VVIP Choper Agreement with AgustaWestLand International Ltd. (AWIL) Terminated

The Government of India has terminated with immediate effect the Agreement that was signed with M/s. AgustaWestLand International Ltd. (AWIL) on 08 February, 2010 for the supply of 12 VVIP/VIP helicopters on grounds of breach of the Pre-contract Integrity Pact (PCIP) and the Agreement by AWIL.

Based on the opinion received earlier from the Attorney General of India, it has been the view of the Government that integrity-related issues are not subject to arbitration. However, AWIL has since pressed for arbitration and appointed an arbitrator from its side. In view of this, MoD sought afresh the opinion of the Attorney General. With a view to safeguard the interests of the Government, MoD has nominated Hon’ble Mr Justice BP Jeevan Reddy as its arbitrator.

Former Indian Air Force chief (IAF) SP Tyagi is one of the accused in the case, which is being probed by the Central Bureau of Investigation (CBI).
The cancellation came after a meeting between defence minister AK Antony with Prime Minister Manmohan Singh in New Delhi earlier in the day.The deal was for the supply of 12 helicopters for VVIPs. Out of these, AgustaWestland has already delivered three.