Swiss War Materiel and Arms Exports

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Pilatus trainers and corruption allegations in India

Goods category: Special military goods

Swiss air force Pilatus PC-7, Grenchen, 26.06.2010.

CC BY 2.0

On 24 May 2012, India signed a contract with Pilatus for 75 PC-7 MkIIs and a training system. The authorised aircraft were delivered between February 2013 and November 2015. Swiss media valued the order at around 577 million Swiss francs. The offset arrangements included cooperation with Tata Advanced Systems; wings and fuselages for civilian PC-12s were also manufactured in Hyderabad. In June 2017, India’s Central Bureau of Investigation (CBI) began preliminary enquiries into payments to Offset India Solutions, the company of intermediary Sanjay Bhandari. These included two payments totalling around one million Swiss francs in August and October 2010. Further bribery allegations became public in March and June 2019, involving different amounts equivalent to around 43 million and 50 million Swiss francs respectively. In June 2019, the CBI opened a formal investigation. In January 2019, reports citing the Times of India had described a payment of nearly one million Swiss francs and the resumption of talks on maintenance and support. This did not mean that the investigation had concluded. In July 2019, it emerged that India had abandoned the planned purchase of a further 38 aircraft. On 28 February 2025, the UK High Court overturned Sanjay Bhandari’s extradition to India because of human rights risks, particularly the danger of ill-treatment and an unfair trial. The extradition proceedings concerned tax and money-laundering allegations; the decision did not resolve the corruption allegations surrounding the Pilatus aircraft purchase.

Effect of the proposed War Materiel Act revision

In Switzerland, special military goods (unlike in most other countries) are not subject to the War Materiel Act, but to the much weaker Goods Control Act.

Countries

Companies

Time period

Contract in 2012; deliveries in 2013–2015; investigations in 2017–2019; Bhandari extradition decision in 2025

Sources