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India,Italy,United Kingdom : INDIA appleas to MILAN'S ruling in the helicopter deal that was cancelled.

India will able to appeal in a Milan court s ruling that denied the country 278 million in bank guarantees in a helicopter deal that was canceled after top officials at AgustaWestland and Finmeccanica, were arrested on bribery charges.

In 2010, the Indian Defense Ministry finalized a 560 million contract with AgustaWestland to buy 12 helicopters. India has been trying to recover its investment after scrapping the deal, citing a breach of the contract of an integrity pact, which forbids parties from using unfair practices to secure contracts.

Giuseppe Orsi, then Finmeccanica chairman and chief executive, and Bruno Spagnolini, then the head of AgustaWestland, were arrested by the Italian authorities on charges of bribing Indian officials to win the deal.

The Indian government suspended payments to AgustaWestland, but payments of more than 40% of the sum had already been made.

The Indian Central Bureau of Investigation filed for bribery charges against Shashi Prakash Tyagi, the former chief of the Indian Air Force, 12 other people and 6 companies. That investigation is still pending.

India has liquidated guarantees held by the State Bank of India and Deutsche Bank that were worth about 28 million.

The Italian court dismissed India s 278 million claim deposited as a guarantee with Deutsche Bank s Italian unit.

The Indian government is intending to pursue all options for encashment of the bank guarantees.

The Indian government and Finmeccanica have begun the process of arbitration in India.

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Publication:Mena Report
Geographic Code:9INDI
Date:Mar 24, 2014
Words:253
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