The Enforcement Directorate (ED) has provisionally attached movable/immovable properties worth Rs 8.70 crore held in name of Turbotech Energy Services International Pvt. Ltd. (Turbotech), Ashok Patni and family in  a money laundering case against Rolls Royce for violation of integrity pact for various purchase orders placed before PSUs like ONGC, HAL and GAIL.

The ED initiated a money laundering investigation against Rolls Royce and others on the basis of FIRs registered by CBI here in 2019. The period of offence relates to 2000-2013, the ED said. “During the course of investigation, Rolls Royce admitted that it had made commission payments to Ashok Patni and his associated entities in violation of the integrity pact in respect of various purchase orders placed before ONGC, HAL and GAIL and also confirmed the payment of settlement amount approx. INR 80 crore to ONGC, HAL and GAIL against the value of commission/fees paid to Ashok Patni, which are proceeds of crime in this case,” it said in a statement.

Further, investigation to ascertain whether Rolls Royce has made commission payments in other purchase orders/contracts in violation of the terms of contracts or not, is under progress, it said.

The PMLA probe revealed that Rolls Royce entered into agreements with HAL, ONGC and GAIL for supply of spare parts and services.  Rolls Royce appointed Ashok Patni, Director of Aashmore Pvt. Ltd., Singapore as commercial advisor in India for providing sales, logistic support, local business expertise and strategic advice in violation of terms and conditions of Purchase Orders (POs) and Integrity Pact with HAL/ONGC/GAIL, it said.

In case of supply of spare parts and services, Rolls Royce paid commission to Ashok Patni of Aashmore Pvt. Ltd. at the rate of 10 to 11.3 percent of the value of purchase orders, which was not declared prior to execution of contract.

Investigation also revealed that an Indian entity Turbotech owned by Patni family was appointed as sales representative and commercial advisor for Rolls Royce in India in 2008 for making commission payments in garb of sham contracts.

A part of payments made by Rolls Royce to Ashok Patni and his associated companies is suspected to have been paid as kickbacks to unknown officials of HAL, ONGC and GAIL involved in the procurement process. Further investigation in the case is under progress, it added.