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A day after the ministry of defence (MoD) stated that it had “initiated action for cancellation of contract for procurement of 12 AW101 helicopters for the use of VVIPs”, the ministry announced on Saturday that it was sending a senior official to Italy to ascertain the facts in the case.The article goes on to imply that this is all political. It happened with the cancellation here in the US and it could happen in India. I'll have to write people with better visibility on Indian procurement to get the take of people with more knowledge on the workings of the Indian government.
An MoD release on Saturday stated: “MoD is deputing a senior joint secretary to Italy to gather as much evidence as possible relating to the allegations of corruption in the acquisition of 12 AW101 VVIP helicopters for the Indian Air Force. The official, A K Bal, will be leaving for Rome as early as on Monday.”
The legal action initiated by the MoD yesterday amounted to the issue of a showcause notice to AgustaWestland “seeking cancellation of contract and taking other actions as per the terms of the contract and the integrity pact.” The Anglo-Italian company has been given seven days to respond.
On Wednesday, the MoD had put all payments to AgustaWestland on hold. With the showcause notice on Friday, the MoD declared, “The operation of the contract has been put on hold”.
