India to probe Finmeccanica copter deal as Italy arrests CEO

12 Feb 2013

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The defence ministry has ordered a Central Bureau of Investigation (CBI) probe into the Rs4,000-crore deal with Italian defence company Finmeccanica for the purchase of 12 helicopters to fly VVIPs.

The development comes after the Italian media reported that Finmeccanica chief executive Giuseppe Orsi had been arrested on charges of bribery, corruption and embezzlement directly related to the deal.

A defence ministry official said the kickbacks were allegedly worth Rs4 crore ($744,000) and the matter was under investigation by Indian law enforcement agencies.

Orsi had been under investigation for months. He has denied any wrongdoing in the deal for the sale of a dozen AgustaWestlands to India in 2010. Three AgustaWestland helicopters have already been delivered to India.

Officials in the defence ministry in India say that their own investigation of the helicopter deal has not exposed any financial malpractices, and that the deal for the helicopters for use by VIPs, including the prime minister, will not be impacted by the arrest in Italy.

The state-controlled Finmeccanica group has been investigated in Italy for three years for allegedly paying bribes in different countries and at home. The company has refuted the charges.

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