India moves to scrap chopper deal, to send CBI team to Italy
New Delhi: As it braces for an opposition onslaught in Parliament next week, government on Friday cracked the whip by moving to scrap the 12 helicopter deal with AgustaWestland and decided to send a CBI team to Italy to probe the charges that kickbacks to the tune of Rs 362 crore were paid to bag it.
The Defence Ministry also threatened to take other actions as per terms of the contract, an apparent reference to invoking a clause in the contract for recovery of money already paid in the Rs 3,600 crore deal. India has paid more than 30 per cent of the sum.
"The Defence Ministry issued a formal show cause notice to AgustaWestland seeking cancellation of the contract and taking other actions as per terms of the contract," Ministry spokesman Sitanshu Kar said.
The company was asked to explain the bribery allegations within seven days and reply why the contract of 2010 should not be cancelled.
The action came after the ministry received "some report" from Italy, sources said.
The External Affairs Ministry has also written to the Italian government, seeking information on the issue.
A CBI team is also being sent to Italy where the CEOs of AgustaWestland and its parent company Finmeccanica have been arrested on charges of bribery.
The Defence Ministry`s notice comes a day after the ministry warned of legal action, including invoking integrity pact which provides for cancellation of the contract if bribes are paid and recovery of the money already paid.
More from India
More from World
More from Sports
More from Entertaiment
- Over 60 cadets killed in Pakistan police academy attack
- DNA: Exclusive report on the extreme sacrifices made by ITBP soldiers
- Watch: PM Narendra Modi's ''progressive'' remark on triple talaq
- DNA: Terrorists' new strategy of snatching weapons from Indian security personnel
- Panel discussion over delayed development in Ayodhya
- Explosion in Delhi's Naya Bazar, one killed; anti-terror wing, Special cell at spot
- This is why Cyrus Mistry was removed as Chairman of Tata Sons!
- WATCH: Akhilesh Yadav's emotional speech revealing the real reason behind Samajwadi Party crisis; he was about to cry
- Read letters by Ratan Tata to PM Narendra Modi and Group employees after Cyrus Mistry's ouster
- Prompt action on border pushes Pak to offer olive branch, says both sides need to 'formalise' 2003 ceasefire