India will cancel a $750 million deal to buy helicopters from Finmeccanica SpA and blacklist the Italian defence group if bribery allegations are proven, defence minister AK Antony said, as political opponents tried to capitalize on the scandal.
Italian police arrested Finmeccanica's chief executive Giuseppe Orsi on Tuesday for alleged bribes paid to secure the sale of 12 AgustaWestland executive helicopters to the Indian Air Force, when he was head of the Finmeccanica helicopter unit. Orsi's lawyer denied the allegations.
The former head of India's Air Force, SP "Shashi" Tyagi, and three of his cousins are among the Indians named in the arrest warrant for Orsi. All say they are innocent.
AK Antony said he had ordered Central Bureau of Investigation (CBI) to investigate the purchase of the luxury helicopters destined for use by India's political leadership. He said that if the allegations are proven to be true, the company would be blacklisted and those involved punished.
13/02/13 Reuters/Times of India
