adminIndia has cancelled a $753m (£455m) helicopter deal with Italian defence giant Finmeccanica after allegations of corruption, officials say.
The contract was for 12 luxury helicopters to transport VIPs. Defence officials said they scrapped the deal because an integrity pact had been breached by the firm’s Anglo-Italian helicopter arm AgustaWestland. India suspended payments in February after allegations that AgustaWestland paid bribes to win the contract.
The deal for 12 three-engine AW-101 helicopters was signed in February 2010 after the company beat off competition from US and Russian rivals.
The aircraft were for an elite squadron of the Indian Air Force which ferries around the president, the prime minister and other VIPs.
Three of the 12 British-made helicopters ordered have already been delivered to India. The remaining nine were due to be delivered by the middle of 2014 – that order has now been stopped. – BBC News.
Online Reporter