07 February 2014

India: Scrapping of Agusta Westland Helicopter Deal & Blacklisting of Company


Scrapping of Agusta Westland Helicopter Deal

The contract for the supply of 12 VVIP / VIP helicopters signed with M/s Agusta Westland International Limited (AWIL) on 8th February, 2010 has been terminated by the Government of India with effect from 1st January, 2014 on grounds of breach of the provisions of the Pre-contract Integrity Pact and breach of the terms of the contract by M/s AWIL. Subsequent to the termination of the contract, two Bank Guarantees amounting to Rs.240 crores approx. have been encashed. Advance amount is adjusted against the payments for deliveries under the contract and is secured by advance bank guarantees provided by the seller on Deutsche Bank, Milan. Demand was made on Deutsche Bank, Milan for encashment of advance bank guarantees. However, the seller has obtained ad interim stay from the Ordinary Tribunal of Milan, Italy against this. Steps are underway to get the stay vacated. 

This information was given by Defence Minister Shri AK Antony in a written reply to Shri KN Balagopal in Rajya Sabha today


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Blacklisting of Agusta Westland Company 

The contract for the supply of 12 VVIP / VIP helicopters signed with M/s. Agusta Westland International Limited (AWIL) on 8th February, 2010 has been terminated by the Government of India with effect from 1st January, 2014 on grounds of breach of the provisions of the Pre-contract Integrity Pact and breach of the terms of the contract by M/s AWIL. No decision has been taken till date to debar the said company 

This information was given by Defence Minister Shri AK Antony in a written reply to Shri Thaawar Chand Gehlot in Rajya Sabha today.