India has recovered the entire Rs.1,818 crore it paid to Anglo-Italian company AgustaWestland by invoking bank guarantees after it junked a Rs.3,600 contract for purchasing 12 AW 101 helicopters meant for use by VVIPs.
Following an Italian court's order last month that cleared the final stumbling block in the way of recovering the money, the Defence Ministry encashed the guarantee deposited by the company in Italian banks.
The Defence Ministry had earlier recovered Rs.250 crore deposited in an Indian bank by the company.
India had paid 45 per cent of the value of the contract to the company, which had delivered three helicopters.
The IAF has mothballed these helicopters as they cannot be used.
With the recovery of money, a chapter in the tainted contract has been closed.
The Defence Ministry is now awaiting the outcome of an investigation in Italy and at home to take further action.
The CBI is yet to conclude its probe into allegations of kickbacks being paid for the contract.
Note
The deal was terminated in Jan 01,2014
Comptroller and Auditor General (CAG) said on Tuesday Aug 13,2013 that the
government had failed to follow defence procurement policy rules in
awarding a 560 million euros ($744.43 million) luxury helicopter deal to
Agusta Westland, a division of Italy's Finmeccanica.
"Several instances have been observed where the ministry had deviated from the provisions of the DPP (Defence procurement policy) 2006 and RFP (request for proposals) issued in September 2006," CAG said in the report presented to parliament.
Both Italy and India are investigating the deal.
Following an Italian court's order last month that cleared the final stumbling block in the way of recovering the money, the Defence Ministry encashed the guarantee deposited by the company in Italian banks.
The Defence Ministry had earlier recovered Rs.250 crore deposited in an Indian bank by the company.
India had paid 45 per cent of the value of the contract to the company, which had delivered three helicopters.
The IAF has mothballed these helicopters as they cannot be used.
With the recovery of money, a chapter in the tainted contract has been closed.
The Defence Ministry is now awaiting the outcome of an investigation in Italy and at home to take further action.
The CBI is yet to conclude its probe into allegations of kickbacks being paid for the contract.
Note
The deal was terminated in Jan 01,2014
"Several instances have been observed where the ministry had deviated from the provisions of the DPP (Defence procurement policy) 2006 and RFP (request for proposals) issued in September 2006," CAG said in the report presented to parliament.
Both Italy and India are investigating the deal.
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