India wins Italy appeal over AgustaWestland helicopter deal

[sancho]

Good decision, but I hope we recover all money not "most of it."

@sancho any news on its replacement?

Mi 17 versions would be an easy to integrate option, but the right choice would one of the helicopters from the competition that met the requirements, but lost out to the AW 101. Afaik the Mi 17 did not met the requirement, so it needs to be seen what the MoD can do after the new government is in power.

 

[MarkusS]

Mi 17 versions would be an easy to integrate option, but the right choice would one of the helicopters from the competition that met the requirements, but lost out to the AW 101. Afaik the Mi 17 did not met the requirement, so it needs to be seen what the MoD can do after the new government is in power.

you seriously want buy russian junk? lolI find it amusing that you consider garbage worth flying that i would never ever set a foot in.

 

[livingdead]

you seriously want buy russian junk? lolI find it amusing that you consider garbage worth flying that i would never ever set a foot in.

yo man, offtopic, what happened to italian marines. did pope do anything like you suggested?

 

[MarkusS]

yo man, offtopic, what happened to italian marines. did pope do anything like you suggested?

They still work in our embassy, get paid diplomats salary and attend regular the best nightclubs on the spot. I would change with them any day.

 

[sarthak]

We forced your government to drop that pathetic "terrorism law". Now the charge left is a minor thing and even this will implode. That entire trial is for show.

LOL no , your godmother Sonia Gandhi is no longer in power. You lost your chance to get your marines on 16th May 2014. Now , the only time they'll be back in Italy is 2020 or after . I could hardly care less if they are holed up inside the Italian embassy and not in a real prison. They'll literally spend 7 years of their life in a house , they are not allowed to take a step outside the embassy

 

[livingdead]

They still work in our embassy, get paid diplomats salary and attend regular the best nightclubs on the spot. I would change with them any day.

good for them.. hope italian politicians are happy and we avoided the wrath of the pope ..

 

[MarkusS]

LOL no , your godmother Sonia Gandhi is no longer in power. You lost your chance to get your marines on 16th May 2014. Now , the only time they'll be back in Italy is 2020 or after . I could hardly care less if they are holed up inside the Italian embassy and not in a real prison. They'll literally spend 7 years of their life in a house , they are not allowed to take a step outside the embassy

They visit nightclubs regulary, they leave the embassy regulary. So far your country avoided anything to destroy the freidnship between our nations...we understand they must use some harsh words to make the stupid masses happy. But deals are made behind closed doors and it is not in imdias interest to have italy as enemy. Our nations were always friends with each other and i doubt you want change this.

good for them.. hope italian politicians are happy and we avoided the wrath of the pope ..

Why "we"? You are british and you have nothing to do with this conflict.

 

[shree835]

anyway because she would be used to d

Its ok, we dont need your business anyways. But i guess you still will accept our food aid that your people depend on?

The EU is Indias most important tradepartner. You need us as friends and not as enemy.




Our men have a good paiyng job in our embassy, live in an italian villa and attend night clubs and high society party in your country. Oh and they are celebrated as heroes in italy. For killing two pirates.

Yes very true we need friend , but not in the cost of self respect...In the business point of view we are going to sideline italy ...

Please ask your italia guy to stay at italia ... Or they will face like this situation...

 

[Indo-guy]

India taking steps to 'fully recover' bank guarantees in VVIP chopper scam - The Times of India


NEW DELHI: The defence ministry on Sunday said it will take "immediate steps to fully recover" the over 250 million Euros bank guarantees provided by AgustaWestland in the 556 million Euros (Rs 3,546-crore) contract for 12 VVIP helicopters, which was scrapped on January 1 due to allegations of corruption and bribery.

READ ALSO: January 1, 2014: India cancels Rs 3,546 crore AgustaWestland VVIP chopper deal

"The appellate court in Milan on Friday has substantially upheld the claims of the Indian government against AgustaWestland International Ltd (AWIL), Agusta Westland Spa and Deutsche Bank, Italy, on the encashment of bank guarantees and performance bond in the VVIP helicopter case," said the MoD.

"The court also ordered AWIL and AW Spa to reimburse legal costs of the Indian government. MoD is studying the order and will take immediate steps to recover the amounts fully," it added.

As reported by TOI earlier, India had appealed against the Italian court order in March that had barred India from recovering the "advance bank guarantees" — which total up to 250,317,910 Euros — with the Deutsche Bank at Milano in Italy.

The MoD has already encashed the "integrity pact bank guarantee" submitted by AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica, in the State Bank of India at Parliament Street in New Delhi.

In February last year, after the arrest of the then Finmeccanica CEO Giuseppe Orsi in Italy, the MoD had frozen all further payments to AgustaWestland. This was done even though only three of the 12 AW-101 helicopters had been delivered by then, with around 45% of the total contract value already being paid to the company.

AgustaWestland had submitted two bank guarantees to match the payments — one advance of 15% and another of 30% — as well as "5% earnest money" and "5% performance bond" as part of the integrity pact.

READ ALSO: India to appeal against Italian court's order on bank guarantees

The MoD had also nominated former Supreme Court judge BP Jeevan Reddy as its arbitrator in the case after AgustaWestland invoked the arbitration clause by naming another former Supreme Court judge, BN Srikrishna, as its representative.

Though the government is ready to deal with arbitration, it maintains the cancellation of the deal because of AgustaWestland's "blatant violation" of the pre-contract integrity pact did not fall under its purview, as reported by TOI earlier.

There are "enough safeguards" built into the integrity pact and the contract inked with AgustaWestland in February 2010 to "protect India's interests" and impose "punitive damages" on the company, say officials.

The violation of the integrity pact entitles the "buyer" to take action against the "seller" like forfeiture of the earnest money, performance bond, cancellation of the contract concerned and other contracts without any compensation and recovery of all sums already paid with interest.

"The integrity pact also specifies the vendor will return the payments made to it, with a 2% interest rate over LIBOR (London Interbank Offered Rate), if its provisions are violated rendering the entire contract null and void. The company can also be debarred or blacklisted for a minimum period of five years, which is extendable," said an official.

This is the second time the MoD is invoking the integrity pact's penal provisions. In 2012, it had for the first time encashed the Rs 224 crore bank guarantee given in a contract by Israeli Military Industries, one of six armament companies blacklisted for 10 years in connection with the corruption scandal against former Ordnance Factory Board chairman Sudipto Ghosh.

As per MoD's defence procurement procedure (DPP), the arbitration proceeding has to be held in New Delhi, with one arbitrator each being nominated by the buyer and seller. The third, who shall not be a citizen of domicile of the country of either of the parties, would be the neutral one.

well at least we dont sound like we speak with our nose when speaking english....or german. Indians in europe always sell roses on street. This guy here turns it around.

when frustrated people like you have nothing substantial to discuss ...they resort to trolling .

 

[MarkusS]

India taking steps to 'fully recover' bank guarantees in VVIP chopper scam - The Times of India


NEW DELHI: The defence ministry on Sunday said it will take "immediate steps to fully recover" the over 250 million Euros bank guarantees provided by AgustaWestland in the 556 million Euros (Rs 3,546-crore) contract for 12 VVIP helicopters, which was scrapped on January 1 due to allegations of corruption and bribery.

READ ALSO: January 1, 2014: India cancels Rs 3,546 crore AgustaWestland VVIP chopper deal

"The appellate court in Milan on Friday has substantially upheld the claims of the Indian government against AgustaWestland International Ltd (AWIL), Agusta Westland Spa and Deutsche Bank, Italy, on the encashment of bank guarantees and performance bond in the VVIP helicopter case," said the MoD.

"The court also ordered AWIL and AW Spa to reimburse legal costs of the Indian government. MoD is studying the order and will take immediate steps to recover the amounts fully," it added.

As reported by TOI earlier, India had appealed against the Italian court order in March that had barred India from recovering the "advance bank guarantees" — which total up to 250,317,910 Euros — with the Deutsche Bank at Milano in Italy.

The MoD has already encashed the "integrity pact bank guarantee" submitted by AgustaWestland, the UK-based subsidiary of Italian conglomerate Finmeccanica, in the State Bank of India at Parliament Street in New Delhi.

In February last year, after the arrest of the then Finmeccanica CEO Giuseppe Orsi in Italy, the MoD had frozen all further payments to AgustaWestland. This was done even though only three of the 12 AW-101 helicopters had been delivered by then, with around 45% of the total contract value already being paid to the company.

AgustaWestland had submitted two bank guarantees to match the payments — one advance of 15% and another of 30% — as well as "5% earnest money" and "5% performance bond" as part of the integrity pact.

READ ALSO: India to appeal against Italian court's order on bank guarantees

The MoD had also nominated former Supreme Court judge BP Jeevan Reddy as its arbitrator in the case after AgustaWestland invoked the arbitration clause by naming another former Supreme Court judge, BN Srikrishna, as its representative.

Though the government is ready to deal with arbitration, it maintains the cancellation of the deal because of AgustaWestland's "blatant violation" of the pre-contract integrity pact did not fall under its purview, as reported by TOI earlier.

There are "enough safeguards" built into the integrity pact and the contract inked with AgustaWestland in February 2010 to "protect India's interests" and impose "punitive damages" on the company, say officials.

The violation of the integrity pact entitles the "buyer" to take action against the "seller" like forfeiture of the earnest money, performance bond, cancellation of the contract concerned and other contracts without any compensation and recovery of all sums already paid with interest.

"The integrity pact also specifies the vendor will return the payments made to it, with a 2% interest rate over LIBOR (London Interbank Offered Rate), if its provisions are violated rendering the entire contract null and void. The company can also be debarred or blacklisted for a minimum period of five years, which is extendable," said an official.

This is the second time the MoD is invoking the integrity pact's penal provisions. In 2012, it had for the first time encashed the Rs 224 crore bank guarantee given in a contract by Israeli Military Industries, one of six armament companies blacklisted for 10 years in connection with the corruption scandal against former Ordnance Factory Board chairman Sudipto Ghosh.

As per MoD's defence procurement procedure (DPP), the arbitration proceeding has to be held in New Delhi, with one arbitrator each being nominated by the buyer and seller. The third, who shall not be a citizen of domicile of the country of either of the parties, would be the neutral one.



when frustrated people like you have nothing substantial to discuss ...they resort to trolling .

i resort to trolling, but the moron who made fun about italians speaking english does not? spare me sour double standards.

 

[Indo-guy]

i resort to trolling, but the moron who made fun about italians speaking english does not? spare me sour double standards.

post reported for trolling .

 

[MarkusS]

post reported for trolling .

yep i reported yours too, since it is senseless trolling and provocation.

On the sidenote one should see that india is a minor market for european defense firms. India can't afford really impressive military equipment and this helicopter deal was daily bread and butter business. If this would happen in China or Saudi arabia, this would mean really trouble, but india is not a major market for us and i'm sure the situatiom will calm down.

I believe the best strategy formitaly is to ignore it and move on.

Since the deal is cancelled i'm sure india also respects our interests and gives the 3 already delivered helicopters back or pays for the, regulary?

 

[airuah]

@MarkusS

Dont worry about your marines...they will be here for a few years before the court decides on the judgement.....then they will have jail term here....

When they return home say after some 8-9 years, you can make a movie titled" 7 years a slave" part 2

 

[MarkusS]

@MarkusS

Dont worry about your marines...they will be here for a few years before the court decides on the judgement.....then they will have jail term here....

When they return home say after some 8-9 years, you can make a movie titled" 7 years a slave" part 2

I doubt this. You have no acess on them. You can´t enter our embassy and our PM already said he would never allow this. It would be seen as a decleration of war. Beside that indian government is not so stupid. We understand they must appease moronic masses like all politicians must do. Elections are over now. Business as usual and they will be send home. Thats how it always works. I´m not worried.

 

[airuah]

I doubt this. You have no acess on them. You can´t enter our embassy and our PM already said he would never allow this. It would be seen as a decleration of war. Beside that indian government is not so stupid. We understand they must appease moronic masses like all politicians must do. Elections are over now. Business as usual and they will be send home. Thats how it always works. I´m not worried.

We will not enter you embasy....we ll just make sure no one comes out also...well just put a barricade in front of your gate saying the pathway to the embassy is closed unyill further notice