Italian-owned UK-based company AgustaWestland is understood to have written to the Indian government asking for the release of the next instalment of payments as part of the `3,546-crore deal for the procurement of 12 AW-101 helicopters for VVIP use that was inked between the ministry of defence and Agusta in 2010.
The MoD had earlier put further payments on hold regarding the deal following surfacing of bribery allegations in Italy.
According to news agency reports, AgustaWestland has now told the Indian government 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 contract. Functionaries representing Agusta confirmed a letter had been written but did not comment on its contents. “Neither the contract nor the associated integrity pact confers any rights on the defence ministry to unilaterally suspend the contract or withhold payments that become due under its terms. We regret that such actions appear to amount to a breach of the contract,” news agency reports quoted AgustaWestland as having stated in its latest letter to the Indian government.
According to news agency reports, Agusta wants the release of nearly `2,400 crores, which had been put on hold by the Indian government, with the 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.