Corruption allegations give India a way out of deal to buy 12 British-made helicopters
By Dean Nelson
India’s Attorney-General has cleared the way for the country's government to cancel its £480m deal with AgustaWestland for 12 British-made helicopters after allegations of corruption.
The contract was suspended by the government in February this year following allegations that commissions were paid by the Italian-owned company to senior defence officials, including relatives of India’s former air chief SP Tyagi.
The allegations, which have been denied by the former air chief, emerged from investigation in Italy which led to an arrest warrant for Giuseppe Orsi, the chief executive of Agusta Westland’s parent company, Finmeccanica. Investigators allege he paid €30m (£25.4m) to a British man, Christian Michel, to act as a middleman between the company and members of the Tyagi family.
It is alleged the commissions were paid to influence the altitude specifications for the helicopter contract to allow AgustaWestland to tender for its AW-101 VVIP model.
India’s Ministry of Defence believes AgustaWestland is in breach of an "integrity act" included in the contract which bans the use of middlemen or the payment of commissions.
Read the full story at The Telegraph (UK)