India issues show cause notice to AgustaWestland to scrap chopper deal

Initiating the termination of major controversial 12 VVIP helicopters deal signed with Italian firm AgustaWestland, Indian Defence Ministry issued a show cause notice to AgustaWestland.

Fresh reports said, AgustaWestland, the wholly-owned subsidiary of Finmeccanica would have to file a reply over the bribery allegations within seven days as per time limit mentioned by Indian authorities.

“The Ministry of Defence today issued a formal show cause notice to AgustaWestland of UK seeking cancellation of contract and taking other action as per the terms of the contract and the integrity pact,” ministry spokesman Sitanshu Kar told reporters.

Under integrity pact with AgustaWestland, the Ministry threatened that it would cancel the contract or blacklisting if any breach of provision made, sources said.

The legal action came in the wake of allegations that kickbacks to the amount of Rs 362 crore were paid to won the contract in February 2010, following that Italian agencies had arrested Giuseppe Orsi, the CEO of Finmeccanica in Milan on Tuesday, for alleged to have connection with the bribery charges.

Former Air Chief S.P. Tyagi has also been named as accused of being a beneficiary of alleged received kickbacks by his three cousins, but Tyagi denied any wrongdoing.

The entire documents are now in hands of CBI, provided by Ministry ,  is investigating the scandal of the Rs 3,600 crore for supply of 12 three-engine AW-101 helicopters.

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