The government action came as it prepares for an onslaught

Image
Press Trust of India
Last Updated : Feb 15 2013 | 9:33 PM IST
in 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.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 15 2013 | 9:33 PM IST

Next Story