India on Wednesday cancelled its Rs 3,600 crore deal with Anglo-Italian firm AgustaWestland for supply of 12 VVIP choppers to the Air Force in view of charges that kickbacks to the tune of Rs 360 crore were paid in it.
The decision to scrap the 2010 deal was taken nearly (rpt) nearly a year after reports surfaced that two top officials of the company had allegedly paid bribes to bag the contract. Former IAF chief S P Tyagi is one of the accused in the case, which is being probed by CBI.
The cancellation came after a meeting between Defence Minister A K Antony with Prime Minister Manmohan Singh here earlier in the day, Defence Ministry sources told PTI.
The deal was for supply of 12 helicopters for VVIPs and out of these AgustaWestland has already delivered three.
India has now decided to go in for arbitration with the Anglo-Italian firm, Defence Ministry sources said.