Govt initiates process to scrap chopper deal, sends Italian firm showcause notice

It also cited the clauses of the integrity pact that was signed, noting that the contract bars paying of bribes or involvement of middlemen. The clause warned of "strict action including cancellation of contract, recovery of payment, blacklisting and penal action" against the vendors.

The defence ministry warned that the government is "determined to take all possible legal and administrative action against the guilty parties and accordingly has ordered a thorough probe by CBI".

The statement also said that the first request for the proposal was issued in March 2002, mandating 6,000 metres as the flying altitude for selection of the chopper.

Timeline

* 2005-06: Carlo Gerosa and Guido Haschke, business partners based in Switzerland, approach AgustaWestland claiming they can help it with the Indian contract. Key contention that the technical requirements of the contract can be tweaked allegedly swung the deal.

* 2007: After the down selection of AgustaWestland for the contract along with an American contender, payments start funneling in from the consultancy contracts. At first they are small — ranging from Euro 111,000 to 286,987 — but over next few years swell up to an average of Euro 550,000 per month.

* 2011: An Agusta insider spills the beans to Italian investigators

* 2012: Italian prosecutors start filing cases. Name Indian players

* 2013: Finmeccanica CEO held, former IAF chief named as receiving bribes

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