AgustaWestland Demands Payment From Indian MoD

Facing the threat of cancellation of its Rs 3,600 crore deal for VVIP choppers, AgustaWestland has asked the Indian Government to release its payments, claiming the breach of contract.

In a letter written to the ministries of Defence, Finance and External Affairs, the Anglo-Italian firm has said that there were certain 'contractual difficulties' with the Defence Ministry and asked for its payments to be released.

India has paid around 30% of payments and withheld the remaining after the Italian investigators arrested former CEOs of Finmeccanica and Agusta for allegedly paying Rs 362 crore kickbacks to swing the deal in its favour.

The firm has said that till proven guilty, no one can be held guilty and investigations were still on in both the countries in the case.

The case is registered by CBI and has question IAF chief S P Tyagi. 

In another development, an Indian court has allowed bank accounts of two of the accused, reportedly cousins of S P Tyagi, to be 'de-frozen'. Suspecting that the bribe money had gone into those accounts, the Indian Central Bureau of Investigation had 'frozen' the accounts earlier.