India on Wednesday terminated the Rs. 3,726-crore, scam-ridden VVIP chopper deal with AgustaWestland International Limited (AWIL) on the grounds of breach of pre-contract integrity pact (PCIP). The deal for supply of 12 choppers, of which three have already been delivered, came under the scanner following allegations of kickbacks to senior Indian Air Force officers and others to the tune of nearly Rs. 360 crore.
While reports about the government scrapping the deal surfaced soon after Defence Minister A.K. Antony met Prime Minister Manmohan Singh in the morning, the Defence Ministry confirmed the cancellation only around 5.30 p.m; it added that the arbitration route would be taken. Justice B.P. Jeevan Reddy will be the arbitrator for the Ministry.
Earlier, the government had maintained ,on the basis of the opinion of the Attorney-General, that “integrity-related issues are not subject to arbitration”. However, with AWIL pressing for arbitration, the Defence Ministry followed suit after getting a fresh opinion from the AG.
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