With the Defence Ministry refusing to get into a legal battle with AgustaWestland in the VVIP helicopter scandal, the Anglo-Italian company has threatened to drag it to the international court if it does not get involved in arbitration.
Facing the threat of cancellation of the Rs3,600 crore deal for supplying 12 helicopters to the IAF, AgustaWestland recently sent a notice to the Defence Ministry urging it to opt for arbitration, sources said on Tuesday. The company has already nominated retired Supreme Court judge BN Srikrishna for arbitration.
However, Defence Minister AK Antony recently said “there is no question” of getting involved in the arbitration process. His remark came in the backdrop of the ministry maintaining that arbitration clause does not apply to pre-contract integrity pact and the company violated the integrity pact. This clause bars vendors from hiring a middleman and paying commissions or bribes for bagging the contract.
AgustaWestland representatives also met Defence Ministry officials last month and denied any wrongdoing. They toed the same line in their reply to the final showcause notice issued by the Defence Ministry asking it why the contract with the company not be cancelled for its violation of the integrity pact.