India has initiated action to scrap the deal for purchase of 12 VVIP helicopters from Italian firm AgustaWestland following allegations that kickbacks to the tune of Rs. 362 crore were paid to bag it.

The Defence Ministry has issued a show cause notice to AgustaWestland, asking it to explain within seven days the bribery allegations.

The notice asked the company why the Rs. 3,600 crore deal of 2010 should not be scrapped.

The notice comes a day after the ministry warned of legal action, including invoking integrity pact which provides for cancellation of the contract if bribes are paid and recovery of the money already paid.