India Cancels Rs. 3,600 Crore Agustawestland Chopper Deal

NEW DELHI – India terminatedthe 3,600 crore deal withAgustaWestland for the purchaseof 12 VVIP choppersover allegations of kickbackshaving been paid to fix the deal.In a statement, the defence ministrysaid: “The government ofIndia has terminated withimmediate effect the agreementthat was signed with MssrsAgustaWestland InternationalLtd. (AWIL) on Feb 8, 2010, forsupply of 12 VVIP/VIP helicopterson grounds of breachof pre-contract integrity pactand the agreement by AWIL.””Based on the opinion receivedearlier from the attorney generalof India, it has been the view ofthe government that integrityrelated issues are not subject toarbitrations. However, AWILhas since pressed for arbitrationand appointed an arbiter fromits side. In view of this, theMOD (ministry of defence)sought afresh the opinion of theattorney general. With a view tosafeguard the interest of thegovernment, the MOD hasnominated Justice B.P. JeevanReddy as its arbitrator.”The cancellation comes morethan a year after media reportsthat two top officials of thecompany had allegedly paidbribes to bag the contract.