India Wednesday said that it has ordered a high level probe into the multi-million-U.S. dollar Italian helicopter deal scam, making it clear that the defense pact could be scrapped if any wrongdoing comes to the fore.
Indian Defense Minister A.K. Antony said that the country's premier probe agency, the Central Bureau of Investigation (CBI), would probe into allegations of kickbacks in the purchase of 12 choppers, to ferry VVIPs including the prime minister, from Italian aerospace giant Finmeccanica, two days after the defense firm's chief executive was arrested in Milan on corruption charges.
"Once we get the preliminary inquiry report from CBI, strongest action will be taken against those found guilty. Nobody will be spared whatever may be the consequences," the defense minister told the media in the national capital.
India had in 2010 inked the 754 million U.S. dollars deal with Finmeccanica to acquire 12 helicopters from the Italian defense company's subsidiary AgustaWestland. Three helicopters have been delivered. Sources said the Indian Defense Ministry has now decided to put on hold the receipt of the remaining nine helicopters.
Meanwhile, former Indian Air Force chief S.P. Tyagi, alleged to have been bribed by Finmeccanica to swing the controversial chopper deal in favor of the company, has denied any wrongdoing. He has also refuted claims of his kin's involvement in the deal.
"I have no idea how my name has appeared... I am shocked and in disbelief. I have had nothing to do with this. How could I have been bribed?" he told the media.
Giuseppe Orsi, the head of Finmeccanica, was arrested on Monday by Italian authorities in relation to a probe into international corruption. Italian prosecutors have alleged that he paid huge bribes to ensure the sale of 12 helicopters to India. He denied any wrongdoing.
Corruption in defense deals is not new in India which is the largest importer of weapons in the world. The country's ruling Congress party was in the 1980s embroiled in another major defense deal scandal allegedly involving the then Prime Minister Rajiv Gandhi over the purchase of Swedish Bofors artillery guns.
