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Chopper deal with AgustaWestLand International Ltd (AWIL) scraped
Jan 02, 2014

The Government of India has terminated with immediate effect the Agreement that was signed with M/s. AgustaWestLand International Ltd. (AWIL) on 08 February, 2010 for the supply of 12 VVIP/VIP helicopters on grounds of breach of the Pre-contract Integrity Pact (PCIP) and the Agreement by AWIL.

The 2010 deal was for supply of 12 helicopters for Indian VVIPs, out of which three had already been delivered when the controversy erupted in February last year with the arrest of two top officials of the firm.

India is also expected to levy damages of more than 500 million Euros on the Anglo-Italian firm while invoking the clauses under the Integrity pact of the deal.

After scrapping the deal, India has now decided to go in for arbitration and has appointed former Justice Jeevan Reddy on its behalf.

About the scam

The government had frozen the contract in February last year for supply of 12 AW-101 VVIP choppers to the IAF after allegations that Rs 360 crore were paid as bribe.

The Central Bureau of Investigation was probing the scam and it had registered a case against six firms — Finmeccanica, Italy; AgustaWestland, U.K.; IDS Tunisia; Infotech Design System (IDS Mauritius); IDS infotech Ltd., Chandigarh; and AeromatrixInfotech Solution, India.  Soon after the arrest of Finmeccanica chief Giuseppe Orsi — accused in the VVIP chopper scam — by the Italian police in February 2013, the agency instituted a preliminary enquiry. Within a fortnight, a regular case was registered against the former IAF chief, S.P. Tyagi, and 12 others, including his three cousins. 

The CAG had also highlighted loopholes in the deal.


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