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Italian Court Will Halt Cashing of Chopper Deal Bank Guarantees By India

March 19, 2014 by KRS Leave a Comment

  • Augusta Westland VVIP chopper deal was probed by CBI in Feb 2013 after the arrest Finmeccanica CEO Giuseppe Orsi on alleged kickbacks to Indian officials.
  • Contract was signed on Feb 2010 & Augusta Westland had delivered 3 of the 12 helicopters.
  • Rs.240 crore worth of guarantees held with Indian banks have already been cashed.
  • Finmeccanica filed a plea at the Italian court to prevent Indian Government from cashing back guarantees worth R.2360 crore as part Defence Ministry imposed post-contract termination penalty.
  • Italian court barred encashment of bank guarantees from Italian banks owing to breach of pre-contract integrity pact & agreement by the supplier.
  • India will vigorously pursue all options at hand to undo this move.

Exams Perspective:

  1. Augusta Westland Chopper deal
  2. CBI
  3. India Italy Bilateral Relations

Filed Under: Current Affairs, International Tagged With: Augusta Westland Chopper deal, CBI, India Italy Bilateral Relations

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