VVIP chopper deal will be scrapped if any wrongdoing found: Antony

Asked about reports of the alleged role of Tyagi in the deal, the minister said, "I have no information."

The Ministry of Defence also decided to put on hold the receipt of the remaining nine of the 12 helicopters.

Giuseppe Orsi, the head of Italian defence and aerospace giant Finmeccanica, was arrested on Monday in relation to a probe into international corruption.

He is suspected of involvement in the payment of bribes regarding the sale to the Indian government of 12 helicopters produced by Finmeccanica's subsidiary AgustaWestland.

The Defence Minister said, "After the CBI report, we will take serious action that may include cancelling the deal.

"We don't want to jump the gun. We can get our money back even at this stage," he said on the Rs 3600 crore deal.

Asked whether the money paid to the Italian firm so far can be claimed back by the Indian government, Antony said, "If the Indian government paid any amount of the money, as per the provisions of the integrity pact, we can get back the entire money we paid to the vendor."

He mentioned that the Defence Procurement Procedure (DPP) governing all defence deals takes care of the integrity pact by the foreign vendors.

"Not a single pie from the Indian government we will lose. As per the DPP, any contract beyond Rs 300 crores, before finalising the contract the vendor will have to sign an integrity pact with the Government of India, agreeing to our conditions. If they violate that condition, they are liable to criminal action," he said.

The Defence Minister said companies are liable to be prosecuted and blacklisted for their lapses.

He referred to the actions taken by the government in such cases, where six foreign defence firms were blacklisted.

"I told you earlier that a CBI inquiry... after their first report, they recommended certain actions against companies. The moment we received the complaint, we did not hesitate, we blacklisted six companies. Out of that four are most powerful international companies," he said.

... contd.

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