Agusta may move court against MoD
Upset over the freeze in payment by India of the next instalment of money as part of the `3,546 crore-deal for the procurement of 12 AW-101 helicopters for VVIP use, Italian-owned UK-based company Agusta Westland may examine its legal options and could even drag the ministry of defence (MoD) to court, government sources said on Friday.
Sources said there are indications that Agusta could be planning to move court on the issue. Agusta Westland had recently written to the Indian government asking for release of the next instalment of payments as part of the deal that was inked between the MoD and Agusta in 2010.
The MoD had earlier put further payments on hold regarding the deal following surfacing of bribery allegations in Italy. Agusta Westland had earlier reportedly maintained that the MoD cannot unilaterally suspend the contract or withhold payments that become due under its terms and that such actions appear to amount to a breach of the contract.
Speculation is rife that Agusta wants the release of nearly `2,400 crore which had been put on hold by the Indian government, with the UK-based firm arguing that as per the principles of justice under Indian and Italian laws, till proven guilty, no individual or organisation can be held guilty and that investigations were still on in both the countries in the case.
India had earlier made an initial payment to Agusta before the bribery allegations surfaced but the Indian government has been maintaining that it can recover that initial amount by invoking certain clauses in the deal if it is proved that bribes were paid by Agusta. India had so far received three helicopters from Agusta out of the total of 12. Speculation has been rife that about `1,000 crore may have been paid initially as part of the contract amount by the Indian government to Agusta.
The MoD is also waiting for the CBI to complete its probe in the matter before taking a decision on whether the deal should be cancelled and whether Agusta should be blacklisted. This could be a strong possibility in case the CBI indicts Agusta for any payment of bribes to clinch the deal. Agusta has so far denied any wrongdoing.
Agusta had, earlier this year, contended that any cancellation of the contract by the MoD will cause substantial financial losses to Agusta Westland and that “adverse media speculation” cannot be grounds for cancellation. Agusta had also said then that it “expects to be paid in a timely manner”.
Post new comment