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Chopper deal: India has to recover bank guarantee of Rs 2134 crores

PTI | Last Updated: Sunday, March 2, 2014 - 16:22

New Delhi: India has to recover bank guarantee worth Rs 2,134 crore deposited in Italian banks after scrapping AgustaWestland VVIP chopper deal in which allegations of corruption against then IAF Chief SP Tyagi and others are being probed by CBI.
In an RTI reply, Indian Air Force said 83,439,303 Euros (15 per cent of the contract value) and Euro 166,878,607 as (30 per cent of contract value) totalling to about Rs 2,134 crore (as per present exchange rates) were deposited as bank guarantee by the company in Deutsche Bank, Milano, Italy.

The reply said Rs three crore were deposited in State Bank of India, Parliament Street Branch as Integrity Pact Bank Guarantee.

"The total contract price for the 12 helicopters along with the associated equipment is Euro 556,262,026. 15 per cent of total contract price was paid as advance payment in February 2010 and 30 per cent of the total contract price was paid on completion of Critical Design Review in March 2011," the reply to Subhash Agrawal said.

The advance payment made to AgustaWestland comes to about Rs 1,493 crore (as per present exchange rates) of the total Rs 3600-crore deal.

The Defence Ministry has received the money which was deposited in the State Bank of India here in the form of a guarantee in connection with Rs 3600-crore helicopter deal which has since been scrapped because of bribery charges.

The recovery took place even as an Italian court had stayed India`s move to encash bank guarantee of around Rs 2000 crore.

"Subsequent to the termination of the contract, two bank guarantees amounting to Rs 240 crores approximately have been encashed. Advance amount is adjusted against the payments for deliveries under the contract and is secured by advance bank guarantees provided by the seller on Deutsche Bank, Milan.

"Demand was made on Deutsche Bank, Milan for encashment of advance bank guarantees. However, the seller has obtained ad interim stay from the Ordinary Tribunal of Milan, Italy against this. Steps are underway to get the stay vacated," Antony had said in a statement in Rajya Sabha.

First Published: Sunday, March 2, 2014 - 16:22

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