The Defence Ministry has asked the Indian embassy in Rome for details on reports that Italian prosecutors have discontinued proceedings against arms major Finmeccanica in the alleged scam to finalise Rs 3727 crore (Euro 556 million) deal to sell 12 VVIP helicopters to India.
Officials would not like to comment on the settlement based purely on media reports, but one of them said there will be no change in the “ground situation” irrespective of the report or decisions of the court. The government had cancelled the deal, received parts of the money it paid in advance and decided to join the arbitration process for settling the dispute.
The Defence Ministry would not blacklist Finmeccanica till the Central Bureau of Investigation completes its probe.
The government asked the Indian Air Force not to fly the three Agusta choppers for VVIP flight, which arrived in Delhi almost a year and a half ago. They were never formally inducted in the service since the scam behind the deal came out within months of their arrival and allegations of kickbacks flying thick against several individuals including a former IAF chief.
According to media reports, prosecutors in the Italian city of Busto Arsizio shelved proceedings against Finmeccanica for alleged corruption in selling the 12 AW-101 helicopters to India.
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