The Defence Ministry had issued the final show cause notice to AgustaWestland on October 21 asking it to explain why “all or any action as prescribed, including cancellation of the contract, should not be taken against them for violating the terms of the pre-integrity pact and the contract for procurement of 12 VVIP choppers”.
The government has already frozen the contract for supply of 12 AW-101 VVIP choppers to the IAF after allegations that Rs 360 crore were paid as bribe in the case in which two top officials of the company were accused.
IAF has already received three helicopters and delivery of the rest has been put on hold.