CBI counsel K K Venugopal opposed Quattrocchi's plea for quashing a non-bailable arrest warrant against him. Venugopal said that because of Quattrocchi's close links with former prime minister Rajiv Gandhi, he deceived India into buying 400 Bofors guns for Rs 14.37 billion, which included the commission amount.

"This was against government's express policy of not having middlemen in any deal, which was made clear to Bofors by the then Defence Secretary S K Bhatnagar," Venugopal said.

He said that it would make no difference to Quattrocchi if he was denied relief as he was in Malaysia at present. Justifying the red corner notice by Interpol, he said that was the only mode to secure Quattrocchi's presence as he was not responding to anyother means.

Venugopal said the Supreme Court had declined quashing of FIR registered by the CBI in the Bofors case on two counts -- one at the instance of H S Chowdhury and another by Win Chadha. He said that Quattrocchi's role in the deal was clear from the Swiss Bank papers. Venugopal said Quattrocchi's conduct clearly exhibited that he was evading arrest.

Quattrocchi first challenged revealing of names in Swiss courts in response to letters rogatories issued by Indian courts. He fled India within six days of his name being made public as one of the appellants by the Interpol, Venugopal said.

He said that Quattrocchi after receiving the commission amount, transferred it to various accounts situated in Channel islands and Swiss banks to erase trace of the commission route.

He then gave non-existent addresses in Swiss bank accounts (Colony East, New Delhi, India), the CBI counsel said.

"Given the facts and circumstances of the case," Venugopal said, "the court should not quash the arrest warrantsagainst the accused, as CBI for the first time, has been able to establish a link connecting him to A E services and show that he was the direct beneficiary of the commission."

The CBI said that the public servants involved in the deal "knowingly allowed" Quattrocchi to negotiate with various authorities because of his good relationship with the then ruling prime minister.

The arguments will continue tomorrow.