Aircraft
Legal Fight Looms Over India’s Troubled AW101 Acquisition
India canceled its AW101 order after allegations emerged that the deal was the result of international corruption.
India canceled its AW101 order after allegations emerged that the deal was the result of international corruption.

India’s attorney general, Goolamhussein Essaji Vahanvati, ruled last week that AgustaWestland breached contractual obligations and an associated “integrity pact” in winning a $787 million contract to supply 12 AW101 VIP helicopters to the Indian Air Force (IAF) in 2010, raising the possibility the government will cancel the deal. AgustaWestland and parent company Finmeccanica have continued to deny any wrongdoing and on October 4 the Italian manufacturer formally requested arbitration over the stalled contract. In a written statement AgustaWestland said, “We have no further information compared to what [has been] published by the press. We have not received any Show Cause Notice for the contract cancellation. We have recently launched an arbitration process on contract suspension.”

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