Indian Defence Ministry has issued a final showcause notice to AgustaWestland
The Defence Ministry has issued a final showcause notice to AgustaWestland before the impending cancellation of a controversial 3,600 crore contract for choppers for VVIPs including the Prime Minister.
The UK-based AgustaWestland has been given 21 days to reply to the notice, which accuses the company of violating a "pre-contract Integrity Pact".
The VVIP chopper contract is under investigation by Italian and Indian agencies for alleged kickbacks paid to Indian officials - including former Air Chief SP Tyagi.
The Defence Ministry has stated that because of the integrity pact, it can get back all the money paid by it for the deal.
India has put on hold the further delivery of choppers and payments.
The Defence Ministry's notice comes days after Swiss resident Guido Ralph Haschke, an alleged middleman named by Italian investigators, was arrested on charges of bribery.
The Italian prosecutor who conducted the preliminary inquiry in the case has alleged that Finmeccanica, the parent company of AgustaWestland, had used the services of middlemen like Haschke to bribe Indian officials.