The Federal Court today rejected India's attempt to secure the extradiction of Italian businessman Ottavio Quattrocchi over an arms purchase kickbacks case that has dogged Indian politics for some 16 years, a lawyer said today.

"The Federal Court has unanimously dismissed the appeal," Quattrocchi's counsel Muhammad Shafee Abdullah told AFP .

A three-man bench rejected India's appeal made through Malaysian prosecutors on Wednesday.

"With all things considered, we can only conclude that we are in agreement with the Court of Appeal on its findings. We would therefore, hold that no appeal lies in this court," the Federal Court said.

Muhammad Shafee said Quattrocchi had been informed about the court decision.

"He is excited and relieved it is finally over. He hopes the Indian government will accept the decision in good faith and will not harass him anymore," he said.

The court decision is a major blow to India's attempt to force Quattrocchi to stand trial in the US$1.3 billion Bofors case.

Suing for damage

Quattrocchi, who has been living in Malaysia since the 1990s, had previously said he was a victim of a "politically motivated allegation," and his only crime was being a friend of the former Indian prime minister Rajiv Gandhi.

The scandal ultimately led to the defeat of the Congress party in the 1989 general elections. Rajiv Gandhi was assassinated two years later duing an election campaign.

Muhammad Shafee said Quattrocchi was considering suing the Indian government for damaging his reputation and destroying his business in Malaysia.

Quattrocchi was arrested on Dec 20, 2000 by Malaysian police but was released on bail. Malaysia's lower courts had consistently rejected India's extradiction request. The Italian left for home in December 2002.

"Quattrocchi is free to return to Malaysia. He wants to resume doing business in Malaysia," Muhammad Shafee said. - AFP