The government action came as it prepares for an onslaught
Press Trust of Indiain Parliament beginning on February 21, with parties like BJP and Samajwadi Party saying they would raise the issue and seek answers on the alleged scam. The Defence Ministry, which is under attack, had said yesterday that the government is determined to take all possible legal and administrative action against the guilty parties and accordingly has ordered a thorough probe by CBI. After the arrest of Finmeccanica CEO Giuseppe Orsi in Milan on Tuesday, India had put on hold the receipt of the remaining helicopters as well as rest of the payment. India has already received three and three more were to be delivered next month. The government yesterday asked Finmeccanica to state whether any money was illegally paid to any Indian entity or individual "which would be violative of the Integrity Pact or any other terms and conditions of the contract". It noted that the contract with AgustaWestland carried an integrity pact that bars paying of bribes or involvement of middlemen, the Ministry warned of "strict action including cancellation of contract, recovery of payment, blacklisting and penal action can be taken against the vendors." The Ministry said the contract signed with AgustaWestland includes "specific contractual provisions against bribery and the use of undue influence. Article 22 of the contract deals with penalty for use of undue influence. This clause entitles the �Buyer� to cancel the contract with the �Seller� and recover from him the amount of any loss arising from such cancellation." "Article 23 of the contract entitles the �Buyer� to consider cancellation of the contract without any entitlement or compensation to the �Seller� who shall be liable to refund all payments made by the �Buyer� in terms of the contract along with interest," it said.
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