New Delhi/Chandigarh: India moved a step closer to scrapping the deal to buy 12 AgustaWestland helicopters, with the Ministry of Defence (MoD) sending a notice to Italian defence major Finmeccanica, asking if it had violated clauses of the contract by giving bribes of Rs 300 crore.
“The defence ministry issued a formal showcause notice to AgustaWestland, seeking cancellation of the contract and taking other actions, according to the terms of the contract,” a defence ministry spokesman said. The company has seven days to reply.
The notice comes a day after the ministry warned of legal action, including invoking the integrity pact that provides for cancellation of the contract if bribes were paid, and recovery of the money paid. India has received three of the 12 helicopters and paid up to 30 per cent of the Rs 3,600-crore deal.
Finance Minister P Chidambaram, and other ministers, will address a press conference tomorrow to detail the steps taken by the government in this matter.
Giuseppe Orsi, the man under whose watch the deal took place and who is now in jail in Italy, today resigned as chairman of Finmeccanica, reports from Milan said.
15/02/13 Business Standard
