Finmeccanica chopper deal to be scrapped if charges proven: Antony

Says India will also blacklist company if allegations of bribery are proven

India will blacklist Finmeccanica Spa and cancel its deal to buy 12 helicopters from the Italian defence group if allegations of bribery are proven against the company, Defence Minister A K Antony said on Wednesday.

Antony said the Central Bureau of Investigation (CBI) had been ordered to investigate the matter and if the allegations were proven, those involved would "pay for their lapses. Nobody will be spared."

"Once we get the preliminary inquiry report from CBI, strongest action will be taken against those found guilty"  Antony said, adding that he has no information on former Air Chief S P Tyagi whose role in the chopper deal has come under the scanner.

The Ministry of Defence also decided to put on hold the receipt of the remaining nine of the 12 helicopters for which the Rs 3,600 crore deal was struck in 2010.

Asked whether the money paid to the Italian firm so far can be claimed back by the Indian government, Antony said, "If the Indian government paid any amount of the money, as per the provisions of the integrity pact, we can get back the entire money we paid to the vendor."

He mentioned that the Defence Procurement Procedure (DPP) governing all defence deals takes care of the integrity pact by the foreign vendors.

Meanwhile, CBI said it has recived the complaint from the Defence Ministry and will take a call on whether to conduct a preliminary enquiry or register an FIR at a high-level meeting scheduled this evening.

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.