This Article is From Feb 15, 2013

VVIP chopper scam: company allegedly used for kickbacks doesn't exist

VVIP chopper scam: company allegedly used for kickbacks doesn't exist
New Delhi: In the elaborate money trail that Italian authorities allege was used to bribe Indian officials to help UK company AgustaWestland land a 4000-crore helicopter deal, one of the companies mentioned does not seem to exist.

Italian court documents mention IDS India, a front company to which, they say, about Rs 140 crore in kickbacks or bribe money was routed through Tunisia. But, records in the ministry of corporate affairs show no such company. IDS India either never existed or has been wound up.

The Italian documents say the bribe money was transferred in installments through IDS India and another company, IDS Tunisia, to pay public officials here. Bribe payments, they say began in 2007 against fake bills raised for what was shown as software development and continued till 2011.

Other companies dot the kickback trail mentioned in the Italian prosecution's report like Aeromatrix, IDS Mauritius and IDS Infotech, a company that ostensibly developed software for Finmeccanica and AgustaWestland. Italian defence giant Finmeccanica is the parent company of AgustaWestland. Its CEO was arrested this week on charges of corruption as a result of two-year Italian investigation into the helicopter deal with India.  

The Italian prosecutors have alleged that former Air Chief Marshal SP Tyagi was paid bribe to ensure that technical specifications in the contract were changed to suit AgustaWestland. They say his three cousins were paid 12 million euros or Rs. 86 crore, and that a middleman for AgustaWestland met with SP Tyagi six times, allegedly to discuss the contract.

Air Chief Marshall (retired) Tyagi has denied the charges.

India has asked AgustaWestland to explain if it paid bribes to land the deal. A letter from Defence Minister AK Antony warns that the contract could be cancelled if the manufacturer does not cooperate by invoking a strong integrity clause that the AgustaWestland signed. The CBI is now investigating the controversy.

Italian premier Mario Monti has said that his government will "guarantee the correct governance" of Italian defence and aerospace company Finmeccanica.
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