AgustaWestland presents case to defence ministry

AgustaWestland Wednesday presented its case to the defence ministry following a show-cause notice to axe a controversial deal of supplying 12 VVIP helicopters to the Indian Air Force (IAF), said informed sources.

The ministry had earlier this month extended by 15 days the deadline set for AgustaWestland, the Britain-based subsidiary of Italian conglomerate Finmeccanica, to reply to the show-cause notice for deal cancellation.

The ministry Oct 21 issued the final show-cause notice to the firm giving it 21 days to file a reply. The company asked for more time.

The sources said AgustaWestland was asked to present its case to the ministry Nov 20 and to give a written reply to the show-cause notice by Nov 26 regarding the Rs.3,727-crore contract.

Defence Minister A.K. Antony has accused the company of violating its contractual obligations.

The ministry has frozen the contract following allegations of kickbacks against top officials of the Anglo-Italian firm.

The ministry concluded a contract with AgustaWestland in February 2010 for 12 AW-101 helicopters at a cost of euros 556.262 million (Rs.3,726.96 crore).

The helicopters were for the IAF's elite Communication Squadron, which ferries the president, the prime minister and other VVIPs.

The Comptroller and Auditor General slammed the defence ministry and IAF for deviations from procedures in procurement of the choppers.

--Indo-Asian news Service

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