India bans Finmeccanica from bidding for contracts amid graft case

Tags: News
India has banned Finmeccanica from future contracts, a defence ministry source said on Tuesday, as it presses on with an investigation into a scrapped helicopter contract with the Italian company.

In January, India cancelled a 560 million euro ($751 million) order with Finmeccanica's AgustaWestland unit for 12 helicopters after Italian prosecutors alleged the defence group had paid bribes to Indian officials to win the contract.

"Where a tender process is yet to commence, a company under the Finmeccanica group of companies should not be given tender papers for purposes of bidding," a defence ministry source said.

The source asked not to be identified in line with defence ministry policy.

Finmeccanica has denied the allegation of wrongdoing and on Tuesday declined to comment on the decision to bar the firm for now from the Indian defence market, one of the world's fastest growing.

India will continue with contracts involving the Italian firm that are under execution, the source added. The government will also honour contracts that have been completed but require follow-through service, such as spares and upgrades, the source said.

The case involving the helicopters has embarrassed the Indian government and put AgustaWestland at risk of a blanket ban from the huge Indian market.

India, where a number of defence deals have been hit by corruption allegations over the past two decades, took delivery of three of the helicopters before the deal stalled.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

Biogas Potential in India

Biogas is a form of renewable energy produced from organic ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture