The Indian Defence Ministry ordered a CBI probe into the Rs 4,040 crore deal for 12 VVIP Augusta Westland helicopters following arrest of its Italian manufacturer Finmeccanica’s chief on Feb 12, 2013 on a warrant alleging that he paid bribes to win an Indian contract. Three of the helicopters have already been delivered to the Indian Air Force. Some 30 per cent of the contracted amount has already been paid. In fact, a scale model of the helicopter had formed part of the IAF tableaux during this year’s Republic Day parade. The Italian prosecutors say that the company – Anglo-Italian firm Augusta Westland – paid kickbacks to the tune of Euro 51 million (Rs 370 crore). The kickbacks worth Rs 40 million allegedly paid to officials to grease contracts for Finmeccanica were being probed and that Delhi was considering the deferral of the helicopter deal, worth 560 million Euros. Under Indian defence procurement rules, companies found to have been involved in corruption can be punished with blacklisting and fines.
Part of these payments allegedly ended up with the three brothers, Juli, Docsa and Sandeep Tyagi, whose cousin Sashi Tyagi was former IAF Chief. None of the Tyagis has been accused of wrongdoing by officials in India. Whatever the truth, the chipper issue has put UPA II government in bad light once again, and ironically. at a time when political parities are gearing up for 2014 elections.
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