thestringshredder
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NEW DELHI: Without waiting for further evidence or an interim report from the CBI, the government is finalizing punitive action against British defence firm AgustaWestland for allegedly engaging middlemen in the 2010 deal for the purchase of 12 VVIP helicopters.
The decision was forced by the fact that the government will have to wait for an interim CBI report or more documentary evidence before deciding on the future of the particular contract cancellation, opting for arbitration, return the three helicopters it has received etc since Rs 1,500 crore has already been paid to the UK firm and other contractual issues are also involved.
The government is adopting a twin strategy to deal with the latest defence scandal to hit the beleaguered UPA government. It has separated the actions on the specific contract for VVIP helicopters from the actions against the firm for its misconduct in Indian market.
Once action on the specific contract is finalized, the present move against the company could be upgraded, probably to a permanent blacklisting for 10 years from the Indian market.
Sources said the ministry of defence (MoD) is engaged in fine-tuning the action to be taken against the company for alleged violation of defence procurement procedure and integrity pact. The action being contemplated includes blacklisting of the company from all future tenders and even to remove it from those that are under consideration. The department of defence acquisition is working out the modalities for the punitive action, and if required it would be send for legal scrutiny.
In addition, the MoD would initiate actions against the UK firm on the VVIP helicopter deal, which has been suspended since the scam was unearthed. The action on this particular contract would kick in after the MoD receives an interim report from CBI and details from the Italian courts.
The MoD move comes even as the instant trial of former CEO of Finmeccanica Giuseppe Orsi and the CEO of AgustaWestland Bruno Spagnoli in the VVIP helicopter bribery case is set to begin in Italy on June 19. Indian government is expected to receive documents and other evidence filed in the Italian court since it is also a party to the case.
Sources said action on VVIP helicopter contract would be initiated only after MoD has the documents so that even if the British firm opts for arbitration it is able to stand legal scrutiny.
According to preliminary documents filed in an Italian court, 51 million euro (around Rs 350 crore) was paid as kickbacks through two middlemen in the deal. Among those named in the CBI FIR into the case is former air force chief Air Chief Marshal Shashi P Tyagi and his three cousins.
Link - Govt gears up to punish AgustaWestland - The Times of India
The decision was forced by the fact that the government will have to wait for an interim CBI report or more documentary evidence before deciding on the future of the particular contract cancellation, opting for arbitration, return the three helicopters it has received etc since Rs 1,500 crore has already been paid to the UK firm and other contractual issues are also involved.
The government is adopting a twin strategy to deal with the latest defence scandal to hit the beleaguered UPA government. It has separated the actions on the specific contract for VVIP helicopters from the actions against the firm for its misconduct in Indian market.
Once action on the specific contract is finalized, the present move against the company could be upgraded, probably to a permanent blacklisting for 10 years from the Indian market.
Sources said the ministry of defence (MoD) is engaged in fine-tuning the action to be taken against the company for alleged violation of defence procurement procedure and integrity pact. The action being contemplated includes blacklisting of the company from all future tenders and even to remove it from those that are under consideration. The department of defence acquisition is working out the modalities for the punitive action, and if required it would be send for legal scrutiny.
In addition, the MoD would initiate actions against the UK firm on the VVIP helicopter deal, which has been suspended since the scam was unearthed. The action on this particular contract would kick in after the MoD receives an interim report from CBI and details from the Italian courts.
The MoD move comes even as the instant trial of former CEO of Finmeccanica Giuseppe Orsi and the CEO of AgustaWestland Bruno Spagnoli in the VVIP helicopter bribery case is set to begin in Italy on June 19. Indian government is expected to receive documents and other evidence filed in the Italian court since it is also a party to the case.
Sources said action on VVIP helicopter contract would be initiated only after MoD has the documents so that even if the British firm opts for arbitration it is able to stand legal scrutiny.
According to preliminary documents filed in an Italian court, 51 million euro (around Rs 350 crore) was paid as kickbacks through two middlemen in the deal. Among those named in the CBI FIR into the case is former air force chief Air Chief Marshal Shashi P Tyagi and his three cousins.
Link - Govt gears up to punish AgustaWestland - The Times of India
