Published: 05th October 2013 07:44 AM
Last Updated: 05th October 2013 07:44 AM
Downcast over the bribery row in its Rs 3,727-crore VVIP chopper deal with no end in sight in the CBI probe or the court proceedings in Milan, Italian major AgustaWestland on Friday invoked arbitration to force India to either allow it to deliver the remaining nine AW-101 helicopters and receive payments for the same, or to pay it compensation in lieu of performance of the contract.
It also reminded the Indian government that the 2010 deal did not provide for "suspension" of the contract and that the same had been done by the Ministry of Defence (MoD) unilaterally. The arbitration, if the MoD agrees to it, would be held in India under the Indian Arbitration and Conciliation Act of 1996 and the decision of the three-member arbitrators — one each from the MoD and AgustaWestland and the third agreeable to both — would be binding on both the Indian government and the Italian firm, whose parent company Finmeccanica is under investigation in Italy over allegations of paying kickbacks while bagging foreign orders.
A surprised MoD said it was not aware of the Italian company invoking the arbitration clause. Senior officials in the Ministry said they "don't know" about the company's decision and refused to comment on the issue till they had all the details in this regard.
India had suspended the contract in February after then Finmeccanica CEA Giuseppe Orsi was arrested in Italy over bribery charges, including the Indian choppers deal.
Also read: Act swiftly on Agusta deal, says IAF chief
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