Pilatus trainers and corruption allegations in India
Goods category: Special military goods
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
- SWI swissinfo: Pilatus accused of paying millions to secure Indian defence contract, 26.06.2019
- Pilatus Flugzeugwerke: Unternehmenschronik, Einträge 2009–2012
- WOZ Die Wochenzeitung, 16.07.2020, S. 3: Waffenfabrik Schweiz; Tethys Systems: Umstrittene Rüstungsexporte nach Indien (Jan Jirát und Kaspar Surber; Illustration Marcel Bamert; Mitarbeit Lorenz Naegeli)
- Indisches Verteidigungsministerium / PIB, 27.08.2012: Training aircraft (Vertragsdatum und Lieferplanung)
- Ajai Shukla, Business Standard, 10.11.2015: Pilatus Aircraft completes delivery of 75 trainers
- SWI swissinfo.ch, 14.07.2019: India cancels Pilatus aircraft purchase amid corruption probe
- Times of India, Januar 2019: Govt resumes talks with Swiss firm involved in Bhandari case
- Zofinger Tagblatt, 27.06.2019, S. 20 (zotreg): Weitere Untersuchung in Indien (Livio Brandenberg)
- Tages-Anzeiger, 30.01.2019, S. 13: Pilatus einigt sich mit indischer Regierung (Rita Flubacher; Beikasten: sda)
- watson.ch, 27.03.2019: Pilatus PC-7: Erneute Korruptionsvorwürfe aus Indien (Livio Brandenberg / CH Media)
- WOZ Die Wochenzeitung, 07.05.2015, S. 1: Waffenhandel — Die lukrative Pilatus-Methode (Jan Jirát)
- SWI swissinfo.ch, 17.03.2016: Comment Pilatus tire parti du marché indien et réciproquement (Anand Chandrasekhar)
- High Court of Justice: Sanjay Bhandari v. Government of India, [2025] EWHC 449 (Admin), 28.02.2025 (Urteilskopie in einem US-Supreme-Court-Dossier, Anlage H)