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India scraps AW101 deal

2nd January 2014 - 11:12 GMT | by Neelam Mathews in New Delhi

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India has terminated the $750 million agreement signed with AgustaWestland in 2010 for 12 AW101 VVIP/VIP helicopters on the grounds of a breach of the pre-contract Integrity Pact. 

The termination, which comes into immediate effect according to a Ministry of Defence statement, follows an investigation into allegations of bribery involving Indian officials.

AgustaWestland said it had not received any communication from India's MoD and was ‘therefore unable to comment beyond reiterating the denial of allegations of wrong doing’. 

The company had started arbitration proceedings in October and the MoD statement noted that the Attorney General of India had opinioned that

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