Defence Minister A.K. Antony has already said the company has violated the contractual obligations.
Sources said the ministry has asked AgustaWestland why actions, including cancellation of contract, should not be invoked for "violation" of the terms of the pre-integrity pact.
The ministry has already frozen the contract after allegations of kickbacks against top officials of the Anglo-Italian firm.
The ministry had concluded a contract with AgustaWestland in February 2010 for supply of 12 AW-101 helicopters at a price of euros 556.262 million (Rs.3,726.96 crore). The helicopters were for the IAF's elite Communication Squadron, which ferries the president, prime minister and other VVIPs.
The Comptroller and Auditor General also slammed the defence ministry and the IAF for deviations from procedures in procurement of the choppers in the AgustaWestland deal.
