CBI charges Abhishek Verma, Rheinmetall official with bribery

NEW DELHI Fri Jun 7, 2013 12:39pm IST

Businessman Abhishek Verma (C) leaves the court after his hearing in New Delhi June 9, 2012. REUTERS/Parivartan Sharma/Files

Businessman Abhishek Verma (C) leaves the court after his hearing in New Delhi June 9, 2012.

Credit: Reuters/Parivartan Sharma/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - The Central Bureau of Investigation (CBI) has filed charges against businessman Abhishek Verma, his wife and an official of Swiss-based arms company Rheinmetall Air Defence (RAD) in connection with allegations that RAD paid bribes to help it avoid being blacklisted in India, officials said on Friday.

The CBI said they had charged Gerhard Hoy, the India representative of Rheinmetall, with bribery, along with Verma and his Romanian-born wife, Anca Neacsu.

Verma and Neacsu are already in custody but police would not say whether they planned to arrest Hoy. Reuters was unable to contact Hoy for comment.

Last year, RAD, a unit of German automotive parts and defence group Rheinmetall AG (RHMG.DE), was placed on a blacklist of arms firms banned from doing business in India - the world's largest arms buyer - following corruption allegations that the company denied.

Police allege that RAD transferred $530,000 to a New York bank account belonging to Ganton Ltd, a Verma-owned U.S.-based company. Verma promised to stall the blacklisting process in exchange for money, according to the police chargesheet filed late on Thursday.

A Rheinmetall spokesman was not available to comment.

India is also investigating corruption accusations against AgustaWestland, a division of Italian defence group Finmeccanica (SIFI.MI), in relation to a 560 million eurohelicopter deal.

(Reporting by Anurag Kotoky; Editing by Nick Macfie)

FILED UNDER:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

ICICI Results

ICICI Results

ICICI sets quarterly record profit as Q3 net rises 14 pct  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage