. 

TEHELKA: He told me that "I will give the overseas." You have any accounts overseas? I can open an account for you. 

SATHYAMURTHI: I'm doing it in London now. 

TEHELKA: Okay. 

SATHYAMURTHI: I've told my friend. 

TEHELKA: Is very fast. It will not take time. That is a big benefit for….

SATHYAMURTHI: Hmm.

88

* * *

TEHELKA: The Sukhoi, party got how many percentage? 

SATHYAMURTHI: It's a good job. 

TEHELKA: Hain! 

SATHYAMURTHI: It's a good job. More than seven, nearly eight per cent. 

TEHELKA: Seven, eight per cent. You got? How much you got? 

SATHYAMURTHI: I am quite happy! 

TEHELKA: Sukhoi is a historical deal, baba! 

SATHYAMURTHI: Yes. 

TEHELKA: 34,000 crores of rupees. So did Mr. Gupta get? 

SATHYAMURTHI: Gupta is also involved. 

TEHELKA: Gupta…and Sudeep Chaudhary also involved? 

SATHYAMURTHI: He is not, he is not the only one. It is a group work. It is teamwork. 

TEHELKA: That Mohinder Pal Sahni involved? 

SATHYAMURTHI: Yes. 

TEHELKA: He was? 

SATHYAMURTHI: Yeah! 

TEHELKA: Really? 

SATHYAMURTHI: Yes, I have a…he and him. I have not met him. I have not met him. Because I am not close to many people. 

TEHELKA: Yeah, Mr. Mohinder Pal Sahni approached me a lot of times. He will do the work through Mr. Bangaru, like that. See, I am an Indian, I am not a foreigner, I can come and directly meet you. If I will give Mr. Gupta for a Rs. 10 lakh. He will not give 10 lakh to your boss. 

SATHYAMURTHI: Not necessarily. Actually I will tell you. 

TEHELKA: Hmm. 

SATHYAMURTHI: It's only…we have a very good hold on this. What yesterday I was telling you. 

TEHELKA: Okay. 

SATHYAMURTHI: Because after P.V. Narasimha Rao, he is the only South Indian who is involved in this. 

89

TEHELKA: Yeah! 

SATHYAMURTHI: And this kind of deals in India only South Indians can do. Nobody else can do. 

TEHELKA: That is true! True fact. 

SATHYAMURTHI: We do in a very systematic way and we are the trusted people. Maybe our charges may be one or two per cent higher than…

TEHELKA: Yeah! Yeah! 

SATHYAMURTHI: But we don't cheat people. 

TEHELKA: No, no. You know, if we can go through one or two percent, that is not a problem. I am telling very frankly. But our work should have the best. 

SATHYAMURTHI: First we'll short-list it. And this, if you give him the dollars today…so that your, your credibility will increase. 

TEHELKA: Okay, today I'll give the dollars. 

SATHYAMURTHI: Okay. Security money. 

TEHELKA: $31, 500 I will give you. 

SATHYAMURTHI: It's six o'clock, he'll be free. 

TEHELKA: Hmm. Yeah. 

SATHYAMURTHI: I'll make sure that he meets you there…10-15…you know. You meet Bangaru-ji. Depends on his suggestion. If it is necessary, we can…

TEHELKA: Mr. Bangaru, how many accounts in foreign? One or two? 

SATHYAMURTHI: He must be having five, six. 

TEHELKA: Five, six? 

SATHYAMURTHI: Different places. 

TEHELKA: In his own and party? In his own? Fine. In Swiss bank, there is no problem, we can transfer any time. We can have, we can have…wire transfer. 

SATHYAMURTHI: What I was planning to do…actually I was supposed to go to Thailand last week. 

TEHELKA: Okay, okay. 

SATHYAMURTHI: During that time I was supposed to do that. 

TEHELKA: Okay. 

Now, to go back in time and bring you up to date about where West End had reached with some of the other channels it had opened. Major General Murgai (Retd.) had suddenly assumed a very key role as far as

90

West End was concerned. He was going to be the person to introduce West End to Jaya Jaitly, Major General Choudary of Weapons and Equipment, and L.M. Mehta, the additional defence secretary. Gen. Murgai himself was being motivated at sufficient intervals with sums of around Rs. 25,000 and the promise of future employment with West End at a dollar salary. Here Gen. Murgai is introducing West End to Surendra Sulekha, an industrialist from Kanpur, who has strong links with the Defence Ministry. Sulekha has been supplying clothing to the Indian Army for the last 20 years and is close to Jaya Jaitly, president of the Samata Party.

MAJ.GEN. MURGAI: Come, I am bringing together two industrialists…

[They all laugh and shake hands] 

SURENDRA SULEKHA: Sit, sit.

TEHELKA: Yeah, yeah. 

MAJ.GEN. MURGAI (introducing): He is one of the top industrialists of Kanpur, Mr. Surendra Sulekha. 

* * *

TEHELKA: Now we need a political cover. 

SURENDRA SULEKHA: Political cover, what? What work is there? 

TEHELKA: Work is that, if the company…two or four companies were short-listed…

SURENDRA SULEKHA: Hmm. 

TEHELKA: The final decision will taken by the Ministry of Defence. 

SURENDRA SULEKHA: Hmm. 

TEHELKA: That means George…Mr. George Fernandes. 

SURENDRA SULEKHA: Hmm. 

TEHELKA: So that time…is the channel to George Fernandes is Mrs.Jaya Jaitly.

SURENDRA SULEKHA: Hmm. 

TEHELKA: She will…she is the briefcase woman. 

SURENDRA SULEKHA: Hmm. 

TEHELKA: So we want to fix that. 

SURENDRA SULEKHA: Tell me what is the work…what work you want to ask? 

TEHELKA: This is the first work. This is the first work. The user side already I can say. And bureaucrats also, it's not a problem. And now the thing is with the…

SURENDRA SULEKHA: From there, there will be no problem. I take guarantee.

91

TEHELKA: Yeah. So we can give them at…that normal practice of commission there in the political side.

SURENDRA SULEKHA: Hmm. 

TEHELKA: Around three to 3.5 and four. That is that MNCs are paying.

Multinational…foreign companies are paying. For beginning. No-profit, no-loss. I can go to five. 

MAJ. GEN. MURGAI (pointing to Sulekha): You have a deal with him. He will get your letter issued for evaluation.

TEHELKA: Okay. 

MAJ. GEN. MURGAI: Matter finished. So there are two separate contracts. At the moment…

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: …evaluation.

TEHELKA: Hmm. 

MAJ.GEN. MURGAI: It is his [pointing to Sulekha] responsibility. He will get it done.

TEHELKA: Okay. 

MAJ. GEN. MURGAI: His means...I will wherever my contacts...I will help him out.

TEHELKA: Okay. 

MAJ. GEN. MURGAI: Okay? One contract over, you can be at ease. The only thing is when Choudary sends the letter, give a copy of it to him.

TEHELKA: Okay. 

MAJ. GEN. MURGAI: And your…there will be no stoppage of your work from the ministry.

TEHELKA: Okay. Okay. 

MAJ. GEN. MURGAI: That contract is over at the moment.

TEHELKA: Hmm. 

MAJ. GEN. MURGAI: For long-term basis…

TEHELKA: Hmm. 

TEHELKA: In this evaluation process, what you are expecting?

SURENDRA SULEKHA: You just tell me…what…what I will expect? You know your work better than me. Okay? You just offer. I'll ask the concerned person. 

MAJ.GEN. MURGAI: That is…you take care of it. Yaar, see... 

92

SURENDRA SULEKHA: Yes, then there will be no payment. Money will be paid only after the work is completed. That is such a simple thing, sir!

MAJ.GEN. MURGAI: Haan, all right. 

SURENDRA SULEKHA: Isn't it?

MAJ.GEN. MURGAI: Haan, all right. 

MAJ.GEN. MURGAI (asking Sulekha): Now tell us about it…

SURENDRA SULEKHA: According to me, the evaluation letter which he has given… 

SURENDRA SULEKHA: …give me a copy of that. I'll get the order for that done from somebody or the other.

MAJ.GEN. MURGAI: (addressing tehelka): Finish it for him! 

TEHELKA: Hmm.

MAJ. GEN. MURGAI: Your evaluation...he will get it done. That's what I'm saying. 

SURENDRA SULEKHA: But what will be my interest [looks meaningfully at both of them]?

TEHELKA: Hmm, yes. 

MAJ.GEN. MURGAI: Yes, that's right…

SURENDRA SULEKHA: My simple question, sir, I will introduce you.

MAJ. GEN. MURGAI: No, naturally. 

SURENDRA SULEKHA: You talk her directly…

TEHELKA: Hmm. 

SURENDRA SULEKHA: …what percentage you will give her, what you will give….Everything you talk her.

TEHELKA: Yes. 

SURENDRA SULEKHA: I will tell her everything. She will listen you. She will say, "yes".

TEHELKA: Hmm. 

SURENDRA SULEKHA: What will be my interest?

TEHELKA: Tell me.

SURENDRA SULEKHA: No…I don't want you give me something so that I do this introduction and… 

TEHELKA (interrupts): No, no, no, no, no.

SURENDRA SULEKHA: I want something…permanently something.

93

TEHELKA: Yeah. 

SURENDRA SULEKHA (looking at Murgai): What do you say, sir? Tell me?

MAJ. GEN. MURGAI: All right.

* * *

West End discusses with Gen. Murgai how much they will pay for Surendra Sulekha's involvement to get the letter from General Choudary inviting them for a field trial of their products. Gen. Murgai then informs Surendra Sulekha who will get what if Jaya Jaitly's introduced to West End by Sulekha.

MAJ. GEN. MURGAI: (to Sulekha): It's like this...we have made two distinct...

SURENDRA SULEKHA: Haan. 

MAJ. GEN. MURGAI: This…as far as Jaya is concerned…what he wants is a proper meeting and explain his case.

[Sulekha nods] 

TEHELKA: Not like hanky-panky. Everything I want to explain.

MAJ. GEN. MURGAI: We'll give two [lakh] to Jaya in that. Initially. And one for you, one for me. All right? 

[Sulekha nods]

TEHELKA: And evaluation…

MAJ. GEN. MURGAI: Evaluation. Total package is five [lakh] . We'll discuss on the…I'll tell you downstairs. Total package is five. Okay? 

[Sulekha nods] 

TEHELKA: When you can arrange the meeting, sir?

SURENDRA SULEKHA: I will ask her today. 

TEHELKA: Okay. You have my number?

SURENDRA SULEKHA: Haan. 

MAJ.GEN. MURGAI: All right. Then in that...

TEHELKA: Make it in a hotel. That is good. I don't want to come here if you're not coming. 

MAJ. GEN. MURGAI (pointing to Sulekha): He's got a house in Noida.

TEHELKA: Okay. She will come there? 

SURENDRA SULEKHA: Either at my house or George Fernandes' house.

94

TEHELKA: That official house? 

SURENDRA SULEKHA: Official house.

TEHELKA: Okay. 

SURENDRA SULEKHA: She will meet you just alone only. Nobody else will be there.

TEHELKA: Okay. 

SURENDRA SULEKHA: You can talk as much as you want.

TEHELKA: You…you'll be there?

SURENDRA SULEKHA: I'll be there. I'll be there with you. 

* * *

There's a small wait at Defence Minister George Fernandes's house for 'discussions' with the President of the Samata Party, Jaya Jaitly The meeting has been organised by Surendra Sulekha and General Murgai is also there. 

The sequence begins with Sulekha asking for the Rs. 2 lakh token money due to Jaya Jaitly for the first face meeting. On this occasion we are carrying two camera devices so that in the event one of them  malfunctions, we have a back-up.

[Surendra Sulekha walks in] 

SURENDRA SULEKHA: Packet is where?

TEHELKA: Packet…that money's in the briefcase. 

SURENDRA SULEKHA: That you take in this hand. That give to me because…I'm handling that matter.

TEHELKA: Okay, okay. 

[Sulekha looks up, calls to someone, presumably to take the briefcase.] 

TEHELKA: No, I will take, I will take. You take one envelope.

SURENDRA SULEKHA: Okay, you just give it. Give that…

[Tehelka starts taking out money from the briefcase and wrapping it in a newspaper. Sulekha now comes clearly into the frame, bending down.] 

SURENDRA SULEKHA: You want coffee or tea?

TEHELKA (continues wrapping): No, that's okay. 

SURENDRA SULEKHA: Our director…it will not look nice.

TEHELKA: No thanks.

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SURENDRA SULEKHA: Not look nice. Just…cover it. 

[He turns around to check the door.] 

TEHELKA: No, I will cover it. Just put it. 

SURENDRA SULEKHA: Let's take it. 

[Tehelka journalist gets up and prepares to follow Sulekha out.] 

TEHELKA: That also I want to show her? 

SURENDRA SULEKHA: What is the need for that?

TEHELKA: No? 

SURENDRA SULEKHA: Madam, he is Mr. Samuel. 

[Tehelka journalist folds hands in a greeting] 

TEHELKA: West End…

SURENDRA SULEKHA: He's dealing in electronics and...

JAYA JAITLY: Yeah…

SURENDRA SULEKHA: I am also joining them.

JAYA JAITLY: Hmm. 

SURENDRA SULEKHA: Now they'll be starting something with the Defence. He's brought something for the party.

JAYA JAITLY: Hmm. 

[Jaya laughs] 

TEHELKA: So I'm from Kerala.

JAYA JAITLY: Oh. 

MAJ. GEN. MURGAI: I have been telling him for a long time. I told him, "You maybe a specialist in textiles, but now you must diversify into electronics." 

* * *

JAYA JAITLY: Till now, luckily I don't think too many people have become too enamoured by that. Till now everyone was going to IT [Information Technology].

TEHELKA: Yeah. People are interested in it. 

MAJ. GEN. MURGAI: I'm talking venture capital in IT only.

JAYA JAITLY: Hmm. 

96

MAJ. GEN. MURGAI: See, those people who have made lot of money in…

TEHELKA (proferring the packet of money, interrupts): Can I…can I give it to madam? 

[Tehelka journalist gives the package to another man standing to the right of the screen and folds hands. Jaya Jaitly acknowledges the gesture.] 

MAJ. GEN. MURGAI: This company…

JAYA JAITLY: Please send this to our minister…Mr. Srinivas Prasad. 

TEHELKA: Yeah.

JAYA JAITLY: He is the…hosting the National Council. 

TEHELKA: Okay, okay, okay. Okay.

JAYA JAITLY: We have two days where about 500 to 800 people will be going. 

TEHELKA: Okay, okay, okay.

JAYA JAITLY: The National Council elects the National President….

TEHELKA: Okay.

JAYA JAITLY: That is a once in two-year affair. 

TEHELKA: Okay.

JAYA JAITLY: And a new executive…the whole internal elections of the party finishes and democratically a new president is elected. 

TEHELKA: Okay, okay, okay.

JAYA JAITLY: So that process…

[Tehelka journalist laughs and the rest of Jaya Jaitly's sentence is inaudible] 

JAYA JAITLY (continuing): …We need some help because he said, "Look, I can do 50 per cent expense. You do the rest."

[Tehelka journalist laughs loudly] 

JAYA JAITLY (continuing): So the rest…whatever contribution…

TEHELKA: Yeah, yeah…

JAYA JAITLY (continuing): …We can manage.

TEHELKA: We need your blessing and…(laughs). We need your blessing also for this…our company. 

MAJ. GEN. MURGAI: This company is making quality products…

[Jaya Jaitly nods] 

97

MAJ. GEN. MURGAI: And now they are going in a big way for commercial selling. And also make a mark in Defence.

JAYA JAITLY: Hmm. 

MAJ.GEN. MURGAI: That is what they're doing. And they are making these night-vision binoculars, cameras….

JAYA JAITLY: Naturally, probably as far as I know because I don't know much about these things, but you all have to…whenever some new entry into…entrant into the field, they have to test the things. 

MAJ. GEN. MURGAI: That's right. 

JAYA JAITLY (continuing): …and all that.

MAJ. GEN. MURGAI: So for that testing, a request has been made….

JAYA JAITLY: Hmm.

MAJ. GEN. MURGAI: That we would like to give…and…our item should be tested. Generally what happens is that lot of requests keep on coming. So we want that at least…ours being a proper company….

JAYA JAITLY: Eventually they go on quality and price.

MAJ. GEN. MURGAI: That's right. But initially they have to short-list.

JAYA JAITLY: Hmm. 

JAYA JAITLY: If there's any way…if they are refusing to test it, that's…then we can step into the picture. In normal course, they would be…

SURENDRA SULEKHA: They should be…

JAYA JAITLY (continuing): If they are impressed with either the price or the look or whatever, there has to be something which would attract their attention.

TEHELKA: Yeah. 

JAYA JAITLY: …towards it. 

MAJ. GEN. MURGAI: So somewhere the…if they don't, then probably your help may be required.

JAYA JAITLY: Yeah. 

MAJ. GEN. MURGAI: …at least test the equipment.

JAYA JAITLY: Yeah, if they don't, we can always say, "Look you mustn't treat anybody unfairly. Give everybody a chance." 

TEHELKA: Yeah, yeah, yeah.

JAYA JAITLY: That's right. If there is any unfair practice, we can step in. 

MAJ. GEN. MURGAI: Yeah, that's right. That's right. 

98

SURENDRA SULEKHA: Where is the justice? Here is the only justice.

TEHELKA: Yeah, yeah. 

SURENDRA SULEKHA (continuing): Absolute justice is done….

JAYA JAITLY: Because if we…if we try to favour anybody particularly, specially when we don't know a thing, then we may be doing injustice to somebody else. 

TEHELKA: Yeah.

JAYA JAITLY: But if we say, "Look, don't do injustice to anybody…." And if somebody is being unfairly treated, not being called….

TEHELKA: Okay.

JAYA JAITLY (continuing): …somebody else is being favoured and you're not even being asked….

TEHELKA: Okay.

JAYA JAITLY (continuing): … then we'll say, "Look…you please do…because then there's…it's in our interest…."

TEHELKA: Okay.

JAYA JAITLY: …it's in national interest to consider all." 

TEHELKA: Okay.

JAYA JAITLY: "You then take the best, which is at the best price." 

SURENDRA SULEKHA: Okay.

JAYA JAITLY: So if any…that whole thing is going wrong, then we can step in if need be. 

TEHELKA: No, we need that, at this stage we need that. Two companies, they are…they are not allowing the third company to the picture.

MAJ.GEN. MURGAI: That's right. 

JAYA JAITLY: No, why should they not?

[Some crosstalk] 

SURENDRA SULEKHA: First…whether they do or not, then we will see...

JAYA JAITLY: First you'd be…you'd be applying. Then you'll naturally grab an opportunity to ask them, "Look, now I have applied. Are you going to respond to me at all or not?" If they say, "No, no", "we can't", "we don't know", "we'll let you know", and they don't sound very convincing, then we'll see.

SURENDRA SULEKHA: Then we'll see. 

JAYA JAITLY: But otherwise…after all when somebody applies, they can't just say, "We'll see." You know….

99

TEHELKA: Yeah, yeah, yeah. 

JAYA JAITLY: If they say, "Yes, certainly we'll consider your thing and get back to you by such and such a time…."

TEHELKA: Okay. 

JAYA JAITLY: If they do that…I really don't know how they function at all.

SURENDRA SULEKHA: First, you have to apply, then you have to wait for the response. 

TEHELKA: That already…that process is over right now.

SURENDRA SULEKHA: We'll have to wait the response. Then I...in case…

JAYA JAITLY: After a reasonable time you can chat with them and say…send them a reminder. And then if they don't, we can ask.

TEHELKA: Okay. 

MAJ. GEN. MURGAI (addressing tehelka): You see, sometimes, as Madam has very rightly brought out, things are moving in right direction.

TEHELKA: Okay. 

JAYA JAITLY: And also, you know what it is. I have no…I will not have any direct this thing. I would only request Sahib's office [George Fernandes] that somebody is not being considered even. So please send a word down that if anybody is fairly offering a good quality thing at a good price, they should also be considered.

TEHELKA: Okay. 

JAYA JAITLY: Now…when that happens, we don't want anybody to feel that anybody has any extra interest.

MAJ. GEN. MURGAI: That's true. 

JAYA JAITLY: Because we don't have any extra interest in anybody. We have extra interest in the good quality and good price.

SURENDRA SULEKHA: That's right. 

JAYA JAITLY: In the interest of the nation. So that we'll ensure that they don't neglect you.

TEHELKA: Okay. 

JAYA JAITLY: After that, it's up to you and your product.

TEHELKA: That's all. That's all we're expecting…that's all. 

MAJ. GEN. MURGAI: So let's go?

TEHELKA: That's two lakhs. Two lakhs.[referring to the money Tehelka journalist has handed over].

100

[Jaya Jaitly nods] 

SURENDRA SULEKHA: Thank you very much.

JAYA JAITLY: Thank you very much. 

* * *

After the Jaya Jaitly meeting, Surendra Sulekha and General Murgai wait for their pound of flesh at Murgai's home. Both are expecting Rs. 1 lakh each. While we give Surendra Sulekha his share of the money, for he would be important in the next step of getting the evaluation order issued, we postpone the giving of the money to Murgai.

[Tehelka journalist takes out the money and gives it to Sulekha] 

TEHELKA: Sir, this is one lakh. Count it, that.

SURENDRA SULEKHA: No, it's okay. You will go... 

TEHELKA: I'm sorry that I couldn't able to…train that...he said he'll come at six o'clock. So I waited there. You know that Krishna Saini? We are there? I couldn't able to wire transfer the money. I don't know that how to...you had asked me to bring it in an envelope, so why didn't they allow me to bring the briefcase inside?

SURENDRA SULEKHA: Because of the security reasons...they have cameras and everything... 

TEHELKA: There is no camera inside this.

SURENDRA SULEKHA: We have to be very, very alert. Otherwise you get questioned immediately. 

[Pause] 

MAJ. GEN. MURGAI: You organise your things a bit.

SURENDRA SULEKHA: You should always keep a packet in a packet. Don't give like this. This will impress him. 

[Tehelka journalist puts the money in plastic bag] 

TEHELKA: You are not given...that....

SURENDRA SULEKHA: When you give somebody sweet, no...why do you pack it? 

TEHELKA: Yeah, yeah. 

MAJ. GEN. MURGAI: Now the question is what are they wanting?

TEHELKA: Yeah. Sir, if you will do both, you can do entire thing. I will leave the... 

MAJ. GEN. MURGAI: No, no.

TEHELKA: I will, you know...you know you are telling that. I will leave the... 

101

MAJ. GEN. MURGAI: That is all right. But the point is, you still not understood. Who's got to give the clearance? I feel Choudary is well within his capability to take up the evaluation.

TEHELKA: And he...I told you no, so he need the...some reference for...if…

MAJ. GEN. MURGAI: Reference from where?

TEHELKA: If RM [Raksha Mantri] is... RM will... 

SURENDRA SULEKHA: You give letter of copy of RM. You will get…

TEHELKA: I will give you a copy. 

SURENDRA SULEKHA: That is my job, I will get it. I will get it done.

MAJ.GEN. MURGAI: We will get it done. 

TEHELKA: If that RM will sign that "Go for evaluation", he will do.

SURENDRA SULEKHA: Yes, I will get it done. 

TEHELKA: And he will short-list the company also, he told me.

SURENDRA SULEKHA: No, that is his...that is his... 

MAJ. GEN. MURGAI: That is his.

SURENDRA SULEKHA: I can only talk about this evaluation. 

MAJ. GEN. MURGAI: My dear sir…

SURENDRA SULEKHA: I can only talk.

TEHELKA: One thing I will ask. If I will give letter to Gen. Murgai tomorrow, when you can do?

SURENDRA SULEKHA: Within 10 days. 

* * *

Now, that we know the real face of one of India's ruling political parties, alongwith that of the BJP, let's put the spotlight on to a crucial phase of West End's efforts to bag the HHT order where General Murgai (Retd.) was the lynchpin. He went to Major General Choudary's office and invited him over for dinner to meet a West End representative. Choudary, being under surveillance, was reluctant to come to a five-star hotel. At the dinner in Murgai's house the ice with Choudary was broken. Initially, as in later meetings, General Choudary kept asking for West End's product range so that he could provide a helping hand in a product other than Hand-Held Thermals where things had reached a stage of an impasse as far as West End was concerned. He also accepted a gold chain as a small gift and promised to have a detailed meeting about a week later.

MAJ. GEN. CHOUDARY: Has your company ever participated in defence work?

TEHELKA: No, sir. 

MAJ. GEN. CHOUDARY: Hmm?

102

TEHELKA: No. 

MAJ. GEN. CHOUDARY: They just want to...?

TEHELKA: Just for start. 

MAJ. GEN. CHOUDARY: What is the position of...what's in the deal?

TEHELKA: Sir, that specification and magnification, that I will give you...that I will give you. 

MAJ. GEN. CHOUDARY: Not there?

TEHELKA: Yeah, that I will give you. 

MAJ. GEN. CHOUDARY: Anyway, as I said...this is a no-go case.

TEHELKA: Yeah. 

MAJ. GEN. CHOUDARY: No point going through with it. I believe in total honesty that if somebody asks me for advice, I tell him, "Do this and then do this". Because there is no way you are going to get it.

TEHELKA: Sir, what is the reason? 

MAJ. GEN. CHOUDARY: You see, we have already bought one-third of our requirement on hand-held…from one or two sources.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Right?

TEHELKA: Hmm. 

MAJ. GEN. CHOUDARY: Now this involves...it's not just buying a TV set. It requires tomorrow's maintenance; requires spare parts.

TEHELKA: That is true...quite right. 

MAJ. GEN. CHOUDARY: I can't increase my product range. See, the logistics problems are going to be there. After all this gadget is going to be with us for the next 15 years. Right? The maintenance support for next 15 years is going to be very heavy, when you have four-five items of same product. Same product; four-five different items.

TEHELKA: Okay. I see, I see. 

MAJ. GEN. CHOUDARY: You see, so we have already gone in, and bought all this from them. About 400 odd systems against a requirement of about 1,200.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: You suggest you got something, I will say 'yes' or 'no'.

TEHELKA: It's that Tank-based navigation system. 

MAJ. GEN. CHOUDARY: Hmm?

103

TEHELKA: That tank navigation system. 

MAJ. GEN. CHOUDARY: Yeah?

TEHELKA: You need it?

MAJ. GEN. CHOUDARY: Yes. 

MAJ. GEN. MURGAI: See, I suggest one thing. What you do is, first, you should know your product profile.

TEHELKA: No, that I will show, that I will give you the...product profile and everything. 

TEHELKA: Sir, tank...tank navigation. Tank navigation system you require?

MAJ. GEN. CHOUDARY: See tank navigation system already...HAL [Hindustan Aeronautics Limited], ECIL [Electronics Corporation of India Limited] and BEL [Bharat Electronics Limited] are supposed to do this. 

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Right? So anybody who comes to me, I tell them, "Please go and speak to our officer."

TEHELKA: About T-90 tanks? About T-90? 

MAJ. GEN. CHOUDARY: Whether it is T-90, it is any tank a land navigation system is required.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Now which source we get it…because we give in to our PSUs [Public Sector Undertakings]. They were supposed to have offered it to us for trials two years ago. Unfortunately, the sanctions came in. 

* * *

General Choudary departs with his gift and gives a time to West End for a second meeting next week. Murgai asks whether West End is happy?

MAJ. GEN. MURGAI: So…you are happy with the…?

TEHELKA: Okay, fine. Sir, earlier he was very strict. Like that…like that. 

MAJ. GEN. MURGAI: It has to be. When you want to be…she has to be strict.

Otherwise…

TEHELKA: Then he opened…he accepted my gift also.

MAJ. GEN. MURGAI: Yeah, very good. 

TEHELKA: Sir, this 25,000 [rupees].

104

MAJ. GEN. MURGAI: Okay. That's good 

[Tehelka journalist offers the money] 

TEHELKA: Then I will go to…Sunday I will go to his home.

MAJ.GEN. MURGAI: First he said…

TEHELKA: He will not allow me to turn away like that.

MAJ. GEN. MURGAI: If he doesn't say anything, then how will you let him know? You wouldn't have…. See, I told you one thing…

TEHELKA: Sir, I was not here that time to talk this matter.

MAJ. GEN. MURGAI: Yes. 

TEHELKA: What he said? 

MAJ. GEN. MURGAI: I said, "Yaar, if you want to take it, take it. It's open. Otherwise, let's close the chapter." 

TEHELKA: What he said? 

MAJ. GEN. MURGAI: He said, "Okay, I have taken it." 

TEHELKA: What I've given that small gift, I want to know what his response. Otherwise, bloody he will refuse it. That is confirmed. He will take the money, he will accept it, he will give the order also. Now we need a political…

* * *

At General Choudary's house in Lodi Gardens he explains why it would be a problem to order a trial evaluation for West End's products. First of all, West End hadn't entered the fray when the selections for the trials were taking place. Secondly, Choudary had said 'No' to evaluation trials for a French company called Sagem even though it had come recommended by the Defence Secretary. Sagem, incidentally, has a product far superior to anybody else. General Choudary's dilemma was what reason to show a green signal for West End when very recently he had put his foot down for the evaluation trials of HHTs from other companies. Of course, Choudary also accepts a cash incentive of Rs. 1 lakh with more promised for the future.

TEHELKA: Yes.

MAJ. GEN. CHOUDARY (Using his hands to express himself throughout his talk.): Basic issue is…

TEHELKA: Yeah. 

MAJ. GEN. CHOUDARY: Had you entered into the fray earlier…

TEHELKA: No. 

MAJ. GEN. CHOUDARY: …when we had done the selections? You hadn't. So the basic problem is, when you buy a thing…and along with that thing you also got some sort of technology…

105

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: It is difficult to change your mind.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: See, the Israelis… same gadget you are offering, we have already bought from the Israelis. We have bought about 200 from the Israelis, 200 from the French.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: The French was a kind of a hiccup because of bargaining.

TEHELKA: Okay, okay.

MAJ. GEN. CHOUDARY: But we had already taken a limited technology. That means…technology means, upto component level. And in all electronics if you have the component level technology, you can buy the same components in the world market and fabricate the damn thing.

TEHELKA: Okay. I got it. 

MAJ. GEN. CHOUDARY: It means, the technology is assembling from completely knocked down -CKD.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Which is component level.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Like…you already own 10 cars…and all 10 cars are of same type. And suddenly you want to go in for the 11th from somewhere else, or 11th and 20th from somewhere else…it's a problem. This is the…that's why I said, "Don't talk about this system, talk about something else." What you…what you're….

TEHELKA: Sir, what more we can…(laughs)…Sir, you are not being frank with me. 

MAJ. GEN. CHOUDARY: This is you see…Defence deals are such…lot of paperwork is done beforehand.

TEHELKA: Yeah. 

* * *

Choudary admits there are companies who can provide cheaper and better HHTs than the ones they have evaluated. The general admits that Sagem, with its better technology was vetoed inspite of being recommended by the Defence Secretary. Choudary also asks West End to tie-up with the public sector ECIL.

MAJ. GEN. CHOUDARY: But, as I know that this particular Gen 3 technology, Sagem is far superior to anybody in the world. See there are…I don't know if you understand technicalities, this is based on an infra-red…

TEHELKA: Oh, yeah, okay, yeah, yeah. 

* * *

106

MAJ. GEN. CHOUDARY: I have said, "No", to Sagem. In fact, Sagem had approached the Defence Secretary. Defence Secretary was keen that we trial evaluate. Army put its foot down. Now, when we do that, it is recorded in the file. How can I take up a case for your company?

TEHELKA: No…no, sir, if I will now recommend from the ministry. From…

MAJ. GEN. CHOUDARY (interrupting): No, no, even if the ministry says. They will ask me, "You have said 'no' to him then, why are you saying 'yes' now?" You see, there are questions asked. There's…that's why I said, this product, please don't talk. Have you got something else where I can advice you ? 

* * *

MAJ. GEN. CHOUDARY: The first thing is…show me your brochure and get it evaluated by me. If it fits the bill, I'll advice you to go to ECIL with your offer because they have already got other offers.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: And ECIL is then, is to give me the full product. You see, you're getting your product through them. That product has to be integrated into the tank or the... All that ECIL will take care of. And it will offer as…as a collaborated product of theirs.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: Because the kind of navigation system required today is not available. We would have bought it two years ago had the nuclear blasts [Pokhran] not taken place.

TEHELKA: Yeah, yeah, yeah…

* * *

MAJ. GEN. CHOUDARY: (nodding): These defence purchases are so intricate, so many people…people looking…

TEHELKA: Yeah, exactly sir, that is true thing. That is very true. 

MAJ. GEN. CHOUDARY: Unless…that's what I am saying. You look after the minister; I get my stuff. 

TEHELKA: Yeah, yeah. 

MAJ. GEN. CHOUDARY: Something comes to the Army. You look after the minister or whomever you want….

TEHELKA: Yeah. 

* * *

General Choudary explains further how the technical evaluation process goes and at what stage the commission comes in. He also takes his gift.

MAJ. GEN. CHOUDARY: Initial job is mine. To put everybody who's approached or who has…whom I know is capable, I put him in the play. 

TEHELKA: Okay. 

107

MAJ. GEN. CHOUDARY: Then we ask them for technical proposals.

TEHELKA: Okay, okay, okay. 

MAJ. GEN. CHOUDARY: Full specifications, what are the capabilities of your system, and then see is it matching with ours.

TEHELKA: Okay. 

MAJ. GEN. CHOUDARY: What we need. Out of 10, five will be weeded out when we take the evaluation. Without even seeing the equipment, based on data that is provided. 

[Tehelka journalist coughs] 

MAJ. GEN. CHOUDARY: Balance five people, after technical evaluation, are asked, "Bring your stuff for trials immediately on no-cost basis".

TEHELKA: Hmm. 

MAJ. GEN. CHOUDARY: Then you carry your trial and evaluation. In the trials, out of five, three may get weeded out; only two may come out winners.

TEHELKA: In short-list? 

MAJ. GEN. CHOUDARY (nodding): Till that is my job. After that, between the two, who gets it is the ministry's job. That's on commission [Rubs his index finger and thumb to indicate that money is involved at this 'commission' stage.] 

TEHELKA: Okay. In the bureaucrat, what…what they will play the role? See, because major role will play the user, that's you…your side.

MAJ. GEN. CHOUDARY: That is my side. That's what I said. 

TEHELKA: Now…not…now, not in the bureaucratic or politicians' side? 

[Choudary shakes his head] 

TEHELKA: Okay. 

[Tehelka journalist slaps his thigh in a show of excitement] 

MAJ. GEN. CHOUDARY: Thereafter, it's entirely with the ministry to call for the commercial…

TEHELKA: And who will decide the PNC and everything?

MAJ. GEN. CHOUDARY: I am a member of that too. To advice… but it is generally chaired by the joint secretary of the ministry. 

TEHELKA: Okay, sir it's right information. Now I got the right information.

MAJ. GEN. CHOUDARY: No one individual can assure you.

TEHELKA: Yeah. 

108

TEHELKA: I can give a…small gift for you?

MAJ. GEN. CHOUDARY (smiles): You already gave me a…

TEHELKA: No, sir. This is my…I am not saying that anything…haan? 

[Tehelka journalist turns around and opens his briefcase. He takes out a wad of rupees and closes the briefcase.] 

TEHELKA (getting up to hand the money to Gen. Choudary): Sir, one lakh.

MAJ. GEN. CHOUDARY: (Expressing surprise but accepting the money anyway): Money? 

[He puts money in the front right pocket of his trousers.]

MAJ. GEN. CHOUDARY: This is not…

TEHELKA: No, this is my…my…my…happiness. 

MAJ. GEN. CHOUDARY: But, please remember, there is no one individual can help you in this.

TEHELKA: Yes, sir. 

MAJ. GEN. CHOUDARY: We can only put in…put in our bit.

TEHELKA: Okay. 

[Pause] 

A breather here before we go for the sprint. Let's get an overview of the profession of defence middlemen in India, from Colonel Berry who in his nine years of 'liaisoning' has worked with all the big players.

TEHELKA: You've been in the liaisoning field for how long?

LT.COL. BERRY: For about nine years now. 

TEHELKA: Nine years?

LT.COL. BERRY: Yeah. 

TEHELKA: So where all…you just take me through those nine years? 

LT.COL. BERRY: See, I'll tell you…

TEHELKA: And the biggest deals that you have done. 

LT.COL. BERRY: Yeah, yeah, I'll just do a …

TEHELKA: Briefly, yeah…

LT.COL. BERRY: Basically…this is the main thing…I mean…

TEHELKA: Yeah.

109

LT.COL. BERRY: …how we are going to proceed…

TEHELKA: Yeah.

LT.COL. BERRY: …and which are the ways and means of doing the things.

TEHELKA: Okay. 

LT.COL. BERRY: See, basically, initially I started with Mr. Vipin Khanna, whom you wanted to meet also. 

TEHELKA: Okay. Khanna, yeah, yeah. 

LT.COL. BERRY: Yeah. Because there are only three-four names which rotate around here. Because it is very secretive and, you know, one has to be very, very cautious also in this field. Mr. Vipin Khanna, Chaudhary and Nanda. These are the three names which you'll always hear. 

TEHELKA: Mathew was telling about a Mr. Sahni. 

LT.COL. BERRY: Hmm? Listen. See, these are first rung. I'm talking about the first rung. First rung is these three. Then after that second rung, you know…

TEHELKA: Vipin Khanna, Chaudhury and…?

LT.COL. BERRY: …and…and Suresh Nanda. 

TEHELKA: Okay. 

LT.COL. BERRY: Yeah. And then in the second rung, you know, people like Sahni, Gupta, even R.K. Gupta's brother. Those guys are there. 

TEHELKA: Okay. 

LT.COL. BERRY: There is a Pichoria also there. There is…there are plenty you know just trying to make their…

TEHELKA: Okay. 

LT.COL. BERRY: …I mean at least giving an impression as if they are number one and all that. So this is that. So I started my thing basically with Mr. Vipin Khanna.

TEHELKA: Okay. 

LT. COL. BERRY: And because I had the background of electronic warfare, electronics, software electronics, and they are highly technical. Plus I was in the field…in the Ministry of Defence I was in DGQA. That is very important factor for any procurement. You must already be knowing all these things…

TEHELKA: Yeah. 

LT.COL. BERRY: …very well aware. So there I was with him for about almost three years. A little one month, month-and-a-half. And there I had introduced Israel, in particular. 

TEHELKA: Okay. Which company was this? 

110

LT. COL. BERRY: Tadiran, Elistra, Symtech, Elbit…god knows.

TEHELKA: Through Mr. Khanna? 

LT. COL. BERRY: Yeah. 

TEHELKA: He was the main dealer? 

LT. COL. BERRY: (continuing): …see, now…after that is important. So I got myself…you know…once you are just working for agents, it's a different set-up because…. Agents, what they do is, they normally try to go for…the big agents I'm talking about….

TEHELKA: It's all illegal, right? 

LT. COL. BERRY: Hmm? 

TEHELKA: It's all…middlemen and all…illegal. 

LT. COL. BERRY: It's all illegal. 

TEHELKA: Okay. 

LT. COL. BERRY: Because legally toh you are not allowed to do…

TEHELKA: Yeah. 

LT. COL. BERRY: …have at all. 

TEHELKA: Okay, then? 

LT. COL. BERRY: You are fully aware. 

TEHELKA: Yeah, I am. 

LT. COL. BERRY: But what they used to do is they get into three-four companies. You give to one politician and get three-four companies signed with you directly. So you're loyal to nobody. 

TEHELKA: Okay. 

* * *

To round up things now. To get an invitation for field trials for West End HHTs it was important, as mentioned earlier, that Major General Choudary was on West End's side, which he was. What Choudary needed was some direction from the ministry urging him to go forward in the case of West End as he had earlier blocked the evaluation for many other companies saying it wasn't needed anymore. Next, is our meeting with Additional Secretary L.M. Mehta, who proved invaluable in giving that cover to Choudary.

MAJ. GEN. MURGAI: Sir, there is one UK-based company. West End International. 

MEHTA: Accha. 

MAJ. GEN. MURGAI: It's a multinational spread over…

111

MEHTA: Hmm hmm

MAJ. GEN. MURGAI: …various countries. 

MEHTA: I see! 

MAJ. GEN. MURGAI: Their basic range is they are making electronic products….

MEHTA: Hmm, hmm. 

MAJ. GEN. MURGAI: …and electronic testimonials…

MEHTA: Hmm hmm. 

MAJ. GEN. MURGAI …rest they have got these night-vision devices. 

MEHTA: Okay. 

MAJ. GEN. MURGAI: Okay. And now they are spreading their tentacles…trying to come over to various countries including India…

MEHTA: Hmm. 

MAJ.GEN. MURGAI: …i.e. they have made a beginning. 

MEHTA: Hmm. 

MAJ. GEN. MURGAI: So, in due course of time they want to…

MEHTA: Hmm. 

MAJ. GEN. MURGAI: …he is representing them. 

[Tehelka Investigative Team member gives his calling card to Mr. L M Mehta] 

TEHELKA: Sir, it is written the liaisoning…but I am not a liaisoning…but I am the chief representative of this company. I am the staff of, I am a employee of this company. 

MEHTA: Hmm, that is good. 

MAJ. GEN. MURGAI: So, he is trying to now carry out a study ki what all we can portray it in the commercial market. And, whatever we could bid, tell them as the requirement occurs. That he carrying out a study and…the…

MEHTA: What is the product range?

TEHELKA: Which one, sir. 

MEHTA: Product range. 

MAJ. GEN. MURGAI: Product range. What all…

TEHELKA: What we have…

112

MEHTA: Yeah. 

TEHELKA: Sir, we have a tank navigation system…

MEHTA: Achha. 

TEHELKA: And that is smart ammunition, and some very typical type of bombs.... 

MEHTA: I see.

TEHELKA: So, a lot of products, we are supplying NATO countries also. 

[Pause] 

MEHTA: So you must remain on their payroll. 

TEHELKA: Yeah. 

MEHTA: You should be employed. 

TEHELKA: Yeah, yeah, yeah. 

MEHTA: This...you are an agent and nobody would allow you. 

TEHELKA: No, I am not a agent. 

[Tehelka journalist laughs] 

MEHTA: Obviously 

TEHELKA: Yeah, yeah, sir. I am a share…

MEHTA [interrupts]: It should be on the records also. 

TEHELKA: Sir, I am a shareholder of the company. 

MEHTA: That's still better. 

MAJ. GEN. MURGAI: Actually, he is not a technical…

TEHELKA [interrupts]: Sir, I don't know any technical things.

MAJ. GEN. MURGAI: So, at the moment…

MEHTA [interrupts]: No, you should acquire some designation like Director.

TEHELKA: Yeah, yeah… like that…

MEHTA: Sales or something, that public relations also…

TEHELKA: Yeah, yeah. 

MEHTA: Because that would give you that the sounding status instead of chief liaison officer.

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TEHELKA: Okay. 

MEHTA: …no, liaison in a way also reflects something…

TEHELKA: Yeah, yeah, yeah, but they don't know that one. They given this kind of…

MEHTA: You can make public relation, sales promotion; there can be so many designation.

TEHELKA: No problem.

Mehta takes his gold chain gift.

[The camera frame moves to L M Mehta and General Murgai. Tehelka journalist gives Murgai a box in which there is a gold chain to present to Mehta.] 

MEHTA: No, no, no, no, nahin, nahin.

MAJ.GEN. MURGAI: Sir, this is nothing. 

MEHTA: What shall I do with? This.

MAJ.GEN. MURGAI: Sir, there is nothing sir. 

[Murgai places the box under the table.] 

MEHTA: Please, no. 

[Mehta picks up the box] 

MAJ.GEN. MURGAI: Should we leave? Sir, this is…

MEHTA: Please keep this back. 

[Camera shift to give the full view of the sitting room.] 

TEHELKA: No, no, please.

MEHTA: No, no, it is okay.

TEHELKA: Nothing, sir.

MEHTA: Nahin, nahin this is not good. 

* * *

The above was the first meeting with Mehta. Meanwhile, very interestingly, Gen Choudary rang a representative of West End asking for some help in lobbying with a CVC official who was examining a corruption case against him. In this last meeting with Choudary, he relents more or less. West End tells him he will get five or six lakh rupees initially.

MAJ.GEN.CHOUDARY: One thing you should be clear in your mind. As I explained to you last time, this is not a one-man show. 

114

TEHELKA: Yes sir. That I know very well sir… 

MAJ.GEN.CHOUDARY: So what you must do is, start contacting somebody from the ministry. You might be having contacts there in his office. From then you start pushing things to us. You see results in even if you are not there. Works are very…. See if you have already contacted the minister There is no need . 

TEHELKA: No need right? That… that is what I am asking, that is what I am asking. Already I have met Jaya Jaitly and Rajiv Goba.

MAJ.GEN.CHOUDARY: See if you are already there, Then… then there is no need for you to go elsewhere. 

TEHELKA: There is no need. Right? This I want to… I want to know from you, sir.MAJ.GEN.CHOUDARY:: They are the main people. 

MAJ.GEN.CHOUDARY: No problem…I will approach you and say this is the response. 

TEHELKA: Okay… all right. There is no problem. I have already given the message today. They can send five or six [lakh] . Okay Sir, I am moving. 

[Both get up and start moving. Tehelka journalist follows Choudary who shows him the way to the gate. Both exchange goodbyes] 

* * *

Surendra Sulekha makes a demand of Rs 10 lakh to get the evaluation letter issued from Gen Choudary little knowing about our own lobbying efforts with the General. General Murgai explains to West End about Surendra Singh's new demand.

MAJ.GEN.MURGAI: But, Now let us see like this. On Saturday, Surinder Singh was there. 

TEHELKA: Hmm. 

MAJ.GEN.MURGAI: … and he was trying to contact me, I was not available…

TEHELKA: I don't have his number.

MAJ.GEN.MURGAI: No, no. He was trying to contact me. I was not available. And then around 5 o'clock when I came home, I came to know that he was there in Delhi. Then I spoke to him. He said he was leaving this same evening. And he made it very clear. He said, "Unless the payment is made in advance, I will not do the job." And secondly, he said that he has already paid 3 more lakhs to Jaya Jaitly. Okay? That's what he told me.

TEHELKA: He is lying

MAJ.GEN.MURGAI: No, no, see what…

TEHELKA: This entire picture you know that he created a hoax. 

MAJ.GEN.MURGAI: Just a minute. He said and he said, now I will charge 10 lakhs... 

TEHELKA: Hmm. 

115

MAJ.GEN.MURGAI [continuing]: ...In total and get the letter reissued in 24 hours. Okay? Then I told him that , "Look, you have a word with Samuel ." That is the reason I ring you up on mobile. You picked up and switched off. Okay? Then I told him. "Surinder," I said, "He has switched off the mobile. I'm not able to contact him." So he said, "Okay, then I am leaving for Kanpur. You can talk to him. If he pays 10 lakhs…." He says three he has paid from his own side for they were in need of funds. He wants to recover. Okay? And the payment will be in cash. That is exactly what he told me. The reason is…that is the reason I said, "He speaks to me, I speak to you. It is better that we all sit together. Then we have a direct talk." That is the reason I tried to contact you. 

TEHELKA: He told me that what was the equation on that day.

MAJ.GEN.MURGAI (interrupts): Accha, now another…

TEHELKA (continues): What was the equation?

MAJ GEN MURGAI: Another thing he told me. He said, even the previous payment, he has not made for you. 

MAJ GEN MURGAI: The matter is finished. Now the question arises, leaving aside him, who is the person who can give the evaluation letter ? Let's understand it. Amongst ourselves, who do you think who can issue the letter? 

TEHELKA: He should…letter will issue…General Choudary. I met Gen Choudary day before yesterday.

MAJ.GEN.MURGAI: Okay. 

* * *

TEHELKA : Will it go today or tomorrow to L M Mehta ?

MAJ.GEN.MURGAI: I'll talk to him. Sit down.

TEHELKA: All right. 

[Murgai leaves the room] 

[Murgai's voice is heard] 

MAJ.GEN. MURGAI: What is L M Mehta's office number? 

TEHELKA: I don't know. 

[Murgai's voice is heard in the background] 

[Tehelka journalists mobile rings. He takes call.] 

[Tehelka journalist walks around the room. Murgai returns] 

MAJ GEN MURGAI: End of the …, he's having …

TEHELKA: Okay. 

MAJ GEN MURGAI: Then I'll fix up. 

116

TEHELKA: When you need the car? 

MAJ GEN MURGAI: Car? 

TEHELKA: For one hour? 

MAJ GEN MURGAI: No, how are you…. You tell me how are you placed?

TEHELKA: That…that is…you need not worry. After one hour you need the car? 

MAJ GEN MURGAI: I thought that if you … if you can spare,it then I can…go and meet…

TEHELKA: Okay. Then after one hour I will give you the car. The car will be here. 

[Tehelka journalist picks up the briefcase and prepares to leave.] 

MAJOR GENERAL MURGAI: Okay, all right. 

[Tehelka journalist walks out, Murgai accompanies him] 

TEHELKA: Sir, please tell Mr…L.M. Mehta that clear that financial equation. Tell Mr Mehta that clear the financial equation. 

MAJ GEN MURGAI: The what?.

TEHELKA: That we will like that… like this. That financial equation. If he will write that letter, we will give like that. 

MAJ GEN MURGAI: Hmm!

TEHELKA: We will give like that…finally…to Mr Mehta. 

MAJ GEN MURGAI: No, I will tell him that this much we will give you.

[Tehelka journalist walks out the main gate after promising that he will send the car after one hour] 

Additional Secretary L.M. Mehta issued a letter to Major General Choudary in the second week of January [2001]. He asked for Rs 2 lakh in cash. He was paid Rs 50,000 by Major General Murgai as advance in his office and the rest was promised upon receipt of the letter. Of course, we just planned to collect the letter and run. 

You see we couldn't go any further. We couldn't produce hand-held thermal cameras and submit them for trials. 

Major General Choudary issued a trial evaluation order in the third week of January. It was a 26-page order. General Murgai collected it for us. Mehta's dilemma was that he couldn't organize an evaluation letter just for West End and had to include 3-4 more companies. He did that. 

In the meantime around January 10 our cover had already blown with Samta Party treasurer R.K. Jain and BJP President Bangaru Laxman. Both had been expecting money and were desperately looking for West End representatives. We kept our fingers crossed so that our cover remained with General Murgai for some more time. 

117

But it was not to be. We delayed by 24 hours our visit to General Murgai to collect the letter. Our cover blew. For three days we tried to ambush General Murgai at his home. On each of those ocassions the cars of Surendra Singh and General Choudhary were parked outside. The trio have been in constant consultation to plan a damage limitation exercise. 

It's been nearly two months since the letter was issued. We are told they have doctored the files. We hope they haven't been able to doctore the despatch dates. 

Anyways, if the Military Intelligence interrogates the office staff of General Choudary they shall have the truth.

BRIBES PAID DURING THE COURSE OF OPERATION WEST END 

Brig. Anil Sehgal Director, Directorate General of Ordnance and Supply (DGOS) Date: 5.9.2000 Place: Arjun Vihar 

20,000.00

P. Sashi Senior Section Officer (DGOS), Ministry of Defence Date: 6.9.2000 Place: India Gate 

2,000.00

Brig. Anil Sehgal Date: 21.9.2000

20,000.00

P. Sashi Date: 25.9.2000 Place: Hotel Orchid 

20,000.00

Lt. Colonel Sayal (Retd.) Defence middleman, formerly with Directorate General of Ordnance and Supply Date: 6.10.2000 Place: Hotel Orchid 

10,000.00

Suresh Date: 10.10.2000 Place: His house 

7,000.00

Lt. Colonel Sayal (Retd.) Date: 18.10.2000 Place: DSOI 

5,000.00

Maj. Gen. S.P. Murgai (Retd.) Additional Director-General, Quality Assurance Date: 19.10.2000 Place: His house 

20,000.00

Lt. Colonel Sayal (Retd.) Date: 20.10.2000

15,000.00

P. Sashi Date: 1.11.2000

10,000.00

118

Place: His house

Lt. Colonel Sayal (Retd.) Date:1.11.2000

10,000.00

Lt. Colonel Sayal (Retd.) Date: 2.11.2000

10,000.00

Raghupati Date: 4.11.2000

16,000.00

Mr. Narendra Singh Date: 4.11.2000 Place: B-21, DIZ, CP

10,000.00

Brig. Iqbal Singh Prospective Procurement Officer (PPO) Date: 5.11.2000 Place: 1015, Park Hotel

50,000.00

Lt. Colonel Sayal (Retd.) Date: 5.11.2000 Place: Park Hotel

20,000.00

Lt. Colonel Sayal (Retd.) Date: 7.11.2000 Place: Connaught Place

10,000.00

P. Sashi Date: 18.11.2000 Place: His house

20,000.00

Mr. H.C. Pant Deputy Secretary, Ministry of Defence  Date: 22.11.2000 Place: Lodhi Road

20,000.00

Mr. H.C. Pant Date: 25.11.2000 Place: C-6, Qutab Institutional Area

20,000.00

Mr. H.C. Pant Date: 28.11.2000 Place: Inside the car

10,000.00

Mr.L.N.Mehta Additional Defence Secretary, IAS  Date:24.12.2000 Place: Chanakya Puri

GoldChain

Maj. Gen. P.S.K. Choudary Additional Director General, Weapons and Equipment (ADE,W.E.) Date: 24.12.2000 Place: His house

1,00,000.00

Maj. Gen. S.P. Murgai (Retd.) Date: 24.12.2000

25,000.00

119

Place: His house

Maj. Gen. S.P. Murgai (Retd.) Date: 25.12.2000 Place: His house

25,000.00

Mr. Surendra Singh Sulekha Industrialist from Kanpur  Date:28.12.2000 Place: Murgai's House

1,00,000.00

Ms. Jaya Jaitly President, Samata Party  Date: 28.21.2000 Place: George Fernandes' residence

2,00,000.00

Maj. Gen. S.P. Murgai (Retd.) Date: 29.12.2000 Place: His house

20,000.00

Mr. R.K. Jain Defence middleman; National Treasurer, Samata Party  Date: 3.1.2001 Place: Akashdeep Bldg.

50,000.00

Maj. Gen. S.P. Murgai (Retd.) Date: 8.1.2001 (for L.M.Mehta) Place: Murgai's house

50,000.00

Mr. Bangaru Laxman National President, Bharatiya Janata Party  Date: 5.1.2001 Place: At his residence

 1,00,000.00

Raju Venkatesh Date: 23.12.2000 Place: Bangaru's residence

 10,000.00

Maj. Gen. P.S.K. Choudary Date: 16.12.2000 Place: Murgai's house

Gold Chain

Mr. H.C.Pant Date: 18.12.2000

10,000.00

TOTAL: 10,08,000.00

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