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India issues final show cause notice to AgustaWestland - government official
October 23, 2013 / 12:29 PM / 4 years ago

India issues final show cause notice to AgustaWestland - government official

Workers clean an AgustaWestland helicopter AW169 in static display, two days before the opening of the 50th Paris Air Show, at the Le Bourget airport near Paris, June 15, 2013. REUTERS/Pascal Rossignol

India’s defence ministry has issued a final “show cause” notice to AgustaWestland seeking to cancel a deal to buy a dozen helicopters and gave the Italian company 21 days to reply, a government official said on Wednesday.

The official said the company, a subsidiary of Finmeccanica, has been asked to explain why action should not be taken against for violating the terms of the pre-contract integrity pact.

In February, India froze payments on the 560 million euro ($762.91 million) contract to the helicopters after the deal became mired in allegations of bribery and the then-CEO of Finmeccanica was arrested by Italian police for allegedly paying bribes to secure the deal.

AgustaWestland denies the allegations.

Reporting by Nigam Prusty; Writing by Sanjeev Miglani

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