Under the terms of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has provisionally attached movable and immovable property worth a total of Rs. 8.70 crores held in the names of Turbotech Energy Services International Pvt. Ltd. (Turbotech) and Ashok Patni and his family.
A money laundering probe was started by the ED against M/s Rolls Royce and others based on FIRs that the CBI of New Delhi had filed in 2019. The time frame for the offence is from 2000 to 2013.
During the investigation, M/s Rolls Royce admitted that it had violated the integrity pact by paying a commission to Ashok Patni and his associated entities about several purchase orders placed before ONGC, HAL, and GAIL. It also confirmed the payment of a settlement amount of approximately INR 80 Crore to ONGC, HAL, and GAIL against the value of commission/fees paid to Ashok Patni, which are considered the proceeds of Further, an inquiry is being conducted to determine whether or not Rolls Royce has paid commissions by the terms of previous purchase orders or contracts.
Investigations found that M/s Rolls Royce signed agreements with HAL, ONGC, and GAIL for the provision of services and replacement components. As a result of providing sales, logistical support, local business expertise, and strategic advice in violation of the terms and conditions of the Purchase Orders (POs) and Integrity Pact with HAL/ONGC/GAIL, M/s Rolls Royce appointed Ashok Patni, Director of M/s Ashmore Pvt. Ltd., Singapore as a commercial advisor in India. The commission, which was not disclosed before the contract was executed, was paid to Ashok Patni of M/s Ashmore Pvt. Ltd. by M/s Rolls Royce in the case of the supply of spare parts and services.
Investigations also turned up the fact that M/s. Turbotech, an Indian company owned by the Patni family, was hired by M/s. Rolls Royce in India in 2008 to serve as a sales representative and commercial advisor in exchange for commission payments made under false pretences.
It is believed that a portion of the payments made by M/s Rolls Royce to Ashok Patni and his affiliated companies were given as kickbacks to unidentified HAL, ONGC, and GAIL personnel who participated in the procurement process. Investigation into the case is still ongoing.
