AgustaWestland, which is accused of paying bribes to secure a contract to sell 12 VVIP helicopters to the Indian Air Force,
has put three helicopters in the hanger as the Indian government has not responded to its request for negotiations on further deliveries under the contract.
After news of the bribery became known, the Indian MoD ordered a criminal investigation and pur the contract on hold, meaning suspending both payments and accepting further deliveries.
AgustaWestland meanwhile, continued to assemble the aircraft and three more are ready for delivery complete with "Indian Air Force colours".
As the Indian MoD has not shown any inclination to take delivery, it has no option but to keep the choppers in storage. Work on assembling six more helicopters is continuing on schedule as AW has no choice but to fulfil its part of the deal, they said.
AgustaWestland sources told defenseworld.net at the Paris Air Show 2013 that the company had written two letters to the Indian MOD and to the Finance Ministry that the contract be performed as per the terms. However, there has been no response so far, they contended.
The remaining six helicopters are under various stages of manufacture and AgustaWestland will have to fulfil its part of the contract, they said adding that the contract does not provide for suspension of the contract but for cancellation in case of bribery charges being proved.
Meanwhile, the board of directors appointed senior member retired Adm. Guido Venturoni as vice chairman. But a new chairman has not yet been named.
Italian police arrested Giuseppe Orsi in February in connection with an investigation into suspected bribes paid to Indian officials to secure a VVIP helicopter deal.
Bruno Spagnolini, head of Finmeccanica helicopter unit AgustaWestland, along with Orsi was placed under house arrest.
India's Defence Minister AK Antony has officially announced the scrapping of a VVIP chopper contract, with effect from 1st January, 2014 on grounds that the Anglo-Italian firm AgustaWestland has breached the provisions of the Pre-contract Integrity Pact. Antony stated in a letter to Rajya Sabha that subsequent to the termination of the contract, two Bank Guarantees amounting to $38 Million approximate have been encashed
India has picked Russian Helicopters to supply 12 VVIP choppers to be used to transport high profile leaders, the Rostec state corporation said in a press release. The Mi-17V-5 helicopter was chosen by the countrys Special Protection Group (of the 150 helicopters already delivered to India) for escorting the most important politicians in India during the election season
The Indian government is seeking repayments worth some $367 million from the troubled Italian firm AgustaWestland over a scrapped helicopter deal. India last week cancelled a $770 million deal with AgustaWestland for 12 AW101 helicopters over what it termed a breach of integrity relating to alleged corruption
As the possibility of blacklisting by the Indian government looms over AgustaWestland following the termination of the VVIP helicopter deal, its participation in various other military tenders worth an estimated $3.5 billion also hang in the balance
AgustaWestland has confirmed that it received a termination notice from the Indian Ministry of Defence yesterday on the VVIP chopper deal, along with a notification concerning an appointment of an arbitrator from its side, as requested on November 25 and December 4, 2013. AgustaWestland claims that the contract termination notice by the Indian Ministry of Defence doesnt offer adequate basis to take any action against the Company
The Indian government has finally ended the Rs 3,546-crore VVIP chopper deal on the grounds that Anglo-Italian firm AgustaWestland had breached the integrity pact by allegedly paying several million euros in bribes. The formal announcement was made yesterday when Defence Minister A K Antony met Prime Minister Manmohan Singh to discuss further development in the case
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