<p>The Defence Ministry will not take any hasty decision and seek the opinion of the Law Ministry on the response given by the Anglo-Italian firm AgustaWestland, before taking any decision on the controversial VVIP helicopter deal, which may be scrapped eventually.<br /><br /></p>.<p>The company submitted its response to the Defence Ministry's show-cause notice on Monday – a day ahead of the deadline – but an official said the response and Law Ministry’s opinion would be studied first before any decision is taken on the contentious deal.<br /><br />India had paid a substantial part of the Rs 3,700-crore deal and received three helicopters – two in VIP and one in cargo configuration – from the company. The money paid so far, is for six choppers. <br /><br />The deal has been frozen since February, 2013 hours after Italian police arrested the top boss of Finmeccanica – the parent company – and the Defence Ministry ordered an enquiry by the Central Bureau of Investigation. The CBI is probing the role played by several individuals, including former Indian Air Force chief S P Tyagi and three of his brothers in the lucrative arms deal. The Comptroller and Auditor General too spotted several flaws with the VVIP chopper contract, signed in 2010.<br /><br />The company last month initiated arbitration procedure against the Defence Ministry for unilaterally freezing the contract without providing any proof of wrong-doing on the company’s part. But the government made it clear that India would not be party to such unilateral arbitration.<br /><br />There is “no question” of India getting involved in the arbitration process initiated by AgustaWestland in the chopper scam, Defence Minister A K Antony has stated. Last week, the firm nominated former Supreme Court judge Justice B N Srikrishna for arbitration in the case. “Our stand is clear that there is no issue of arbitration. We have already given them a show-cause notice and they have not replied so far. Let them reply. We will take a decision after they reply,” Antony has said.<br /><br />Ministry officials, however, pointed out the arbitration proceedings were not applicable on the breach of pre-contract integrity pact of the ministry, which prevents a company from offering bribe or undertaking any other illegal activities to grab any defence contract worth more than Rs 100 crore.<br /></p>
<p>The Defence Ministry will not take any hasty decision and seek the opinion of the Law Ministry on the response given by the Anglo-Italian firm AgustaWestland, before taking any decision on the controversial VVIP helicopter deal, which may be scrapped eventually.<br /><br /></p>.<p>The company submitted its response to the Defence Ministry's show-cause notice on Monday – a day ahead of the deadline – but an official said the response and Law Ministry’s opinion would be studied first before any decision is taken on the contentious deal.<br /><br />India had paid a substantial part of the Rs 3,700-crore deal and received three helicopters – two in VIP and one in cargo configuration – from the company. The money paid so far, is for six choppers. <br /><br />The deal has been frozen since February, 2013 hours after Italian police arrested the top boss of Finmeccanica – the parent company – and the Defence Ministry ordered an enquiry by the Central Bureau of Investigation. The CBI is probing the role played by several individuals, including former Indian Air Force chief S P Tyagi and three of his brothers in the lucrative arms deal. The Comptroller and Auditor General too spotted several flaws with the VVIP chopper contract, signed in 2010.<br /><br />The company last month initiated arbitration procedure against the Defence Ministry for unilaterally freezing the contract without providing any proof of wrong-doing on the company’s part. But the government made it clear that India would not be party to such unilateral arbitration.<br /><br />There is “no question” of India getting involved in the arbitration process initiated by AgustaWestland in the chopper scam, Defence Minister A K Antony has stated. Last week, the firm nominated former Supreme Court judge Justice B N Srikrishna for arbitration in the case. “Our stand is clear that there is no issue of arbitration. We have already given them a show-cause notice and they have not replied so far. Let them reply. We will take a decision after they reply,” Antony has said.<br /><br />Ministry officials, however, pointed out the arbitration proceedings were not applicable on the breach of pre-contract integrity pact of the ministry, which prevents a company from offering bribe or undertaking any other illegal activities to grab any defence contract worth more than Rs 100 crore.<br /></p>
