Q. No. 4531 ANSWERED ON 08.05.2013

Question: Will the Minister of DEFENCE be pleased to satate :-

(a) the details of the agreement entered into between India and Agusta Westland for procuring twelve VVIP helicopters;

(b) the details of legal implications that forces Government not to cancel VVIP helicopters deal with Agusta Westland and blacklisting Finmeccanica;

(c) whether it is a fact that CBI has come to the conclusion that prima-facie there is a case of corruption in the deal; and

(d) if so, the reasons for not cancelling the deal?

Answer: Minister of Defence (Shri A.K. Antony)

(a) The Ministry of Defence (MoD) signed a contract with M/s Agusta Westland, U.K. on February 8, 2010 for procurement of 12 VVIP / VIP helicopters at a total cost of Euro 556.26 million.

(b) Determination of Contractual violation and criminal liability, if any, is under examination and investigation.

(c) On conclusion of the Preliminary Enquiry, Central Bureau of Investigation (CBI) has registered a Regular Case against 19 persons, including 6 companies. The FIR contains allegations of criminal conspiracy, abuse of official position, offering illegal gratification and acceptance of illegal gratification by concerned persons / middlemen.

(d) Decision for cancelling the contract will depend on the outcome of the CBI investigation.