The Law Ministry has also told the Defence Ministry that the arbitration proceedings initiated by AgustaWestland are also not binding on it.
The sources claimed that the government had been preparing to issue the notice for cancellation much before AgustaWestland took the step.
The Defence Ministry had earlier issued a show cause notice to AgustaWestland on February 15 asking it to explain within seven days the bribery allegations against it after the alleged scam was exposed in Italy.
