BackIndia seeks to recover $367 mn from AgustaWestland
New Delhi, however, agrees to AgustaWestland's calls for arbitration
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New Delhi: Italian defence giant Finmeccanica’s troubles in India are deepening, with the New Delhi government seeking repayments worth some €270 million over a scrapped helicopter deal.
The government’s demand threatens to complicate efforts by AgustaWestland, a division of cash-strapped Finmeccanica, to mend fences with India, the world’s biggest arms buyer. India last week cancelled a €560 million deal with AgustaWestland for 12 AW101 helicopters over what it termed a breach of integrity relating to alleged corruption.
New Delhi, however, agreed to AgustaWestland’s calls for arbitration. It will use this process as part of its push to get back the amount it has already paid, defence ministry officials told Reuters. AgustaWestland has received just over 43% of the deal’s value, a sum that the Anglo-Italian firm matched with bank guarantees to be reclaimed after the helicopters were delivered, said the defence officials, who asked not be identified.
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