Agustawestland VVIP chopper deal cancelled

Free Karma

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MoD finally cracks whip, scraps Agustawestland VVIP chopper deal

India on Wednesday cancelled Rs 3,600-crore VVIP chopper deal with AgustaWestland in view of bribery allegations, Defence Ministry sources told PTI.

The AgustaWestland had earlier told the Defence Ministry that it was not involved in any wrong doing in securing the Rs 3,600 crore contract for supplying 12 VVIP choppers to the Indian Air Force (IAF).

On October 10 last year, the Indian Express had reported that the Defence Ministry was considering going ahead with its plans to cancel the deal by invoking the stringent integrity pact.

As reported, the helicopter firm took recourse to the arbitration process — a lengthy legal process that involves the setting up of a three-member tribunal to decide on contract issues, claiming that the ministry's decision to freeze payments since February was against the provisions of the contract.

There were allegations that over Rs 300 crore in kickbacks were paid to Indian agents for securing the deal in AgustaWestland's favour.

The Anglo-Italian firm has already been issued the final show cause notice for cancellation of the deal and it has time till November 26 to reply to the same.

The show cause notice was issued by the Defence Ministry on October 21 in which it had given 21 days, that is till November 11, to the firm to submit its response. AgustaWestland had sought a meeting with the Ministry and obtained 15 days' more time to reply to the notice.
MoD finally cracks whip, scraps Agustawestland VVIP chopper deal - Indian Express
 

hit&run

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What a waste of resources and reputation. A large chunk of money for bribes is already debited from Tax payer's account.

The desire/acquisition of these machines was brought in motion by Atal Bihari Vajpayee government.
 

SajeevJino

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what about the Completed helicopters and How much we paid for that
 

Armand2REP

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what about the Completed helicopters and How much we paid for that
It was AW that paid bribes so that is money you didn't spend. The rest can be returned in legal action which 45% of the contract had been paid.
 

pkroyal

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Sweet Closure

I was a part of this debate on Timesnow newshour ( Arnab was the anchor)
We were four army officers, one air force officer & Maroof Raza as the defence expert , sometime in March 2013.

I was outnumbered 4 :1 by the Ex lot, all supporting the Govt / ACM Tyagi , hectoring that the GSQR are cast in stone & the requirements once finalized can not be tweaked. My view was & even today is, that we have men of straw in higher positions who will suck up to the Govt of the day for any sop/ 13 pcs of gold, The deal was exorbitant by Indian standards and bribes were paid and the purchase of AW heptr's should be scrapped.
 
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bad news for netas ,they have to travel in ageing Mi-8,17 fleet.:lol::lol:
 

SajeevJino

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Sweet Closure

I was a part of this debate on Timesnow newshour ( Arnab was the anchor)
We were four army officers, one air force officer & Maroof Raza as the defence expert , sometime in March 2013.

I was outnumbered 4 :1 by the Ex lot, all supporting the Govt / ACM Tyagi , hectoring that the GSQR are cast in stone & the requirements once finalized can not be tweaked. My view was & even today is, that we have men of straw in higher positions who will suck up to the Govt of the day for any sop/ 13 pcs of gold, The deal was exorbitant by Indian standards and bribes were paid and the purchase of AW heptr's should be scrapped.
I would like to see the Video of the Debate ..Pls post

and Are you once in the Military
 

hit&run

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I am thinking that cancelling a deal is rather more beneficial for politicians and bureaucrats.

Going by many cancelled deals I am finding it as a very clever booming business which not only avoids further scrutiny in media, by courts and people but it wraps up all the mess and wrong doing in one go with no persuasion whatsoever to bring back the wealth lost in bribes and favors.
 

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VVIP chopper scam: India to recover €250 million - The Times of India

NEW DELHI: Exuding confidence that India will not lose any money in the Rs 3,546-crore contract for 12 VVIP helicopters that was scrapped on Wednesday, the defence ministry has begun the process to "encash" the bank guarantees provided by AgustaWestland in the deal.

MoD officials on Thursday said the government was also prepared to deal with arbitration if it came to that, even though the cancellation of the deal because of AgustaWestland's "blatant violation" of the pre-contract integrity pact did not fall under its purview.

There are "enough safeguards" built into the integrity pact and the contract inked with AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica, in February 2010 to "protect India's interests" and impose "punitive damages" on the company, said officials.

The MoD says its case is "strong" since there is "irrefutable proof" in the documents submitted in the Italian court — and obtained by Indian authorities — to show middlemen were used and kickbacks were paid in the deal.

The MoD in February last year, after the arrest of the then Finmeccanica CEO Giuseppe Orsi in Italy, had frozen all further payments to AgustaWestland. This was done even though only three of the 12 AW-101 helicopters had been delivered by then, with around 45% of the total contract value of 556.26 million euros being already paid to the company.

AgustaWestland had submitted two bank guarantees to match the payments —one advance of 15% and another of 30% — as well as "5% earnest money" and "5% performance bond" as part of the integrity pact. "These add up to over 250 million euros," said an official.

The violation of the integrity pact entitles the "buyer" to take action against the "seller"-like forfeiture of the earnest money, performance bond, cancellation of the contract concerned and other contracts without any compensation and recovery of all sums already paid with interest.

"The integrity pact also specifies the vendor will return the payments made to it, with a 2% interest rate over LIBOR (London Interbank Offered Rate), if its provisions are violated rendering the entire contract null and void. The company can also be debarred or blacklisted for a minimum period of five years, which is extendable," said an official.

This is the second time the MoD is invoking the integrity pact's penal provisions. In 2012, it had for the first time cashed the Rs 224 crore bank guarantee given in a contract by Israeli Military Industries, one of six armament companies blacklisted for 10 years in connection with the corruption scandal against former Ordnance Factory Board chairman Sudipto Ghosh.

The MoD on Wednesday had also nominated former Supreme Court judge BP Jeevan Reddy as its arbitrator in the case "as a measure of abundant precaution" after AgustaWestland sought to invoke the arbitration clause by naming another former Supreme Court judge, B N Srikrishna, as its representative.

As per MoD's defence procurement procedure (DPP), the arbitration proceeding has to be held in New Delhi, with one arbitrator each being nominated by the buyer and seller. The third, who shall not be a citizen of domicile of the country of either of the parties, would be the neutral one.
Augusta has said that they have done nothing wrong.

Also Augusta will not be blacklisted by govt. India Opts Not to Blacklist AgustaWestland | Defense News | defensenews.com

I read somewhere that blacklisting companies is affecting us badly as it keeps narrowing the companies from where we can buy stuff from, since these kickbacks and so forth are a part of nearly every company that deals in the sector
 
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‘Target’ closest advisers of Sonia Gandhi for VVIP chopper deal, key middleman told AgustaWestland | The Indian Express

New Delhi | February 01, 2014 03:06

In a note that Italian prosecutors have produced in court to allege the vital role played by middleman Christian Michel in fixing the VVIP chopper deal, the British 'consultant' has told top AgustaWestland officials to 'target' the closest advisers for UPA chairperson Sonia Gandhi for the contract.

The March 2008 note, which has been sent by the elusive Christian Michel to Peter Hulett, the then Head of Region, Govt Sales at the AgustaWestland India office, is one of the many documents that Italian investigators seized from the office of Switzerland based middleman Guido Haschke who is currently facing trial in the case of alleged 51 million euro kickbacks generated in the Indian VVIP chopper deal.
 

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Here is an online version of the same article:

Here is the card that could make the glowing match between the Indian government and ' Italy . On the one hand the destiny of our marines, Massimiliano La Torre and Salvatore Girone . On the other hand, according to a document in the file of the Prosecutor of Busto Arsizio , there are politicians in India who took millions in bribes from Finmeccanica for the job helicopters Agusta in 2010. The letter that could complicate relations between the two countries publish the next and was found in the villa on Lake Lugano in the Italian consultant resident in Switzerland, Guido Ralph Haschke , accused of corruption along with the former president of Finmeccanica Giusppe Bears and other consultants and managers, on charges of having paid € 30 million in bribes to public officials to promote Indian Agusta Westland in the race for the job of AW101 helicopters. When in April 2012 entered into his house, investigators Italian and Swiss Haschke feigned an illness and collapsed on his bed. Underneath was a suitcase full of documents that the consultant Piedmontese origin had left there, convinced that his Swiss citizenship was a shield against the intrusiveness of the police NOE led by Sergio De Caprio , aka Last, and pm Neapolitan Vincenzo Piscitelli and Henry John Woodcock .

Among the papers of the case there was a letter that, after the transition to competence survey from Naples in Busto Arsizio, the prosecutor Eugenio Fusco has studied and learned to make better coordinate it with a handwritten note from the same Haschke, he said dictation of his coindagato Christian Mitchell , with a list of the abbreviations of the names or roles of the recipients of bribes in India. Thursday, January 9th was going to Haschke-examination by the defense and the term pm Fusco has dropped three cards: the letter, handwritten note and a photo of Sonia Gandhi with his main collaborator Ahmed Patel . If the trio of Fusco, reproduced in the montage, it was aces or two of spades will tell only the Court at the end of the trial.

The first paper fell from pm January 9, is in English and reads: "March 15, 2008. For the attention of Mr. Peter Hulett (sales manager of AgustaWestland in India Ed.) Dear Peter, because Mrs. Gandhi is the driving force behind the VIP (ie the elicoitteri prepared to transport the Indian authorities that they had to be purchased by the government paying to Agusta 556 million Ed), she will no longer fly with the MI-8 (the old Russian helicopter fleet governmental Sonia Gandhi used and still use a few Indian personalities, Ed.) Mrs. Gandhi and his close associates are the people to whom the ' High Commissioner (Ambassador of Great Britain: Agusta Westland is also British, En) should aim. " After this reference to Sonia Gandhi as the "driving force" followed by the list of public figures to put in the viewfinder diplomat, at the request of Agusta.

The letter would not be embarrassing if it were not for the petitioner: Mitchell has been involved, according to the prosecutor, the payment of bribes and is now quiet in Dubai . The list is impressive: 1) Manmonah Singh (Prime Minister of India, En), 2) Ahmed Patel (political secretary of Sonia Gandhi Ed), 3) Pranab Mukherjee (President of India in 2012, in 2008 foreign minister Ed) 4) M. Veerappa Moily (Minister of Energy, En) 5) Oscar Fernandes (Minister of Transport, En), 6) MK Narayanan (Governor of Bengal, Ed); 7) Vinay Singh (Chief of the Indian Railways, Ed.) The list of personalities to suggest ambassador ends with an abrupt "Christian greetings." The Fusco pm, after having shown the letter with the name of Sonia Gandhi and Ahmed Patel, his collaborator narrow, January 9, he dropped the second card: the list of bribes, already identified in a previous hearing last December but not connected to the second document in that forum (AP was thought to be Popular Alliance , the name of the party).

The list, written in ink by Haschke, dictation Mitchell according to the story of the Swiss mediator , is divided into four parts, each with a code corresponding to a category of corrupt officials. AF stands for Air Force , 6 million; BUR , ie bureaucrats who should be 8.4 million, then the POL , ie politicians, to which must be 6 million of which € 3 million to a mysterious AP . Fusco puts under the noses of the two documents Haschke, "Dr. Haschke, but according to her, the AP of three million referenced in the memo Mitchell manuscript is Ahmed Patel's letter ? ". Haschke replies: "I too would come to his own conclusions, but to me Mitchell did not say and I do not know." The prosecutor shows one of several photos of Patel next to Sonia Gandhi. And who is required to Haschke Patel. The Swiss-Italian insists: "I only know Sonia Gandhi." The legal representatives of the Government of India are present in the audience jumped on the chair.

On January 10, the Indian newspapers there are two news. The first, published for example by ' Indian Express that follows best Italian media the process of Bust, was the record of the interrogation of Fusco on stacks of 3 million, of AP, the collaborator of Sonia Gandhi and the letter he quoted. On the same day appears on the Indian newspapers reported that the families of our cold riflemen imprisoned in India for two years: "The decision whether or not to apply the death penalty will be assessed by the Indian government within two or three days," was filter that day the Minister of India, Sushil Shinde Kamar . Italian newspapers such as Free , spoke of "sudden change of scenery: only yesterday, Thursday, January 9, the Minister of Foreign Affairs, Salman Khurshid , had ruled out once again the application of capital punishment to the two Italian soldiers accused of murder of two fishermen. "

The feeling is clear that the two criminal cases , one against the marines in India and one from which could emerge representatives (currently unknown) of Indian politics who would take bribes , events are crossed. The strangeness of the two stories, if it concerns together, they seem to make more sense. The Indian government has frozen the order that would be won according to the prosecutor Fusco thanks to bribes by Agusta but it does filter out the idea of arbitration , known to be the prelude to a soft close. Also in the trial of the marines will remain in a legal limbo. The prosecution has not yet formulated a count of indictment and a matter now closed, such as the death penalty, has been reopened to surprise on January 10, after the interrogation of Fusco Haschke to Ahmed Patel, and yesterday was again throw it in a drawer by the Indian government. In spring there are elections in India, Sonia Gandhi's party could be in trouble because of the story of the helicopters . And this is not good news for the marines.
Elicotteri Augusta, mazzette italiane a politici indiani. Sullo sfondo il caso marò - Il Fatto Quotidiano

This paper seems to link the italian marines cae to the chopper deal, and also throw a random bunch of allegations (based of their perceptions of who takes bribes), and their list contains basically the whole senior establishment of the govt. But the thing is Anyone could make a list to "target" people. Whether the bribe was offered and accepted needs to be proven.
 

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Here is an online version of the same article:


Elicotteri Augusta, mazzette italiane a politici indiani. Sullo sfondo il caso marò - Il Fatto Quotidiano

This paper seems to link the italian marines cae to the chopper deal, and also throw a random bunch of allegations (based of their perceptions of who takes bribes), and their list contains basically the whole senior establishment of the govt. But the thing is Anyone could make a list to "target" people. Whether the bribe was offered and accepted needs to be proven.

Its written CVC and Auditor General


Wtf---these 2 institutions also gone!!!!!!!!
 

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Defence Minister says no proof of Sonia Gandhi link in AgustaWestland chopper deal | NDTV.com

Amid angry shouts alleging corruption within the government, Defence Minister AK Antony today told Parliament there was no proof of Congress president Sonia Gandhi's alleged link to the VVIP chopper scam, which involves the now-cancelled deal to buy 12 luxury helicopters from defence manufacturer AgustaWestland.

A document that surfaced days ago shows that a middleman central to the deal asked his contact in India to target the aides of Sonia Gandhi and the Prime Minister to bag the contract.

"The authencity of these documents is not proved and the case still in progress in an Italian court," said the Defence Minister. He also said another middleman, Guido Haschke, had said t hat the reference to "family" in one of the seized documents was to the family of former air chief SP Tyagi.

The CBI has alleged that the forner chief was among those who accepted bribes from Finmeccanica which used a maze of companies in counties like Mauritius to route payments to officers.

The opposition says the scandal proves that the government has been operating in a continuum of indefatigable corruption.

The faxed and unsigned note that allegedly mentions Mrs Gandhi was produced in an Italian court recently where the Italian boss of AgustaWestland's parent company Finmeccanica was arrested last February over the case.

Christen Michel was one of the middlemen for the deal, prosecutors in Italy have alleged. Mr Michel was arrested in October. He allegedly faxed a contact at AgustaWestland's Delhi office in March, 2008, asking for "Sonia Gandhi and her closest advisors" to be approached.

India agreed in 2010 to spend 3700 crores to acquire the Agusta helicopters that would be used by the President, PM and other top politicians.

But since the allegations of kickbacks erupted in Italy, it has cancelled the contract and the CBI has launched its own investigation into the swindle.
 

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No decision on debarring AgustaWestland: Antony
New Delhi, Feb 5, 2014, IANS:
The central government has not taken a decision to debar AgustaWestland, following the cancellation of a contract with it for supply of 12 VVIP helicopters, Defence Minister A.K. Antony said Wednesday.The central government has not taken a decision to debar AgustaWestland, following the cancellation of a contract with it for supply of 12 VVIP helicopters, Defence Minister A.K. Antony said Wednesday. PTI File Photo

The central government has not taken a decision to debar AgustaWestland, following the cancellation of a contract with it for supply of 12 VVIP helicopters, Defence Minister A.K. Antony said Wednesday.

Antony said in a written reply in the Rajya Sabha that the government was taking steps to get stay obtained by the company in a tribunal in Milan vacated for encashment of advance bank guarantees.

Antony said the contract for supply of 12 VVIP/VIP helicopters signed with AgustaWestland International Limited (AWIL) Feb 8, 2010 was terminated by the government Jan 1 this year for breach of provisions of the pre-contract integrity pact and breach of the terms of the contract by the company.

He said subsequent to the termination of the contract, two bank guarantees amounting to about Rs.240 crore have been encashed. He said advance bank guarantees were provided by the seller on Deutsche Bank, Milan and demand has been made for their encashment.

"However, the seller has obtained an interim stay from the Ordinary Tribunal of Milan, Italy against this. Steps are underway to get the stay vacated," Antony said.On a query about blacklisting of AgustaWestland, Antony said: "No decision has been taken till date to debar the said company."

AgustaWestland is a British subsidiary of Italian firm Finmeccanica. In another statement in the Rajya Sabha on the VVIP chopper deal, Antony Wednesday said the authenticity of "notes" pointing fingers at Indian leaders was "not proved". The minister made the statement after reports said middlemen in the AgustaWestland deal were trying to target certain Indian leaders.

The minister said the government has received "one unsigned handwritten paper".He said the transcript of the hearing of arrested middleman Guido Haschke has also been received.

"There is another unsigned document purported to be written by Mr. Christian (Michel) to the attention of one Mr. Peter Hulet for high commissioner to target certain Indian leaders," Antony said.

"The authenticity of these documents is not proved. The case is presently in progress in the Italian court," he said. According to reports, the note was written by Michel to an AgustaWestland official in India to ask a "High Commissioner" to target Congress chief Sonia Gandhi and her close advisers Ahmed Patel, Pranab Mukherjee and Veerappa Moily.

Antony said that after the arrest of senior officials of Finmeccanica in Italy, the Central Bureau of Investigation registered a preliminary inquiry in February 2013 which has now been converted into a regular case "against former Air Chief Marshal S.P. Tyagi and 18 other people and companies. CBI has issued Letters Rogatory for witnesses and evidence".

He said representatives of the defence ministry, CBI and the external affairs ministry have been attending hearings in Italy's Court of Busto Arsizio in Milan in the case going on there.

The issue was raised in the upper house by BJP leader Ravishankar Prasad, who said later that the minister's reply "concealed more than it revealed". "Why in't there any categorical denial? Michel's letter clearly names Sonia Gandhi. He said Sonia Gandhi was the driving force," Prasad said.
 

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Article : Shri Arun Jaitley on "Raksha Mantri's statement in Rajya Sabha on the Agusta Westland"
Saturday, 08 February 2014

Accessibility

Raksha Mantri's statement in Rajya Sabha on the Agusta Westland

- Arun Jaitley
Leader of Opposition (Rajya Sabha)

On February 5, 2014, the Raksha Mantri Shri A.K. Antony made a suo moto statement in the Rajya Sabha. His statement is in relation to the disclosures in the media, which are based on documents supplied by the prosecutors in the competent Italian courts. The Raksha Mantri said that a crucial document seized from Mr. Guido Haschke contains two important statements. The word "FAM" refers to the 'Family', which he believes, is the Tyagi family. He cannot make out who the words "AP" refers to. He further states that there is another document by Mr. Christian Michel which targets certain Indian leaders.

Even though clarifications have to be sought from the Minister, I doubt it will be possible to seek clarifications on account of the disturbances in the House. Let me put across my doubts, which I would have wanted the Raksha Mantri to clarify.

The document dated March 15, 2008 recovered from the Italian middleman gives the understanding of the Italian middleman about India. It mentions "as Mrs. Gandhi is the driving force behind the VIP, she will not fly any more in MI-8". This document gives a list of persons including various Ministers and party functionaries who are close to Mrs. Gandhi.

The account sheet separately seized, uses under the title 'Political' which refers to "AP". The next entry is "FAM", which now is admitted to mean Family.

Admittedly, in the deal kickbacks have been paid and the Indian system has been subverted. The contract has, therefore, been cancelled. I have already said that these note sheets remind us of the 1987 seizures in Sweden where the entry in Martin Ardbo's diary referred to the Word 'Q'. It eventually became clear as to who 'Q' was. Is it rocket science, in the political arena, to decipher the abbreviation mentioned in the note sheet? Is it not unusual for middleman to be referred to as 'Family'?

When words in their natural course are understood to have a particular meaning, why should the word 'Family' be given a meaning other than how it is understood in India?
 

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Defence ministry initiates blacklisting process against AgustaWestland - The Times of India

NEW DELHI: The defence ministry has kicked off the process for blacklisting AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica, after cancelling its contract for 12 VVIP helicopters on January 1.

"The (blacklisting) proposal is now being vetted by the ministry's legal team. We will then seek the opinion of both the law ministry and the CBI before taking the formal step," a top official told TOI.

The blacklisting of AgustWestland, however, will take several weeks more since the ministry will wait for the CBI report on the evidence regarding the alleged payment of kickbacks in the 556 million euros deal for the 12 AW-101 helicopters inked with AgustaWestland in February 2010. As per Italian investigators, 51 million euros were paid as kickbacks to swing the deal.

The ministry is also trying to encash the bank guarantees provided by AgustaWestland in the deal, which total up to around 270 million euros and is roughly equivalent to the amount already paid to the company after the delivery of the first three helicopters.

Defence minister A K Antony has detailed a specific standard operating procedure (SOP) for dealing with the VVIP helicopter scandal, which includes external legal opinion at every stage from the law ministry.

With AgustaWestland putting up a stiff fight at every stage, the ministry is doubly cautious to ensure that its procedures and documentation are water-tight. "There is no option but to proceed with the blacklisting of AgustaWestland because that is what law mandates," said the official.

If the company is indeed blacklisted, it will be denied access to the Indian market for at least a decade. AgustaWestland would then join 15 other defence firms that are on the "de-barred" list of the defence ministry. In orders issued in 2012 and 2013, the ministry debarred these 15 companies - including Singapore Technologies Kinetics, Israel Military Industries, Rheinmetall Air Defence (Zurich), BVT Poland and Corporation Defence Russia -- from doing business for the next 10 years.

The blacklisting, of course, would have severe adverse effect on the maintenance of AgustaWestland supplied helicopters that are already in service in the Indian armed forces.

Though the final decision will be taken after legal advice, it seems that just AgustaWestland -- which had inked the integrity pact and contract with the defence ministry -- and not the entire Finmeccanica group will face the blacklisting process.

Different Finmeccanica companies are involved in several ongoing defence projects in India, with one estimate holding that the conglomerate is in contention for Indian military contracts worth over $6 billion, ranging from helicopters and aircraft to missiles and guns.

Incidentally, the ministry has already put on hold its own recent clearance to the long-pending Rs 1,800 crore naval project to buy 98 'Black Shark' heavy-weight torpedoes, manufactured by another Finmeccanica subsidiary Whitehead Alenia Sistemi Subacquel (WASS), for the Scorpene submarines, as reported earlier by TOI.
 

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India's Solicitor General
Advises Against Blacklisting
AgustaWestland


India's decision to blacklist AgustaWestland is set to be delayed as the country's Solicitor General Mohan Parasaran advised against any immediate steps. "The Law officer has asked us to wait before going ahead with the blacklisting of the Anglo-Italian firm. We have now referred the issue to CBI, which is carrying out legal proceedings against the firm in India," A Defence Ministry source was quoted as saying by PTI. The Indian MoD cancelled VVIP helicopter contract, when allegations of bribery surfaced, after agreeing to arbitration proceedings.
The arbitration process is yet to start between the two sides as they have not agreed upon the third member of the arbitration panel in which AgustaWestland has nominated former Supreme Court judge Justice (retd) BN Srikrishna and the Defence Ministry has nominated former Justice Jeevan Reddy, according to PTI. Meanwhile, AgustaWestland has maintained it did not offer kickbacks to Indian officials to help win the contract.

India's Solicitor General Advises Against Blacklisting AgustaWestland
 

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