AgustaWestland helicopter deal: In first reaction, govt gives itself clean chit
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16.In pursuance of the decision of the CCS the Ministry of Defence concluded a contract for the supply of 12 AW-101 VVIP helicopter with M/s AgustaWestland, UK on 08 February, 2010.
17.The procurement case was, thus, progressed in accordance with the established procurement procedure in a transparent manner with all stages of procurement being followed meticulously. Security aspects as required by SPG/PMO and IAF were fully taken into consideration. The role of PMO which began in 2003 was to ensure that security, communication and other requirements of VVIP security were taken care of and the helicopter for VVIP use is selected on the basis of broad based QRs.
18.Contract signed with M/s. AgustaWestland includes specific contractual provisions against bribery and the use of undue influence. Article 22 of the contract deals with penalty for use of undue influence. This clause entitles the 'Buyer' to cancel the contract with the 'Seller' and recover from him the amount of any loss arising from such cancellation. Article 23 of the contract dealing with agents and agency commission requires the 'Seller' to confirm and declare that he has not engaged any individual or firm, whether Indian or foreign, whosoever, to intercede, facilitate or in any way to recommend to the Government of India or any of its functionaries, whether officially or unofficially, to award of the contract to the 'Seller' nor has any amount been paid, promised or intended to be paid to any such individual or firm in respect of any such intercession, facilitation or recommendation. This clause further entitles the 'Buyer' to consider cancellation of the contract without any entitlement or compensation to the 'Seller' who shall be liable to refund all payments made by the 'Buyer' in terms of the contract along with interest.
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