The Telegraph
Saturday , January 25 , 2014
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Copter firm shown door
- India bars Agusta parent from military exhibition

New Delhi, Jan. 24 (PTI): After scrapping the Rs 3,600-crore chopper contract, the defence ministry today said it was ousting AgustaWestland’s parent company, Finmeccanica, from the biennial military exhibition DefExpo starting February 6.

The step comes after India scrapped the contract on January 1 on finding that AgustaWestland allegedly breached the pre-contract integrity pact (PCIP) in the deal for supplying 12 VVIP choppers to the air force.

Finmeccanica had booked space for its group companies at the show but their participation was being cancelled, defence officials said.

The ministry has a clear policy that firms that are blacklisted or have corruption cases pending against them will not be allowed to take part in the exhibition. Over 455 companies are expected to participate this year.

It is learnt that Finmeccanica has paid participation fees. But the official said that the money would be returned to it shortly.

The ministry has a list of 12 companies, which have been blacklisted over a period of time and are not allowed to take part in its ceremonies and exhibitions.

The ministry has not yet blacklisted AgustaWestland or any of its group companies and says it will take a decision after consulting the law ministry and the CBI.

The ministry has asserted that India will not lose any money in the chopper deal, for which 30 per cent payment has already been made.