Money taken out of Q's account: Govt

Govt has admitted before SC that the Italian businessman withdrew money from his account in London on Jan 16.

The Government on Monday disclosed that the money in the two London bank accounts of Italian businessman Ottavio Quattrocchi was withdrawn on January 16.

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Money was withdrawn the day Supreme Court passed the order for ensuring that the funds were not released.

"The money was withdrawn on January 16 itself, the day the Bench had passed the order..." Additional Solicitor General Gopal Subramanian told a Bench comprising Chief Justice YK Sabharwal, Justice CK Thakker and Justice RV Raveendran.

The Bench on January 16 had directed the Centre and the CBI to ensure that the money deposited in Quattrocchi's accounts, who is an accused in the Bofors pay off case, should not be withdrawn.

"...The money could not have remained restrained unless there was an order of restraint de novo (starting from beginning)," CBI said in the affidavit.

The agency and the Government had in December conveyed to the British Crown Prosecution Service that there was no link between the funds in the two accounts and the Bofors payoffs.

Subramanian said that all effort was made by asking the Indian High Commission and Interpol that steps should be taken to comply with the apex court order.

"On January 17 and 18, the CBI requested the Indian High Commission and Interpol London seeking their assistance in ensuring that the orders of the Supreme Court are complied with," the affidavit said.

The court took strong exception to the Government bypassing the Indian court while responding to the CPS on Quattrocchi's account, which was frozen in July 2003.

"When CBI came to the conclusion for attachment to be cancelled, was it not obligatory for it to come to Indian court and then go to CPS," the Bench said referring to the frozen account and the pending case against Quattrocchi.

Reacting quickly to the observations of the Bench, Subramanian said the agency had not taken a position that there was no case to proceed against the Italian businessman, who has been named as one of the accused in the case.

"CBI has also not filed a closure report of the case before the Chief Metropolitan Magistrate," the ASG said.

After the ASG answered queries on the status of the money in two accounts of Quattrocchi, advocate Ajay Agrawal on whose petition the notices were issued to the Centre and the CBI said, "They (Centre and CBI) are misleading entire country".

At this point, the court preferred to adjourn the hearing and asked Agrawal to file a reply within two weeks to the submission made be Government and CBI in the affidavit.

The agency in the affidavit maintained "it did not participate in any collusive action for benefit of any accused person as being alleged".

"CBI attempted to get Quattrocchi extradited but failed," the agency said elaborating the reasons for its failure.

The affidavit said two factors came in the way of CBI. First, the absence of evidence to link the funds in London accounts with the proceeds received by Quattrocchi allegedly through AE Services, and second, the imminent unlikelihood of securing his presence in India for completing the trial.

"Thus, a possible discharge of the funds lying in the accounts of Quattrocchi may well have been inevitable," it said.