A court in Delhi recently ordered the release of Christian Michel James from custody in a money-laundering case linked to the alleged AgustaWestland VVIP
helicopter scam. The order, passed on Saturday by special judge Sanjay Jindal, relates to a case filed by Enforcement Directorate (ED). The judge noted that Michel had already spent seven years in custody, which is the maximum sentence prescribed for the offence under the Prevention of Money Laundering Act (PMLA). However, Michel will not be released from jail immediately, as he is also an accused in a separate corruption case being investigated by the Central Bureau of Investigation (CBI). In proceedings earlier on Saturday, the court asked the CBI to file its response to a plea filed by Michel in that case.
Who is Christian Michel?
Michel, a British national, was extradited to India from Dubai in December 2018. Investigators allege he acted as a middleman in a high-value deal to supply helicopters to the Indian government.
The case centres on a 2010 contract worth more than Rs 3,600 crore for the purchase of 12 VVIP helicopters for the Indian Air Force. The contract was awarded to AgustaWestland, the British subsidiary of Italian defence firm Finmeccanica.
The authorities alleged that technical specifications for the helicopters were altered to favour AgustaWestland, including reducing the required service ceiling from 6,000 metres to 4,500 metres. It is claimed that bribes were paid to secure the deal.
The CBI registered a case in March 2013, naming former Indian Air Force chief Air Chief Marshal S P Tyagi (retd), members of his family, and three alleged middlemen — Michel and two Italian nationals, Carlo Gerosa and Guido Haschke — along with several companies.
Alleged Payments and Money Trail
According to the CBI and ED, AgustaWestland earmarked about 70 million euros for so-called “offset” work in India, which investigators allege was largely diverted to pay bribes.
Michel is accused of setting up a Dubai-based firm, Global Services FZE, to receive funds. Investigators claim he was to receive 42 million euros, of which around 30 million euros was allegedly intended as kickbacks. The ED has said that about 24 million euros was paid before the deal was eventually cancelled.
An investigator had told The Indian Express in 2018 that only about 30% of the funds were meant for legitimate work, with the remainder allegedly diverted for bribes. The CBI has alleged that Indian officials received bribes totalling Rs 362 crore.
Michel’s Alleged Role
Authorities say Michel dealt primarily with officials in India’s defence ministry and with politicians, while the other alleged middlemen handled payments to members of the Tyagi family. Italian investigators have previously cited handwritten notes referring to payments using coded terms, though Michel has denied their authenticity.
The ED has also alleged that Michel routed cash payments through intermediaries and was involved in buying and selling properties in Delhi, including a farmhouse in Chhattarpur and a showroom in a high-end shopping mall.
Michel has denied wrongdoing and proceedings in the CBI case are continuing.
