The Ministry of Defence has initiated action for the cancellation of contract for procurement of 12 AW101 helicopters for the use of VVIPs.
The MoD today issued a formal show cause notice to the AgustaWestland of UK seeking cancellation of contract and taking other actions as per the terms of the contract and the Integrity Pact.
MoD had already put on hold further payments to the company on Wednesday.
With today's show cause notice, the operation of the contract has been put on hold.
The company has been asked to reply to the notice in seven days.(ANI)