India on Thursday formally asked Italian firm Finmeccanica to state whether any money was illegally paid to any Indian entity or individual in VVIP choppers deal .
The CEO of AgustaWestland has been asked to categorically state the clear position in view of the current developments indicating specifically if any financial transaction has taken place with any Indian individual or entity which would be violative of the Integrity Pact or any other terms and conditions of the contract.
Noting that the contract with AgustaWestland carried an integrity pact that bars paying of bribes or involvement of middlemen, the Ministry warned of strict action including cancellation of contract, recovery of payment, blacklisting and penal action can be taken against the vendors.
It said 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 Ministry of Defence came out with a fact-sheet detailing the sequence of the 3600 crore deal for 12 helicopters clinched in 2010 by a Finmeccanica subsidiary AgustaWestland.
It notes that the mandatory technical requirements of the chopper were changed in the tender during the Vajpayee government in 2003, with the then National Security Adviser Brajesh Mishra playing a key role.
Giving details, the fact-sheet said that the first Request for Proposal was issued in March 2002 mandating requirement of 6,000 metre (18,000 feet) flying altitude for selection of the chopper.This requirement made it clear that AgustaWestland could not participate in the deal.
However, in a meeting taken by the then NSA (Brajesh Mishra), it was noted that the President and the Prime Minister have rarely made visits to places involving flying at an altitude beyond 4500 metres (15,000 feet) and it was decided to make the mandatory requirement for operational altitude 4500 meters.
Mishra suggested that the then IAF Chief and Defence Secretary may jointly review the matter to draw up realistic mandatory requirements satisfying operational, security and convenience requirements of VVIPs and also set in motion a fast track process for selection and acquisition of the replacement helicopters.
In these deliberations, the stakeholders took a decision to increase the number of choppers for VVIP duties from eight to 12.