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India terminates AgustaWestland chopper deal

January 1, 2014 - New Delhi

India on Wednesday terminated the Rs.3,726 crore scam ridden VVIP chopper deal with AgustaWestland International Limited (AWIL) on the grounds of breach of pre-contract integrity pact.

It may be recalled here that the deal for supply of 12 choppers of which three have already been delivered came under the scanner following allegations of kickbacks to senior India Air Force Officers and others to a tune of Rs.360 crore.

The Defence Ministry confirmed of this action of cancellation in the evening and added that the arbitration route would be taken and Justice BP Jeevan Reddy will be the arbitrator for the Ministry.

Brief Facts

  • August 1999: Air Headquarters proposed procurement of VIP helicopters
  • February 8, 2010: Ministry of Defence concludes a contract with AgustaWestland for 12 VVIP choppers at Rs.3, 726.96 crore.
  • November 2012-February 2013: Delivery of three helicopters
  • February 12, 2013: Finmeccanica chief Giuseppe Orsi accused in VVIP chopper scam arrested by Italian police for alleged payoffs.
  • February 25, 2013: CBI registers an inquiry against 11 persons including former IAF Air Chief Marshal SP Tyagi and his cousins, besides four companies for alleged payment of kickbacks by Finmeccanica subsidiary AgustaWestland.
  • February 27, 2013: Motion in Rajya Sabha for a probe by 30 members JPC passed
  • January 1, 2014: AgustaWestland agreement terminated Justice BP Jeevan Reddy named arbitrator

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